The transaction is being was concluded on the basis of an enterprise value for Four Seasons Hotels and Resorts of USD$10 Billion
4th January, 2022
Kingdom Holding Company (“KHC”) announced today that an affiliate of KHC has concluded its sale of a 23.75% interest in Four Seasons Hotels and Resorts (“Four Seasons”) to an affiliate of Cascade Investment L.L.C., its long-term investment partner in Four Seasons.
The transaction was concluded on the basis of an enterprise value for Four Seasons of US$10 Billion with cash proceeds to KHC of US$2.21 Billion. KHC is expected to report a gain from the transaction of approximately US$1.57 Billion. Completion followed the receipt of all applicable regulatory approvals and the satisfaction of other customary closing conditions.
As a result of the transaction, an affiliate of KHC will continue to own a 23.75% stake in Four Seasons and will remain strongly committed to the company and its considerable growth opportunities through its ongoing representation on the Board of Directors, and its ownership of Four Seasons-branded luxury properties.
KHC’s involvement with Four Seasons dates from 1994 when KHC identified Four Seasons as a possible global leader in the luxury hotel management sector. At that time, an affiliate of KHC acquired a strategic minority interest in Four Seasons via a partial public take-over bid. The investment was a ‘win-win’, with KHC assisting Four Seasons’ strategic growth plans by acquiring and developing numerous international luxury hotels for the Four Seasons brand, including the flagship George V Hotel in Paris.
Since 2007, Four Seasons has been owned privately by an affiliate of KHC, an affiliate of Cascade Investment, L.L.C., a private investment entity that holds the assets of Bill Gates, and Mr. Isadore Sharp, the founder of Four Seasons. With the support of its shareholders, Four Seasons has indeed become the leading luxury hospitality group, operating 121 hotels and resorts and 46 residential properties in 47 countries and with over 40,000 employees.
Avington Financial Limited acted as exclusive financial advisor and Hogan Lovells as legal advisor to Kingdom Holding Company in connection with the transaction.
Media Enquires: media@kingdom.com.sa
About Kingdom Holding Company
Kingdom Holding Company is one of the world’s most successful diversified companies and is internationally renowned for its investments in both high performance global companies and strategic regional interests. Founded in 1980 and based in Riyadh, Saudi Arabia, KHC has achieved almost four decades of exceptional investment success and is renowned for its diversified portfolio of global powerhouse brands and high performance local regional investments. KHC was incorporated as a publicly listed company in 2007.
Known as one of the largest investment firms in the world, KHC’s disciplined approach spans the globe and includes leading market segments such as ride sharing, e-commerce, digital services and social media (Lyft, Uber, Careem, JD.com, Twitter, Deezer), banking and financial services (Citigroup, Saudi Fransi Bank).
KHC is also a global leader in luxury hotels and hotel management, with ownership and significant interests in marquee properties such as the George V in Paris and the Savoy Hotel in London and managing The Plaza in New York via Fairmont. KHC’s global hotel brands include the Four Seasons, and the Accor Group (Fairmont, Raffles, Movenpick, Swissotel, and Sofitel).
In Saudi Arabia, KHC’s real estate interests include the famed Kingdom Tower in Riyadh and Jeddah Economic City owner of the highly anticipated Jeddah Tower that, once completed, will be the tallest tower in the world with a height exceeding 1000 meters, Kingdom oasis and the east of Riyadh land.
KHC also has investments in petrochemicals (Tasnee NIC), education (Kingdom Schools), health care (Kingdom Hospital), aviation (NAS Saudi Arabia), private equity (CDC Sovereign Wealth Fund of France) ،In addition to many different investments in multiple domains.
HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, Chairman of Kingdom Holding Company (KHC) said that “Paris’s Four Seasons Hotel George V that is 100% owned by KHC is the best & most prestigious in the world” as it was awarded the ‘Best Hotel in Europe’ in the 2014 US magazine Celebrated Living.
