Press Release
August 3, 2000
TORONTO -- Four Seasons Hotels Inc. (TSE:FSH; NYSE:FS) yesterday reported its results for the second quarter ended
June 30, 2000. Net earnings increased 22.1% to $27.1 million ($0.78 basic earnings per share) for the three months
ended June 30, 2000, as compared to $22.2 million ($0.64 basic earnings per share) for the second quarter of 1999.
For the six months ended June 30, 2000, net earnings increased 28.7% to $41.5 million ($1.20 basic earnings per
share), as compared to $32.2 million ($0.94 basic earnings per share) for the comparable period in 1999.
``The second quarter results reflect continued strong performance by virtually all of the hotels under our management.
The new hotels and resorts in Las Vegas, Punta Mita, Scottsdale, Canary Wharf and Paris, which we opened last year,
and Cairo, which opened during this quarter, have each been very well received by our customers and are quickly
reaching leadership positions in their respective markets,'' said Isadore Sharp, Chairman and Chief Executive Officer.
STRONG INCREASE IN MANAGEMENT EARNINGS
Total revenues of all hotels under management increased 22% to $724 million for the quarter ended June 30, 2000,
as compared to the second quarter of 1999. Total revenues of all managed hotels increased 19.9% to $1.4 billion
for the six months ended June 30, 2000, as compared to $1.1 billion for the comparable period in 1999. Management
fee revenues increased 34.2% to $47.5 million for the quarter ended June 30, 2000, and 27% to $86.7 million for
the six months ended June 30, 2000, as compared to the comparable periods in 1999.
Four Seasons management earnings before other operating items for the second quarter of 2000 increased 47.5% to
$31.9 million, as compared to $21.6 million in the second quarter of 1999. Management earnings before other operating
items for the six months ended June 30, 2000, were $56.7 million, a 39.2% increase, as compared to $40.7 million
for the same period in 1999.
The growth in management earnings is attributable to a solid operating performance of the Company's Core Hotels
[1] resulting in a significant improvement in incentive fees and to increases in management fees in recently opened
properties. Royalty fees from the Four Seasons residence club projects in Aviara, California and Scottsdale, Arizona
also contributed to management fee revenue growth in the quarter.
General and administrative expenses increased approximately 13.3% in the second quarter of 2000, as compared to
the same period in 1999. The largest component of these increased costs related to additional costs in the Company's
residence club division. The profit margin of the Company's management business for the quarter ended June 30,
2000 was 67.2%, as compared to 61.2% for the same period in 1999, and 65.5% for the six months ended June 30, 2000,
as compared to 59.7% for the same period in 1999.
OPERATING IMPROVEMENTS
The US Core Hotels continued their solid operating performance in the second quarter of 2000, with improvements
in RevPAR [2], on a US$ basis, of 13.3% and strong improvements in gross operating profits of 16.6%. For the first
six months of the year, RevPAR of US Core Hotels, on a US$ basis, increased 12.4% and gross operating profits increased
18.0%, as compared to the same period in 1999.
In the second quarter of 2000, Other North American Core Hotels [3] realized improvements in RevPAR, on a US$ basis,
of 5.4%, and in gross operating profits of 11.9%. For the first six months of 2000, Other North American Core Hotels
experienced an increase in RevPAR, on a US$ basis, of 4.3%, and a 9.4% increase in gross operating profits, as
compared to the same period in 1999.
Despite the weakening of the Euro during the second quarter, the European Core Hotels experienced an increase in
RevPAR of 8.0%, on a US$ basis, for the second quarter of 2000 and a 16.9% increase in gross operating profits,
as compared to the same period in 1999. For the six months ended June 30, 2000, RevPAR of the European Core Hotels,
on a US$ basis, increased 9.6% and gross operating profits increased 22.8%, as compared to the same period in 1999.
For the second quarter of 2000, RevPAR in the Asian Core Hotels, on a US$ basis, increased 15.8% and gross operating
profits increased 39.1%, as compared to the second quarter of 1999. For the first six months of 2000, RevPAR for
the Asian Core Hotels, on a US$ basis, increased 14.9% and gross operating profits increased 33.9%, as compared
to the same period in 1999.
OWNERSHIP OPERATIONS
Ownership earnings before other operating items were $3.7 million in the second quarter of 2000, as compared to
$743,000 in the second quarter of 1999. This reflects strong operating results at The Pierre hotel in New York
and improved results at the Four Seasons Hotel Vancouver.
