CARLSBAD, Calif., April 20, 2010 -- On May 8, 2009, BRCP HEF Hotel Tenant LLC, the owner of the Four Seasons Resort Aviara in Carlsbad, California, issued a press release that it was replacing Four Seasons Hotels Limited as the operator of the Aviara Resort because of alleged financial mismanagement and breach of fiduciary duties.

Four Seasons disputed these claims and, pending the outcome of arbitration with BRCP has remained as the operator of the Aviara Resort.

In accordance with the Hotel Management Agreement that governs the parties' relationship, the parties submitted their dispute to a duly constituted arbitration panel.

The arbitration panel found that Four Seasons did not breach the Management Agreement or its fiduciary duties to BRCP.

The Panel determined, however, that both parties contributed to the demise of the business relationship between the parties and that the Hotel Management Agreement should be terminated and a transition implemented in accordance with a transition plan between the parties.

As an express condition of the termination ordered by that majority of the panel, BRCP has paid to Four Seasons the compensation ordered by the panel majority for the termination of the Hotel Management Agreement.

The arbitral decision and award is otherwise confidential and non-public and BRCP and Four Seasons therefore will not comment further.