Four Seasons Hotel Inc.

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International Guild of Hospitality & Restaurant Managers

Four Seasons Hotel Inc. (FS)

Four Seasons Hotels Inc., incorporated on January 6, 1978, manages 54 luxury hotel and resort properties and two Residence Clubs containing approximately 15,184 guest rooms and fractional units. These properties are operated primarily under the Four Seasons and Regent brand names, in principal cities and resort destinations in 25 countries in North America, Europe, Asia, the Middle East, Australia, the Caribbean and South America. In addition, 24 hotel and resort properties to be operated under the Four Seasons brand name are under construction or development in a further nine countries around the world. Thirteen of these new hotels and resorts include a Residence Club or other residential component. The Company's goal is to offer business and leisure travelers the finest accommodation in each destination it serves.

Four Seasons makes investments in, or loans in respect of or to, properties where it is necessary to obtain new management agreements or improve existing management agreements, and where the overall economic return to Four Seasons justifies the investment. The Company generally seeks to limit its total long-term capital exposure to no more than 20% of the total equity required for a property, and typically can choose to have its ownership interest diluted if additional capital is required. The Company structures its ownership interests separately from its management interests so as to enable it to dispose of ownership interests as sale opportunities arise, without affecting its management interests.

In order to further capitalize on the value of the Four Seasons brand, the Company licenses and manages luxury interval and fractional ownership projects known as Four Seasons Resort Clubs or Four Seasons Residence Clubs and other Four Seasons branded residential projects. The Company receives fees for the use of the Four Seasons brand in connection with the sale of the interests in these projects, and for services provided in the oversight of the sales and marketing activities. In addition, the Company receives fees from the owners of the interests for services provided in the ongoing management of these projects. In 1996, the Company entered into an agreement with the Carlson Hospitality Group of Minneapolis (Carlson). Pursuant to the arrangement, Carlson is licensing the Regent brand, and the Company receives a share of the licensing revenue generated by Carlson. Under the agreement, Four Seasons continues to manage nine Regent hotels.

Management agreements for the hotels and resorts managed by the Company generally are long-term. These agreements entitle Four Seasons to earn base fees, as well as a range of fees for pre-opening development, purchasing, marketing, advertising and reservation services. The Company has the ability to participate in the profits of the hotels and resorts under its management through incentive fees. These incentive fees are generally based on the defined operating profits of the hotel or resort. In 2001, Four Seasons received incentive fees from 35 of the hotels and resorts under management as compared to 36 in 2000.

Hotels managed by Four Seasons are located in major international financial centers, such as London, New York, Paris, Chicago, Washington, Los Angeles, Tokyo, Milan, Singapore, Hong Kong, Toronto and Sydney, as well as in emerging international markets, such as Berlin, Dublin and Mexico City. In addition, Four Seasons manages resorts in world-class destinations, such as California, Hawaii, Nevis, Mexico and Bali, and has Residence Clubs in active sales and operation in California and Arizona.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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