Although The Regent Hong Kong had sufficient operating earnings and cash reserves, the majority owner of that hotel
did not declare a dividend for the second quarter of 2000. As such, no dividend was accrued by the Company from
that hotel for the quarter. By comparison, the 1999 second quarter dividend from The Regent Hong Kong was $752,000.
Ownership earnings before other operating items for the first six months of 2000 were $1.6 million, as compared
to a loss of $4.1 million for the comparable period in 1999. In the third quarter of 2000, ownership earnings will
be negatively affected by the hotel strike in Vancouver, which began July 1 and ended July 29, and affected a number
of hotels in that market, including the Four Seasons Hotel Vancouver.
LOWER NET INTEREST COSTS
Net interest income for the quarter ended June 30, 2000 was $765,000, as compared to net interest expense of $515,000
for the same period in 1999. For the six months ended June 30, 2000, net interest income was $1.5 million, as compared
to net interest expense of $1.6 million for the same period in 1999. These improvements in net interest are the
result of increased interest income from cash deposits and investments made in notes receivable in connection with
certain new projects.
INCOME TAXES
The Company's effective tax rate during the second quarter and six months ended June 30, 2000 was approximately
25%, as compared to approximately 2.5% and 3.2% for the respective periods in 1999. Income tax expense increased
by $8.5 million in the second quarter of 2000, and $13.1 million for the six months ended June 30, 2000, as compared
to the respective periods in 1999.
The increase in the effective tax rate is due to the utilization in 1999 of the benefits of the unrecorded tax
losses created by the write-down in hotel investment values in 1993 and 1995 and the implementation of the new
Canadian income tax accounting standards (see note 1(a) to the consolidated financial statements.)
NEW UNIT GROWTH
Four Seasons is continuing to expand its international presence with several new projects. Over the past 18 months,
new Four Seasons hotels and resorts have been opened in Las Vegas, Punta Mita, Mexico, Scottsdale, Canary Wharf,
Paris and Cairo. Other Four Seasons hotels and resorts are presently preparing to open in Caracas, Dublin and Prague.
As well, the re-opening of the Four Seasons Resort Nevis is scheduled for late November of this year, and the Company
recently extended its agreement for The Regent Hotel Taipei for an additional ten years.
CONCLUSION
``Looking out through the remainder of 2000, we believe that we will continue to see solid, but more moderate operating
improvements at the hotels under Four Seasons management. We also expect continued fee growth from our residence
clubs and from new and recently opened hotels,'' said Douglas Ludwig, Executive Vice President and Chief Financial
Officer. ``Despite the significant increase in our tax costs in fiscal 2000, our industry leading RevPAR growth,
combined with strong new unit growth, has allowed us to exceed our growth target for the first half of this year.''
Four Seasons Hotels and Resorts is the world's largest operator of luxury hotels. The Company currently manages
48 hotels and resorts in 20 countries and has an additional 19 properties in an additional 12 countries under construction
or in advanced stages of development.
All dollar amounts referred to in this press release are Canadian dollars unless otherwise noted.
Certain statements contained in this press release that do not relate to historical information are ``forward-looking
statements'' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and are thus
prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could
cause actual results to differ materially from future results expressed, projected or implied by such forward-looking
statements. Such factors include, but are not limited to, economic, competitive and lodging industry conditions.
These factors are discussed in greater detail in the Company's filings with the Canadian and United States securities
regulators. The Company disclaims any responsibility to update any such forward-looking statements.
1 The term ``Core Hotels'' means hotels and resorts under management or anticipated to be under management for
the full year of both 2000 and 1999. Changes from the 1999/1998 Core Hotels are the additions of the Four Seasons
Hotel Berlin, the Four Seasons Resort Kuda Huraa and the Four Seasons Resort Bali at Sayan.
2 RevPAR is defined as average room revenue per available room. RevPAR is a commonly used indicator of market performance
for hotels and represents the combination of average daily room rate and the average occupancy rate achieved during
the period. RevPAR does not include food and beverage or other ancillary revenues generated by a hotel.
