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
    270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
    Legendary Hampton Bays bar up for sale
    Legendary Hampton Bays bar up for sale
    Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Just-sold Shelter Island hotel borrows $17M for transformation
    Just-sold Shelter Island hotel borrows $17M for transformation
    Just-sold Shelter Island hotel borrows $17M for transformation
    Ty Warner and Four Seasons 57 East 57th Street (Getty, Google Maps)
    Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
    Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
    Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
    Two Upper East Side apartment buildings head to foreclosure sale
    Two Upper East Side apartment buildings head to foreclosure sale
    Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    arrow_forward_ios

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

    Loading...