Press Release
November 9, 2000
TORONTO -- Four Seasons Hotels Inc. (NYSE:FS; TSE:FSH.) yesterday reported its results for the third quarter ended
September 30, 2000.
Net earnings increased 13.5 % to $23.1 million ($0.67 basic earnings per share) for the three months ended September
30, 2000, as compared to net earnings of $20.3 million ($0.60 basic earnings per share) for the third quarter of
1999.
For the nine months ended September 30, 2000, net earnings increased 22.8% to $64.6 million ($1.87 basic earnings
per share), as compared to net earnings of $52.6 million ($1.54 basic earnings per share) for the comparable period
in 1999.
As expected, the city-wide hotel strike in Vancouver in July 2000 caused a decline in ownership earnings of $2.9
million and hotel management fees of $400,000. The combined pre-tax effect of the strike was $3.3 million and the
after-tax effect was $2.5 million (approximately $0.07 basic earnings per share) for the third quarter. On a normalized
basis, excluding the impact of the strike, net earnings for the quarter ended September 30, 2000, increased 26%
as compared to the quarter ended September 30, 1999.
``Many years ago we laid down the fundamentals of the Four Seasons business model, with the objective of focusing
on our expertise in luxury hotel management and capitalizing on the value of our brand name. The benefits of this
business model continue to serve us well and are demonstrated once again in our financial results for the quarter.''
said Isadore Sharp, Chairman and Chief Executive Officer. ``We believe that additional earnings growth should come
from our hotel management business through continued strong operational performance at existing hotels and growing
contributions from recently opened hotels and from the growing number of Four Seasons branded residential projects.''
STRONG INCREASE IN MANAGEMENT EARNINGS
Total revenues of all hotels and resorts managed by Four Seasons increased 19.7% to $671.6 million for the quarter
ended September 30, 2000, as compared to $561.2 million for the same period in 1999. Total revenues of all managed
hotels and resorts increased 19.8% to $2.0 billion for the nine months ended September 30, 2000, as compared to
$1.7 billion for the comparable period in 1999. Management fee revenues increased 23.9% to $44.8 million for the
quarter ended September 30, 2000, and 25.9% to $131.5 million for the nine months ended September 30, 2000, as
compared to the comparable periods in 1999.
Four Seasons management earnings before other operating items for the third quarter of 2000 increased 30% to $29.9
million, as compared to $23.0 million in the third quarter of 1999. Management earnings before other operating
items for the nine months ended September 30, 2000 were $86.7 million, up 35.9%, as compared to $63.8 million for
the same period in 1999.
The growth in management earnings is attributable principally to management fees from recently opened properties
and the operating performance of the Company's Core Hotels(1) resulting in a significant improvement in management
and incentive fees. Another component of the growth was an increase in management and royalty fees from the Four
Seasons Residence Club projects adjacent to the Four Seasons Resort in Aviara, California and the Four Seasons
Resort, Scottsdale.
General and administrative expenses increased approximately 13.2% for the third quarter of 2000, as compared to
the same period in 1999. This increase in costs is primarily related to additional staffing and related costs associated
with the expansion of the Company's Residence Clubs. The profit margin on the management business was 66.8% for
the third quarter of 2000, as compared to a 63.6% margin for the same period in 1999. For the nine months ended
September 30, 2000, the profit margin on the management business was 65.9%, as compared to 61.1% for the same period
in 1999.
OPERATING IMPROVEMENTS
The US Core Hotels continued their solid operating performance in the third quarter of 2000, with an improvement
in RevPAR(2), on a US dollar basis, of 10.8% and a strong improvement in gross operating profits of 12.6%, as compared
to the third quarter of 1999. For the first nine months of the year, RevPAR of US Core Hotels, on a US dollar basis,
increased 11.9%, while gross operating profits increased 16.2%, as compared to the same period in 1999.
In the third quarter of 2000, Other North American Core Hotels(3) realized a decline in RevPAR, on a US dollar
basis, of 5.4% and in gross operating profits of 14.9%, as compared to the third quarter of 1999. The decline in
RevPAR and gross operating profits is attributable to 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. For the first
nine months of 2000, RevPAR of Other North American Core Hotels was essentially flat, on a US dollar basis, and
gross operating profits declined approximately 2.0%, as compared to the same period in 1999.
The strong operational performance of the European Core Hotels was offset by the translation of results from the
Euro to US dollars. The European Core Hotels experienced an increase in RevPAR, on a US dollar basis, of 1.9% for
the third quarter of 2000 and a 6.9% increase for the first nine months of 2000, as compared to the same periods
in 1999. Gross operating profits of the European Core Hotels increased 5.2% for the third quarter of 2000 and 16.6%
for the first nine months of 2000, as compared to the same periods in 1999. On a Euro basis, the European Core
Hotels experienced an increase in RevPAR of 18.4% for the third quarter of 2000 and a 22.1% increase for the first
nine months of 2000, as compared to the same periods in 1999. On a Euro basis, gross operating profits of the European
Core Hotels increased 22.5% for the third quarter of 2000 and 33.0% for the first nine months of 2000, as compared
to the same periods in 1999.