The George V’s luxurious and elegant interior and architectural design has made it unique. The décor is a combination of classical designs with a modern touch. The hotel’s interiors are adorned with magnificent tapestries and spectacular flowers. The hotel houses the famous Le Cinq restaurant that provides guests with an exceptional experience.
Prince Alwaleed acquired the George V in 1996 for $178 million. A two-year $125 million comprehensive renovation was started in 1997. The total cost of acquiring the hotel and renovation amounted to $303 million, reflecting the Prince’s dedication to restore the glory of this landmark.
Since its reopening in 1999, the Four Seasons George V has become internationally-renowned for its top notch services. When the hotel reopened Prince Alwaleed commented saying, “I am confident that the George V with its new look will be the crown jewel of hotels in the world. Great efforts have been exerted to offer the best luxury services. I am sure that guests of the George V will experience unparalleled service.”
The George V has received numerous recognitions: it was awarded the ‘Best Overseas Business Hotel in France’ in Conde Nast Traveller and the ‘Best European City Hotel’ in the 2013 Gallivanter’s Guide for 11 consecutive years, in 2013, Four Seasons George V was awarded the ‘Best Hotel In-Room Dining’ by The SAVEUR Culinary Travel Awards. In 2012, the hotel was awarded the best business hotel in Western Europe in the Business Traveller Magazine by The Business Traveller Award, 2012 for three consecutive years. George V, Paris was also recognized as one of the best companies in the digital world in 2012 by Fondazione Altagamma Digital Luxury Index. In 2011, George V was awarded the Palace rating by The French tourism authorities. In 2010, the George V was ranked ‘Best City Hotel Worldwide’ in Ultratravel magazine, it was also ranked Best International Business Hotel by Conde Nast Traveler in 2006, “When it comes to catering for business travelers, hotels are finding that convenience and flexibility count as much as luxury. Paris’s Four Seasons Hotel George V… will send a representative to greet you at the plane and expedite your way through customs,” described the survey.
Furthermore, George V was ranked Best City Hotel Worldwide for 8 consecutive years, and ranked Best European City Hotel for 10 consecutive years in Gallivanter’s Guide, the hotel was also ranked the World’s Best International City Hotel in Andrew Harper’s Hideaway report 2008 and Best International City Hotel in Andrew Harper’s Hideaway report in 2005. The George V has also been rated the world’s number one hotel by the ZAGAT Survey in its 2004 Top International Hotels, Resorts & Spas edition. The Survey described George V as a “jewel in the Four Season’s crown” The hotel was also ranked World’s Best Hotel in the same year, in the Institutional Investor. In 2002, L’hôtellerie magazine published a report entitled: “Four Seasons George V Hotel Best Luxurious Hotel in the World in 2002-2003.”
Founded in 1980, KHC is a publicly traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. KHC is one of the world’s most successful and diversified business organizations, highly respected in the field of investments and recognized as an elite player in the Arabian Gulf region, and internationally. The Company is recognized as one of the largest foreign investors in the United States. KHC’s portfolio has its major interests in investment categories ranging from luxury hotels management hotel companies (Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Mövenpick Hotels, Resorts AG and Swissotel) and real estate (Kingdom Tower project in Jeddah and Kingdom Tower and project in Riyadh and Kingdom City) to hotel real estate investments such as (The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel, Paris and other hotels). KHC also has investments in Petrochemical (Tasnee) Media and Publishing (News Corporation, 21st Century Fox and Saudi Research and Marketing Group), as well as in Entertainment (Euro Disney S.C.A). In addition, Finance and Investment services (Citigroup), Social Media and Technology (Twitter and Jingdong). Moreover, the Company has investments in Education (Kingdom Schools), Health Care (Kingdom Hospital and Consulting Clinics), Aviation (NAS Saudi Arabia) and Agriculture (Kingdom Agricultural Development Company – KADCO Egypt).