3 Segment consisting of Canada, Mexico and the Carribean.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Six months ended
June 30, June 30,
(unaudited) ($000's) 2000 1999 2000 1999
---------------------------------------------------------------------
Consolidated revenues
(note 2) $ 90,636 $ 68,637 $ 162,630 $ 125,775
-------------------------------------------------
-------------------------------------------------
MANAGEMENT OPERATIONS
Revenues (note 3) $ 47,463 $ 35,374 $ 86,663 $ 68,234
General and
administrative
expenses (15,566) (13,742) (29,933) (27,494)
-------------------------------------------------
31,897 21,632 56,730 40,740
-------------------------------------------------
OWNERSHIP OPERATIONS
Revenues 45,005 33,917 76,980 58,024
Distributions from
hotel investments 386 1,166 2,525 2,378
Expenses:
Cost of sales and
expenses (39,504) (32,520) (74,414) (61,629)
Fees to Management
Operations (2,218) (1,820) (3,538) (2,861)
-------------------------------------------------
3,669 743 1,553 (4,088)
-------------------------------------------------
Earnings before other
operating items 35,566 22,375 58,283 36,652
Depreciation and
amortization (3,418) (2,988) (6,692) (5,835)
Other operating
income (expense),
net 3,156 3,847 2,580 4,051
-------------------------------------------------
Earnings from
operations 35,304 23,234 54,171 34,868
Interest income
(expense), net 765 (515) 1,482 (1,588)
-------------------------------------------------
Earnings before income
taxes 36,069 22,719 55,653 33,280
Income tax expense:
Current (7,808) (440) (11,867) (811)
Future (1,209) (125) (2,046) (257)
Reduction of future
income tax
asset (note 4) - -- (282) -
-------------------------------------------------
(9,017) (565) (14,195) (1,068)
-------------------------------------------------
Net earnings $ 27,052 $ 22,154 $ 41,458 $ 32,212
-------------------------------------------------
-------------------------------------------------
Basic earnings per
share $ 0.78 $ 0.64 $ 1.20 $ 0.94
-------------------------------------------------
-------------------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED BALANCE SHEETS
As at As at
June 30, December 31,
(unaudited) ($000's) 2000 1999
---------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 208,078 $ 222,245
Receivables 71,403 60,931
Inventory 3,298 2,869
Prepaid expenses 2,353 1,754
-----------------------------
285,132 287,799
Long-term receivables 130,010 129,174
Investments in hotel partnerships and
corporations 164,667 116,010
Fixed assets 44,585 39,748
Investment in management contracts 190,557 186,025
Investment in trademarks and trade names 35,002 35,306
Future income tax asset 21,285 6,864
Other assets 31,942 31,213
-----------------------------
$ 903,180 $ 832,139
-----------------------------
-----------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 60,607 $ 57,311
Long-term debt due within one year 1,071 1,005
-----------------------------
61,678 58,316
Long-term debt 198,770 186,126
Shareholders' equity (note 5):
Capital stock 311,131 308,993
Convertible notes 178,424 178,424
Contributed surplus 4,784 4,784
Retained earnings 142,977 94,150
Equity adjustment from foreign
currency translation 5,416 1,346
-----------------------------
642,732 587,697
-----------------------------
$ 903,180 $ 832,139
-----------------------------
-----------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CASH PROVIDED BY OPERATIONS
Three months ended Six months ended
June 30, June 30,
(unaudited) ($000's) 2000 1999 2000 1999
---------------------------------------------------------------------
Cash provided by (used in) operations:
MANAGEMENT OPERATIONS
Earnings before other
operating items $ 31,897 $ 21,632 $ 56,730 $ 40,740
Items not requiring
(providing) an
outlay (inflow) of funds (839) (96) (572) 200
-------------------------------------------
Working capital provided by
Management Operations 31,058 21,536 56,158 40,940
-------------------------------------------
OWNERSHIP OPERATIONS
Earnings (loss) before other
operating items 3,669 743 1,553 (4,088)
Items not requiring an
outlay of funds 1,859 1,994 1,881 3,554
-------------------------------------------
Working capital provided
by (used in)
Ownership Operations 5,528 2,737 3,434 (534)
-------------------------------------------
36,586 24,273 59,592 40,406
Recovery of loss 3,205 3,822 3,615 4,164
Interest received 3,548 2,801 9,164 5,894
Interest paid (310) (941) (3,501) (4,985)
Current income tax paid (1,182) (440) (3,800) (811)
Change in non-cash working
capital (549) 2,785 (18,214) 2,854
Other 509 25 435 (113)
-------------------------------------------
Cash provided by
operations $ 41,807 $ 32,325 $ 47,291 $ 47,409
-------------------------------------------
-------------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended Six months ended
June 30, June 30,
(unaudited) ($000's) 2000 1999 2000 1999
---------------------------------------------------------------------
