Bill Gates bought himself Four Seasons for $2 billion
Over the past year and a half, the sector that has been most affected by the global pandemic crisis is definitely tourism. [...]
Over the past year and a half, the sector most affected by the crisis global pandemic is definitely the one tourist.
In this article:
Between aircraft put to land, cruises stopped at ports, hotels closed, impassable borders and restrictions of all kinds, the tourism sector has definitely taken a beating and is struggling to recover.
Yet there are those who strongly believe in the restart, investing heavily in one of the world's most famous and prestigious hotellerie brands, viz. Four Seasons. It is about the American tycoon Bill Gates which secured a majority stake and consequently control of the Canadian giant.
Technically it was already partly his since 2007
What few people know is that in reality Four Seasons was already owned by Bill Gates, or at least in part. After a long rise in the hotel industry, Four Seasons had to halt its run following the crisis of the 2000s (the September 11 attack caused the tourist market to collapse as well).
Did you get your flight cancelled, miss your connection, land late?
You could get up to 600€ compensation per person
Four Seasons floundered for the next few years, refusing to reduce its room rates to maintain the level high of its services, up to the 2007 when it was forced to accept a "buyout" (i.e., a sale of most of the shares to investors to make up for losses).
The two investors who came forward were just. Bill Gates and the Saudi prince Al-Waleed bin Talal who together bought the 95% of the company for $3.8 billion, dividing it equally, while the remaining 5% remained in the hands of its founder's family, viz. Sharp.
Bill Gates: All-in on Four Seasons
The two billionaires' companies (the Cascade Investments, owned by Gates, and the Kingdom Holdings, owned by the prince Saudi Arabia) both held the 47,5% Of Four Seasons shares.
According to the latest news, Cascade Investments has come forward to buy 23.75% of its shares from Kingdom Holdings, bringing them to a total of 71,5%, thus becoming the majority shareholder and thus holding the check of the company; however, the 5% remains in Sharp's hands.
The cost of this operation is 2.2 billion dollars payable by January 2022. Bill Gates is therefore betting on luxury hotels and the recovery of tourism, despite the fact that the industry has lost $1.3 trillion globally.
Four Seasons manages 121 structures around the world, divided between hotels, resorts and 46 private residences spread across 47 countries, and has expansionist aims by announcing new openings every year.
In Italy there are. 3 hotels of the famous chain, one in Milan, one in Florence and one in the Mediterranean pearl Taormina, called San Domenico Palace.
"As we celebrate our 60th anniversary, we look to the future with tremendous enthusiasm and confidence for the industry.
Unwavering support and partnership with our shareholders have and continue to be critical to capitalizing on growing opportunities and serving luxury consumers worldwide.
Our company is at another key moment in its history, and the trust of our shareholders helps us position our iconic brand."
John Davison, CEO of Four Seasons
One more piece for one of the richest men in the world, with a personal wealth of more than 130 billion of dollars.