During the third quarter of 2000, RevPAR in the Company's Asian Core Hotels, on a US dollar basis, increased 13.2%
while gross operating profits increased 18.8%, as compared to the third quarter of 1999. This reflects an improvement
in each of the markets in that region over the comparable period. For the first nine months of 2000, RevPAR, on
a US dollar basis, for the Asian Core Hotels increased 14.3% and gross operating profits increased 29.0%, as compared
to the same period in 1999.
OWNERSHIP OPERATIONS
Ownership earnings before other operating items were $3.4 million in the third quarter of 2000, as compared to
$958,000 in the third quarter of 1999. This reflects strong operating results at The Pierre hotel in New York and
The Regent Hong Kong, offset by the reduction in earnings at the Four Seasons Vancouver as a result of the hotel
strike. The impact of the strike was a reduction in ownership earnings of approximately $2.9 million.
Ownership earnings before other operating items for the first nine months of 2000 were $5.0 million, as compared
to a loss of $3.1 million for the comparable period in 1999.
NET INTEREST INCOME
The Company had net interest income of $1.2 million in the third quarter of 2000, as compared with $690,000 in
the third quarter of 1999. For the nine months ended September 30, 2000, net interest income was $2.7 million,
as compared to net interest expense of $898,000 for the comparable period of 1999. These increases are the result
of increased interest income from cash deposits and investments made in notes receivable in certain new projects.
INCOME TAX EXPENSE
The Company's effective tax rate during the third quarter of 2000 and for the nine months ended September 30, 2000
was approximately 25%, as compared to 2.4% and 2.9%, respectively, for the same periods of 1999. This 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 financial statements). Income tax expense increased by $7.2 million
in the third quarter of 2000, and $20.3 million for the nine months ended September 30, 2000, as compared to the
respective periods in 1999.
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.
In addition, the Four Seasons Resort Nevis is scheduling to re-open in late November of this year.
SUMMARY
``Despite the one time increase in our income tax rate in fiscal 2000 and the strike in Vancouver during July,
we have been able to exceed our earnings growth targets.'' said Douglas L. Ludwig, Executive Vice President and
Chief Financial Officer. ``Looking out over the next eighteen months with the expected opening of many new Four
Seasons hotels and resorts and the expected continued strong operations in the majority of the markets in which
we operate, we believe that we should meet our financial targets and deliver solid financial growth.''
The Company will hold a conference call on Thursday, November 9th, 2000 at 10:00 a.m. to discuss the third quarter
financial results. The details are:
To participate, call: 1 888 740-8120
To listen to a replay, call: 1 800 558-5253 and
key in 16684291 when prompted
A live webcast will also be available by visiting http://fourseasons.com/corpinfo.
This webcast will be archived for one month following the call.
Four Seasons Hotels and Resorts is the world's leading operator of luxury hotels and currently manages 48 properties
in 20 countries, primarily under the Four Seasons and Regent brand names. Four Seasons Hotel Cairo at The First
Residence opened May 1, 2000 as the company's first property in the Middle East. Additionally, Four Seasons second
vacation ownership development, Four Seasons Resort Club Scottsdale at Troon North, opened its first phase in April
2000. Hotels expected to enter the market in 2001 include Dublin, Ireland; Caracas, Venezuela; San Francisco, California;
Prague, Czech Republic; and Sharm El Sheikh, Egypt and a vacation ownership development in Punta Mita, Mexico.
1999 marked the opening of properties in Las Vegas, Nevada; Punta Mita, Mexico London at Canary Wharf, England;
Paris, France; and Scottsdale, Arizona. While most hotels bear the respective names of Four Seasons or Regent,
some do not, including The Ritz-Carlton in Chicago and The Pierre in New York.
