Adedapo Adesanya
By Adedapo Adesanya
The fourth richest man in the world, Mr Bill Gates, will take control of the Four Seasons Hotel chain after his investment firm agreed to acquire a stake from Saudi Prince Alwaleed bin Talal’s Kingdom Holding Co, in a bet that luxury travel will rebound from a pandemic-induced slump.
Mr Gates’s Cascade Investment LLC will pay $2.2 billion in cash to boost its stake in Four Seasons Holdings to 71.25 per cent from 47.5 per cent, according to a statement last week.
Kingdom Holding, which will retain 23.75 per cent of the hotel chain, plans to use proceeds from the transaction for investments and to repay debt.
Four Seasons founder and chairman, Mr Isadore Sharp, through Triples Holdings Limited, will retain his 5 per cent stake.
Mr Sharp founded Four Seasons in 1960 and set the company on its path toward global expansion. Four Seasons now manages 121 hotels and resorts, and 46 residential properties in 47 countries complemented by a strong pipeline of more than 50 projects at various stages of development.
Four Seasons shareholders took the company private in 2007, when it managed 74 hotels, with Mr Gates and Mr Alwaleed leading the deal. The new owners expanded the company’s footprint to more markets in a bid to capitalise on what was then a booming market for luxury travel.
It has also expanded efforts to attach its brand to luxury homes, as real estate developers realised that affluent buyers would pay more to live in a condominium or residential community associated with the hotel brand.
The sale is expected to close in January 2022, pending regulatory approvals and the satisfaction of other customary closing conditions.
Speaking, Four Seasons CEO, Mr John Davison, stated that, “As we mark our 60th anniversary and look back on the profound impact that Four Seasons has had on luxury hospitality we also look forward with tremendous excitement and confidence in the future of the industry.
“The unwavering support and partnership of our shareholders has and continues to be critical as we capitalise on growing opportunities to serve luxury consumers worldwide.
“Our company is at yet another key moment in its storied history and the confidence of our shareholders in Four Seasons and our strategic vision help position the iconic Four Seasons brand for continued success.”
