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Four Seasons Hotels Settles With Seattle Hotel Owner |
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TORONTO, July 3 - Four Seasons Hotels Inc. (TSX Symbol "FSH"; NYSE
Symbol "FS") announced today that it and the owner of Four Seasons Olympic
Hotel Seattle have settled their disagreement, which was subject to
arbitration, concerning the management of the hotel. |
Under the settlement, Four Seasons will conclude its management of Four Seasons Olympic Hotel upon sale of the hotel, which is expected to occur on or about July 31, 2003. On closing of the sale of the hotel, Four Seasons will receive an initial payment, which includes its share of the sale proceeds. Four Seasons will also receive annual payments over the next several years which are not materially different from the fees that the Company would have otherwise earned during this period. The Company believes the payments under the settlement agreement will, in aggregate, compensate it for the near-term value of its management contract as it works to obtain a new management opportunity in Seattle.
Other specific terms of the agreement are confidential.
"Four Seasons Olympic Hotel Seattle was part of the Company's initial expansion in the U.S.," said Isadore Sharp, Chairman and Chief Executive Officer, Four Seasons Hotels and Resorts. "We have enjoyed being part of this vibrant community ever since, as the hotel and its employees earned a national and international reputation for excellence. We believe that a fair and equitable settlement has been reached and look forward to finding a new opportunity in Seattle for the Four Seasons brand."
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