Cash provided by (used in):
Operations: $ 41,807 $ 32,325 $ 47,291 $ 47,409
--------------------------------------------
Financing:
Long-term debt, including
current portion 12 12,656 (87) 17,844
Issuance of shares 1,554 840 2,138 5,555
Dividends paid - - (1,788) (1,761)
Other 1 - (40) (450)
--------------------------------------------
Cash provided by financing 1,567 13,496 223 21,188
--------------------------------------------
Capital investments:
Long-term receivables (2,729) (35,849) (8,071) (43,563)
Hotel investments (35,631) (5,495) (39,986) (20,465)
Purchase of fixed assets (2,717) (3,716) (6,645) (8,069)
Investments in trademarks
and trade names and
management contracts (4,358) (396) (5,923) (555)
Other assets (834) (1,438) (1,823) (3,136)
--------------------------------------------
Cash used in capital
investments (46,269) (46,894) (62,448) (75,788)
--------------------------------------------
Decrease in cash (2,895) (1,073) (14,934) (7,191)
Increase (decrease) in
cash due to unrealized
foreign exchange gain
(loss) 603 (122) 767 (170)
Cash and cash equivalents,
beginning of period 210,370 11,425 222,245 17,591
--------------------------------------------
Cash and cash equivalents,
end of period $ 208,078 $ 10,230 $ 208,078 $ 10,230
--------------------------------------------
--------------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited) ($000's)
--------------------------------------------------------------------------------
1. Change in Accounting Policies:
Effective January 1, 2000, the Canadian Institute of Chartered Accountants (``CICA'') changed the accounting standards
relating to the accounting for income taxes and the accounting for future employee benefits, including pension
benefits.
a. Income Taxes
The CICA's new standard on accounting for income taxes adopts the liability method of accounting for future income
taxes. Under the liability method future income tax assets and liabilities are determined based on ``temporary
differences'' (differences between the accounting basis and the tax basis of the assets and liabilities), and are
measured using the currently enacted, or substantively enacted, tax rates and laws expected to apply when these
differences reverse. A valuation allowance is recorded against any future income tax asset if it is more likely
than not that the asset will not be realized. Income tax expense or benefit is the sum of the Company's provision
for current income taxes and the difference between the opening and ending balances of the future income tax assets
and liabilities.
Prior to adoption of this new accounting standard, income tax expense was determined using the deferral method.
Under this method, deferred income tax expense was determined based on ``timing differences'' (differences between
the accounting and tax treatment of items of expense or income), and were measured using the tax rates in effect
in the year the differences originated. Certain deferred tax assets, such as the benefit of tax losses carried
forward, were not recognized unless there was virtual certainty that they would be realized.
The Company has adopted the new income tax accounting standard retroactively, without restating the financial statements
of any prior periods. As a result, the Company has recorded an increase to retained earnings with a corresponding
increase to future income tax asset, formerly deferred income taxes, of $13,913 as at January 1, 2000.
a. Pension and Other Post-retirement Benefits
The CICA's new standard on accounting for employee future benefits, including pension benefits requires the use
of a current settlement discount rate to measure the accrued pension benefit obligation. Prior to adoption of this
new accounting standard, pension expense was determined using a long-term rate of return to measure accrued pension
benefits.
The Company has decided to adopt the new standard for pension benefits retroactively, without restating the financial
statements of any prior periods. In addition, the Company will now use the corridor method to amortize actuarial
gains or losses (such as changes in actuarial assumptions and experience gains or losses). Under the corridor method,
amortization is recorded only if the accumulated net actuarial gains or losses exceeds 10% of the greater of accrued
pension benefit obligation and the value of the plan assets. Previously, actuarial gains and losses were amortized
on a straight-line basis over the average remaining service life of the employees. As a result, the Company has
recorded a decrease to retained earnings of $4,752, an increase to accrued benefit liability of $7,476 and an increase
to future income tax asset of $2,724 as at January 1, 2000.
2. Consolidated revenues for Four Seasons Hotels Inc. are comprised of revenues from Management Operations, revenues
from Ownership Operations, distributions from hotel investments, less fees from Ownership Operations to Management
Operations.
