Bill Gates’ Cascade taking over Four Seasons Hotels & Resorts

Deal values hotel chain at $10 billion on enterprise basis

National /
Sep.September 08, 2021 01:00 PM
Bill Gate and the Four Seasons in Beverly Hills (Getty)

Bill Gate and the Four Seasons in Beverly Hills (Getty)

Bill Gates’ Cascade Investment is taking a swing in the hotel industry, paying more than $2 billion to take control of Four Seasons Hotels & Resorts.

Cascade is planning to buy 23.8 percent of a stake belonging to Saudi Arabian Prince Alwaleed bin Talal, spending $2.2 billion, according to Reuters. The purchase will give Cascade a 71.3 percent stake and operating control of Four Seasons.

Prince Alwaleed is hanging on to his remaining stake. The purchase values the hotel chain at about $10 billion on an enterprise basis.

Gates is taking a risk in a hotel market that has been struggling throughout the pandemic, despite showing some signs of life more recently. The market in New York City is in the midst of a depression as occupancy rates hover well below typical summer numbers. A CBRE study estimated that the market wouldn’t recover until 2025.

Yet Cascade has shown a willingness to spend big during the pandemic. Last October, Cascade formed a partnership with Singapore sovereign wealth fund GIC for stakes in Storage Mart, a deal valued at about $2.7 billion.

While specializing in hotels and resorts, Four Seasons has expanded to residential rentals as well. The company has more than 100 hotels and resorts around the world. The company doesn’t typically own its properties, instead operating them on behalf of developers.

Four Seasons was founded in 1960 by Isadore Sharp, who will be retaining a five percent stake in the company, according to a press release on the pending sale. Four Seasons went public in 1997, when Cascade first invested in the business. The sale is expected to close in January 2022.

[Reuters] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Carpenter & Company's Richard Friedman and 2 Canal Street in New Orleans (Carpenter & Company, Google Maps)
    New Orleans Four Seasons lands $315M loan from Madison Realty Capital
    New Orleans Four Seasons lands $315M loan from Madison Realty Capital
    HUBB’s John McCarthy, Greystone's Thomas Ryan and 223-225 4th Avenue (Google Maps, Greystone, Getty)
    HUBB NYC continues 421a spending spree, buying Park Slope building
    HUBB NYC continues 421a spending spree, buying Park Slope building
    120 East 39th Street (Hotels, Getty)
    Short-term rental company taking over Midtown hotel
    Short-term rental company taking over Midtown hotel
    One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    From left: Landlord Steve Croman and White Horse Tavern owner Eytan Sugarman along with the White Horse Tavern at 567 Hudson Street (Getty Images, Google Maps, Instagram/boyfromnewyorkcity)
    Croman sues White Horse Tavern owner for $650K back rent
    Croman sues White Horse Tavern owner for $650K back rent
    Blackstone's Stephen Schwarzman and 8 Spruce Street (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Twitter/AAsArchitecture)
    Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
    Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
    A photo illustration of Tishman Speyer CEO Rob Speyer and 28-10 Jackson Avenue in Long Island City (Getty Images, Tishman Speyer, Google Maps)
    LIC tenant claims Tishman Speyer violated rent stabilization
    LIC tenant claims Tishman Speyer violated rent stabilization
    A photo illustration of Nir Meir (Getty Images)
    HFZ investor wants Nir Meir held in contempt
    HFZ investor wants Nir Meir held in contempt
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...