| TORONTO - Dec. 22, 1999-- Four Seasons Hotels Inc. announced today
that it has sold its majority ownership interest in the Four Seasons Resort
Scottsdale at Troon North to Walton Street Capital (Chicago, Illinois)
on behalf of Walton Street Real Estate Fund III, L.P. The purchase price
and other terms and conditions of the sale were not disclosed. The proceeds
generated from the sale will be used for general working capital purposes.
In keeping with its strategic focus on hotel management, Four Seasons will
continue to manage the Four Seasons Resort Scottsdale at Troon North under
a long-term management agreement, and will continue to hold a minority
interest in the property.
 �Four
Seasons Resort, Scottsdale is an important addition to our resort portfolio�
said Kathleen Taylor, President and Chief Corporate Officer. �By bringing
a new majority equity partner into this project, we have achieved our objective
of holding a minority financial interest in hotels under our management,
while maintaining our focus on expanding Four Seasons� long-term management
business.�
Four Seasons also announced that it recently finalized the terms of
an amended lease agreement and related guarantee with respect to the Four
Seasons Hotel Berlin. The terms of the amended agreement are substantially
the same as the original terms, except that under the amended lease agreement
and guarantee, Four Seasons� guarantee obligations with respect to the
minimum rent amounts may not, without the consent of Four Seasons, exceed
DM21 million in the aggregate during the term of the lease. The lease
has an initial term of 20 years commencing January 1, 1999, and ten renewal
terms of five years each exercisable at Four Seasons� option, provided
that all lease obligations (including the payment of minimum rent) are
satisfied. In addition, disputes with the landlord relating to certain
construction deficiencies have now been settled, and a fund of DM2.9 million
has been set aside by the landlord to rectify the deficiencies. �The
amended lease on the Berlin hotel allows us to resolve the construction
deficiencies relating to the hotel and to significantly reduce Four Seasons�
contingent financial obligations under this lease agreement,� commented
Douglas L. Ludwig, Executive Vice President and Chief Financial Officer.
�This revised financial commitment is more consistent with our strategy
of making limited financial commitments where required to enhance our long-term
management business.�
Four Seasons also announced that it has exercised its option to renew
its lease agreements with respect to The Pierre in New York for a term
of ten years commencing February 1, 2002. �The Pierre lease was renewed
on the same financial terms that have been in place throughout the initial
20 year lease term. With the strong demand growth that the New York luxury
hotel market has enjoyed during the past 10 years, we are pleased to renew
the lease for this important asset,� Isadore Sharp, Chairman and Chief
Executive Officer said.
Four Seasons Hotels and Resorts is the world�s leading operator of luxury
hotels and currently manages 47 properties in 19 countries, primarily under
the Four Seasons and Regent brand names. December 1999 marked the opening
of Four Seasons Hotel Canary Wharf, in London; Four Seasons Hotel George
V, Paris; and Four Seasons Resort Scottsdale at Troon North. A vacation
ownership development at the Scottsdale property will open in March 2000.
These hotels join the Company�s other new 1999 properties: Four Seasons
Resort Punta Mita, Mexico, with a vacation ownership development opening
in 2001, and Four Seasons Hotel Las Vegas, the only AAA Five Diamond hotel
in Nevada. Four Seasons Hotels Inc. is traded on the New York Stock Exchange
under the ticker symbol �FS.� Information on the company can be accessed
through Four Seasons web site at www.fourseasons.com. |