3. Total revenues under management were $723,974 for the second quarter of 2000 ($593,271 for the second quarter
of 1999), and $1,375,336 for the first half of 2000 ($1,146,818 for the first half of 1999). Total revenues under
management consist of rooms, food and beverage, telephone and other revenues of all the hotels and resorts which
the Company manages. Approximately 61% of the fee revenues earned by the Company were calculated as a percentage
of the total revenues under management of all hotels and resorts.
4. This expense relates to the one percent reduction in the Canadian federal income tax rates announced in the
first quarter of 2000. As a result of the decrease in the income tax rates, the ongoing benefit of the Company's
future income tax asset is reduced. The $282,000 expense reflects the reduction in the ongoing benefit.
5. As at June 30, 2000, the Company has outstanding Variable Multiple Voting and Limited Voting Shares of 34,607,408
and outstanding stock options of 5,198,761. In addition, the Company has 655,519 convertible notes outstanding,
each of which may be converted into 5.284 Limited Voting Shares of the Company. The Company, however, has the right
to acquire for cash the notes that a holder has required to be so converted. Also, on or after September 23, 2004,
the Company may redeem for cash all or a portion of the notes.
SUMMARY OF HOTEL OPERATING DATA - CORE HOTELS(1)
Three months ended
June 30,
(Unaudited) 2000 1999 Variance
---------------------------------------------------------------------
Worldwide
No. of Properties 39 39 --
No. of Rooms 11,355 11,355 --
Occupancy(2) 74.6% 70.7% 3.9%
ADR(3) - in US dollars $291 $273 6.7%
- in equivalent Canadian
dollars $430 $401 7.2%
RevPAR(4) - in US dollars $217 $193 12.6%
- in equivalent
Canadian dollars $321 $284 13.1%
Gross operating margin(5) 38.8% 36.6% 2.2%
United States
No. of Properties 20 20 --
No. of Rooms 6,348 6,348 --
Occupancy(2) 79.3% 76.4% 2.9%
ADR(3) - in US dollars $345 $316 9.1%
- in equivalent
Canadian dollars $509 $465 9.6%
RevPAR(4) - in US dollars $274 $242 13.3%
- in equivalent
Canadian dollars $404 $355 13.7%
Gross operating margin(5) 39.1% 37.9% 1.2%
Canada/Mexico/Caribbean
No. of Properties 3 3 --
No. of Rooms 1,004 1,004 --
Occupancy(2) 74.3% 71.0% 3.3%
ADR(3) - in US dollars $188 $186 0.8%
- in equivalent
Canadian dollars $277 $274 1.2%
RevPAR(4) - in US dollars $139 $132 5.4%
- in equivalent
Canadian dollars $206 $195 5.8%
Gross operating margin(5) 35.8% 34.6% 1.2%
Asia/Pacific
No. of Properties 11 11 --
No. of Rooms 3,132 3,132 --
Occupancy(2) 63.0% 57.4% 5.6%
ADR(3) - in US dollars $180 $170 5.5%
- in equivalent
Canadian dollars $265 $250 5.9%
RevPAR(4) - in US dollars $113 $98 15.8%
- in equivalent
Canadian dollars $167 $144 16.3%
Gross operating margin(5) 36.1% 30.0% 6.1%
Europe
No. of Properties 5 5 --
No. of Rooms 871 871 --
Occupancy(2) 81.6% 75.7% 5.9%
ADR(3) - in US dollars $319 $318 0.2%
- in equivalent
Canadian dollars $471 $468 0.6%
RevPAR(4) - in US dollars $260 $241 8.0%
- in equivalent
Canadian dollars $384 $354 8.4%
Gross operating margin(5) 44.3% 39.8% 4.5%
--------------------------------------------------------------------------------
1 The term ``Core Hotels'' means hotels and resorts under management or anticipated to be under management for
the full year of both 2000 and 1999. Changes from the 1999/1998 Core Hotels are the additions of the Four Seasons
Hotel Berlin, the Four Seasons Resort Kuda Huraa and the Four Seasons Resort Bali at Sayan.
2 Occupancy percentage is defined as the total number of rooms occupied divided by the total number of rooms available.
3 ADR is defined as average daily room rate per room occupied.
4 RevPAR is defined as average room revenue per available room. RevPAR is a commonly used indicator of market performance
for hotels and represents the combination of the average daily room rate and the average occupancy rate achieved
during the period. RevPAR does not include food and beverage or other ancillary revenues generated by a hotel.
