As previously disclosed, the Four
Seasons management contract for The Regent Hong Kong expired on December
31st, 2000. The contract had been extended on an interim basis to May 31st,
2001. The majority owner of the property has now notified the Company that
it has committed to sell its ownership interest to Bass PLC, which expects
to begin managing the Hotel on June 1st, 2001.
During 2000, the Company received approximately C$5.1 million in management
fees from The Regent Hong Kong. The Company will also receive management
fees from the Hotel until May 31, 2001.
Four Seasons continues to own 25% of the entity, which subleases the
Hotel for the ten-year period ending in December 2010. The rent for the
renewal period is subject to a rent arbitration process. During 2000, Four
Seasons received approximately C$7.4 million of dividend distributions
from this ownership interest.
Douglas Ludwig, Executive Vice President and Chief Financial Officer,
noted, ``Although there is a loss of management fees, we continue to be
entitled to receive distributions from the ownership interest. We also
continue to focus on a number of other exciting opportunities, such as
the new Four Seasons Hong Kong, which was announced separately today.''
The new luxury hotel will be part of the prestigious Hong Kong station
mixed-used development, located in the centre of Hong Kong's Central district
and financial core.
It is expected that Bass PLC will offer to retain all employees of the
hotel and will honour all bookings.
With a history spanning four decades and a portfolio that now extends
to six continents, Four Seasons Hotels and Resorts is the world's leading
operator of luxury hotels, currently managing 51 properties in 23 countries.
The award-winning Canadian company has claimed first position on numerous
honors lists, among them the AAA Five Diamond awards (receiving more than |
Four Seasons Hotels and Resorts Expands
Its Asian Portfolio With an Agreement to Operate New Hotel in Hong Kong
TORONTO - May 21, 2001--Four Seasons Hotels Four Seasons Hotels Inc.
(NYSE:FS) confirmed that it has finalized an agreement to manage the new
Four Seasons Hotel Hong Kong, which will be the Toronto-based company's
first Four Seasons-branded property in the city.
The new luxury hotel will be part of the prestigious Hong Kong station
mixed-use development, located in the centre of Hong Kong's Central district
and financial core. The Hotel will be the second property for the company
in China, following the opening of Four Seasons Hotel Shanghai.
The Hotel is part of a larger mixed-use development consisting of four
tower buildings, including two landmark office towers of 88 floors and
38 floors, a 48 story luxury Four Seasons Suites and the 38 story Four
Seasons hotel. The Hotel is expected to open in 2004 and the Company will
not be an investor in the project.
Four Seasons Hotel Hong Kong will have about 400 guestrooms, four restaurants,
extensive meeting and function space and health and fitness facilities.
Four Seasons Hotel Hong Kong will also provide service to the complex's
luxury apartments.
``This agreement signifies that we have made a major, long-term commitment
to Hong Kong and the Hong Kong station project, which we see as a major
focus for development in the 21st century,'' said Isadore Sharp, Chairman
and Chief Executive Officer. ``We are delighted to be able to partner the
Four Seasons brand with this prestigious project, one of Hong Kong's most
significant developments in years.''
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