Bill Gates To Buy $2.2 billion stake In Four Seasons Hotels and Resorts
Main Photo: Four Seasons Hotel Tunis
Date: September 2021
Name: Four Seasons Hotels and Resorts
Location: 121 hotels and resorts, and 46 residential properties in 47 countries
Number of Keys: TBA
Seller: Kingdom Holding Company
Buyer: Cascade Investment, a Company Controlled by Bill Gates
An affiliate of Cascade Investment, a company controlled by Bill Gates, has entered into a definitive agreement to acquire a controlling interest in Four Seasons Hotels and Resorts. The $2.2 billion stake is being bought from Saudi Prince Alwaleed bin Talal, nicknamed “the Warren Buffett of Arabia.”
In the all-cash deal, Cascade will increase its existing 47.5% stake to 71.25% by purchasing half of the existing 47.5% stake owned by an affiliate of its long-term investment partner (and the hotel chain’s largest shareholder) Kingdom Holding Company for $2.21 billion, valuing Four Seasons at a $10 billion enterprise value. Cascade first invested in Four Seasons in 1997.
The Four Seasons investment is Bill Gates’ first major purchase since his divorce, announced in May. Although much of the public’s attention has been on the Gates’ $50 billion family foundation, a larger chunk of their shared fortune resides in Cascade, which manages more than $130 billion of investments across a wide range of industries and sectors.
Four Seasons founder and chairman, Isadore Sharp, through Triples Holdings Limited, will retain his 5% stake.
“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,” said Four Seasons CEO John Davison. “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.”
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.
The sale is expected to close in January 2022, pending regulatory approvals and the satisfaction of other customary closing conditions.
THPT Comment: Despite predicting that half of the business travel would disappear after the pandemic, Bill Gates is showing his faith in luxury hotels with his latest investment.
First Seen: Japan Today
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