5 Gross operating margin represents gross operating profit as a percent of gross operating revenue.
SUMMARY OF HOTEL OPERATING DATA - CORE HOTELS(1)
Six months ended
June 30,
(Unaudited) 2000 1999 Variance
---------------------------------------------------------------------
Worldwide
No. of Properties 39 39 --
No. of Rooms 11,355 11,355 --
Occupancy(2) 72.4% 69.2% 3.2%
ADR(3) - in US dollars $286 $267 7.0%
- in equivalent
Canadian dollars $418 $398 5.3%
RevPAR(4) - in US $207 $185 12.1%
- in equivalent
Canadian dollars $303 $275 10.2%
Gross operating margin(5) 37.3% 34.9% 2.4%
United States
No. of Properties 20 20 --
No. of Rooms 6,348 6,348 --
Occupancy(2) 77.3% 75.2% 2.1%
ADR(3) - in US dollars $339 $310 9.4%
- in equivalent
Canadian dollars $496 $461 7.6%
RevPAR(4) - in US dollars $262 $233 12.4%
- in equivalent
Canadian dollars $383 $346 10.6%
Gross operating margin(5) 37.6% 36.0% 1.6%
Canada/Mexico/Caribbean
No. of Properties 3 3 --
No. of Rooms 1,004 1,004 --
Occupancy(2) 66.6% 66.0% 0.6%
ADR(3) - in US dollars $179 $173 3.4%
- in equivalent
Canadian dollars $261 $257 1.7%
RevPAR(4) - in US dollars $119 $114 4.3%
- in equivalent
Canadian dollars $174 $170 2.6%
Gross operating margin(5) 29.8% 29.7% 0.1%
Asia/Pacific
No. of Properties 11 11 --
No. of Rooms 3,132 3,132 --
Occupancy(2) 63.4% 57.9% 5.5%
ADR(3) - in US dollars $180 $172 5.0%
- in equivalent
Canadian dollars $264 $256 3.2%
RevPAR(4) - in US dollars $114 $99 14.9%
- in equivalent
Canadian dollars $167 $148 13.0%
Gross operating margin(5) 36.8% 31.7% 5.1%
Europe
No. of Properties 5 5 --
No. of Rooms 871 871 --
Occupancy(2) 75.6% 68.4% 7.2%
ADR(3) - in US dollars $312 $315 (0.9%)
- in equivalent
Canadian dollars $458 $470 (2.5%)
RevPAR(4) - in US dollars $236 $216 9.6%
- in equivalent
Canadian dollars $346 $321 7.8%
Gross Operating margin(5) 41.1% 35.9% 5.2%
--------------------------------------------------------------------------------
1 The term ``Core Hotels'' means hotels and resorts under management or anticipated to be under management for
the full year of both 2000 and 1999. Changes from the 1999/1998 Core Hotels are the additions of the Four Seasons
Hotel Berlin, the Four Seasons Resort Kuda Huraa and the Four Seasons Resort Bali at Sayan.
2 Occupancy percentage is defined as the total number of rooms occupied divided by the total number of rooms available.
3 ADR is defined as average daily room rate per room occupied.
4 RevPAR is defined as average room revenue per available room. RevPAR is a commonly used indicator of market performance
for hotels and represents the combination of the average daily room rate and the average occupancy rate achieved
during the period. RevPAR does not include food and beverage or other ancillary revenues generated by a hotel.
5 Gross operating margin represents gross operating profit as a percent of gross operating revenue.
SUMMARY OF HOTEL OPERATING DATA - ALL MANAGED HOTELS
As at
June 30,
(Unaudited) 2000 1999 Variance
---------------------------------------------------------------------
Worldwide
No. of Properties 48 43 5
No. of Rooms 14,052 13,045 1,007
United States
No. of Properties 22 21 1
No. of Rooms 6,982 6,772 210
Canada/Mexico/Caribbean
No. of Properties 5 4 1
No. of Rooms 1,340 1,200 140
Asia/Pacific
No. of Properties 14 13 1
No. of Rooms 4,475 4,202 273
Europe
No. of Properties 7 5 2
No. of Rooms 1,255 871 384
--------------------------------------------------------------------------------
Contact:
Douglas L. Ludwig
Executive Vice President and Chief Financial Officer
416/441-4320
-or-
Barbara Henderson
Vice President - Taxation and Investor Relations
416/441-4329