Shareholder Cascade Becomes Four Seasons’ Controlling Owner in $2B Deal

Leading luxury hospitality company Four Seasons Hotels and Resorts announced this week that its long standing shareholder, an affiliate of Microsoft founder Bill Gates’ Cascade Investment, L.L.C., has entered into a definitive agreement to acquire a controlling interest in the hospitality company.

In the all-cash deal, Cascade will increase its existing 47.5 percent stake to 71.25 percent by purchasing half of the existing 47.5 percent stake owned by an affiliate of its long-term investment partner Kingdom Holding Company for $2.21 billion, valuing Four Seasons at a $10 billion enterprise value.

Four Seasons currently manages 121 hotels and resorts and has more than 50 projects in its development pipeline, reported Skift.

Skift’s hospitality reporter Cameron Sperance said, “this is good news for those who like what Bill Gates as a partial owner has done to help Four Seasons grow in recent years. But there is still a lot of uncertainty around when the market will be back to the kind of conditions that help put heads in beds in one of these glitzy hotels.”

Four Seasons Founder and Chairman, Isadore Sharp, through Triples Holdings Limited will retain his 5 percent stake.

Cascade’s increased investment reflects its strong belief and excitement for Four Seasons iconic brand. Along with its long-standing investment partners, Cascade reaffirms its support for the vision and unique culture that will further distinguish Four Seasons as one of the world’s leading luxury companies.

The transaction marks a pivotal point in the evolution of Four Seasons, strengthening Cascade’s commitment to provide the company with resources to accelerate growth and expand its strategic goals. Cascade first invested in Four Seasons in 1997 when the Company was. 

“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 capitalize on growing opportunities to serve luxury consumers worldwide.”