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
    From left: Värde Partners’ IIfryn Carstairs and Hawkins Way Capital’s Ross Walker along with 525 Lexington (Getty, Värde Partners, Hawkins Way Capital, Google Maps)
    Hawkins Way, Värde buy defunct Marriott East Side hotel
    Hawkins Way, Värde buy defunct Marriott East Side hotel
    From left: Ace Hotel’s Brad Wilson and Omnia Group's David Paz along with 225 Bowery (Getty, Google Maps, Ace hotel, Omnia Group)
    Bowery micro-hotel files for bankruptcy
    Bowery micro-hotel files for bankruptcy
    The Empire State Building, GM Building, Zhang Xin and Boston Property's Owen Thomas
    NYC’s most valuable building, and other nuggets from the tax roll
    NYC’s most valuable building, and other nuggets from the tax roll
    Seth Weissman, John Catsimatidis, Mayor Eric Adams
    They said what now? Real estate quotes of the week
    They said what now? Real estate quotes of the week
    From left: Robert Reffkin and Rupert Murdoch (Getty, Compass)
    ChatGPT didn’t write this week’s real estate news roundup, we promise
    ChatGPT didn’t write this week’s real estate news roundup, we promise
    Starwood's Barry Sternlicht
    Starwood wheels and deals to fix $800M loan default
    Starwood wheels and deals to fix $800M loan default
    Seth Weissman, Financing
    Urban Standard wants to rescue property owners from high interest rates
    Urban Standard wants to rescue property owners from high interest rates
    From left: Michael Dell with 25 Water Street, Alex Sapir with 261 Madison Avenue and Marc Holiday with One Madison Avenue (Getty, Edge Funds, Sapir Organization, SL Green)
    Office properties (yes, office!) got Manhattan’s biggest December loans
    Office properties (yes, office!) got Manhattan’s biggest December loans
    arrow_forward_ios

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

    Loading...