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 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 Caribbean.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
(unaudited) ($000's,
except per share amounts)
--------------------------------------------------------------------
Consolidated revenues
(note 2) $ 80,760 $ 65,989 $ 243,390 $ 191,764
-----------------------------------------
-----------------------------------------
MANAGEMENT OPERATIONS
Revenues (note 3) $ 44,819 $ 36,171 $ 131,482 $ 104,405
General and administrative
expenses (14,899) (13,156) (44,832) (40,650)
-----------------------------------------
29,920 23,015 86,650 63,755
-----------------------------------------
OWNERSHIP OPERATIONS
Revenues 34,396 30,267 111,376 88,291
Distributions from hotel
investments 3,231 1,267 5,756 3,645
Expenses:
Cost of sales and
expenses (32,514) (28,860) (106,928) (90,489)
Fees to Management
Operations (1,686) (1,716) (5,224) (4,577)
-----------------------------------------
3,427 958 4,980 (3,130)
-----------------------------------------
Earnings before other
operating items 33,347 23,973 91,630 60,625
Depreciation and
amortization (3,943) (3,048) (10,635) (8,883)
Other operating income
(expense), net 172 (773) 2,752 3,278
-----------------------------------------
Earnings from operations 29,576 20,152 83,747 55,020
Interest income
(expense), net 1,215 690 2,697 (898)
-----------------------------------------
Earnings before income
taxes 30,791 20,842 86,444 54,122
-----------------------------------------
Income tax expense:
Current (4,397) (406) (16,264) (1,217)
Future (3,301) (93) (5,347) (350)
Reduction of future income
tax asset (note 4) - - (282) -
-----------------------------------------
(7,698) (499) (21,893) (1,567)
-----------------------------------------
Net earnings $ 23,093 $ 20,343 $ 64,551 $ 52,555
-----------------------------------------
-----------------------------------------
Basic earnings per share $ 0.67 $ 0.60 $ 1.87 $ 1.54
-----------------------------------------
-----------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED BALANCE SHEETS
As at As at
September 30, December 31,
(unaudited) ($000's) 2000 1999
--------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 179,271 $ 222,245
Receivables 85,083 60,931
Inventory 3,221 2,869
Prepaid expenses 2,131 1,754
---------------------------
269,706 287,799
Long-term receivables 151,894 129,174
Investments in hotel partnerships
and corporations 175,107 116,010
Fixed assets 45,084 39,748
Investment in management contracts 198,048 186,025
Investment in trademarks and
trade names 34,924 35,306
Future income tax asset 17,913 6,864
Other assets 36,053 31,213
---------------------------
$ 928,729 $ 832,139
---------------------------
---------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 53,395 $ 57,311
Long-term debt due within one year 1,135 1,005
---------------------------
54,530 58,316
Long-term debt 201,766 186,126
Shareholders' equity (note 5):
Capital stock 315,292 308,993
Convertible notes 178,393 178,424
Contributed surplus 4,784 4,784
Retained earnings 166,050 94,150
Equity adjustment from foreign
currency translation 7,914 1,346
---------------------------
672,433 587,697
---------------------------
$ 928,729 $ 832,139
---------------------------
---------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CASH PROVIDED BY OPERATIONS
Three months ended Nine months ended
September 30, September 30,
(unaudited) ($000's) 2000 1999 2000 1999
---------------------------------------------------------------------
Cash provided by (used in) operations:
MANAGEMENT OPERATIONS
Earnings before other
operating items $ 29,920 $ 23,015 $ 86,650 $ 63,755
Items not requiring
(providing) an outlay
(inflow) of funds 170 (370) (402) (170)
------------------------------------------
Working capital provided by
Management Operations 30,090 22,645 86,248 63,585
------------------------------------------
OWNERSHIP OPERATIONS
Earnings (loss) before
other operating items 3,427 958 4,980 (3,130)
Items not requiring
(providing) an outlay
(inflow) of funds (2,824) (32) (943) 3,522
------------------------------------------
Working capital provided
by Ownership Operations 603 926 4,037 392
------------------------------------------
30,693 23,571 90,285 63,977
Recovery of loss 410 1,126 4,025 5,290
Interest received 3,266 447 12,430 6,341
Interest paid (3,308) (4,197) (6,809) (9,182)
Current income tax paid (10,402) (406) (14,202) (1,217)
Change in non-cash working
capital (6,511) (1,144) (24,725) 1,710
Other (337) (1,899) 98 (2,012)
------------------------------------------
Cash provided by
operations $ 13,811 $ 17,498 $ 61,102 $ 64,907
------------------------------------------
------------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
Three months ended Nine months ended
September 30, September 30,
(unaudited) ($000's) 2000 1999 2000 1999
---------------------------------------------------------------------
Cash provided by (used in):
Operations: $ 13,811 $ 17,498 $ 61,102 $ 64,907
Financing:
Long-term debt,
including current
portion (201) (64,285) (288) (46,441)
Issuance of shares 4,129 620 6,267 6,175
Issuance of convertible
notes - 215,007 - 215,007
Dividends paid (1,791) (1,778) (3,579) (3,539)
Other 1 74 (39) (376)
------------------------------------------
Cash provided by financing 2,138 149,638 2,361 170,826
------------------------------------------
Capital investments:
Long-term receivables (27,793) (15,066) (35,864) (58,629)
Hotel investments (10,473) (8,575) (50,459) (29,040)
Purchase of fixed assets (1,748) (2,347) (8,393) (10,416)
Investment in trademarks,
trade names and
management contracts (1,425) (289) (7,348) (844)
Other assets (4,492) (3,330) (6,315) (6,466)
------------------------------------------
Cash used in capital
investments (45,931) (29,607) (108,379) (105,395)
------------------------------------------
Increase (decrease) in
cash (29,982) 137,529 (44,916) 130,338
Increase (decrease) in
cash due to unrealized
foreign exchange gain
(loss) 1,175 149 1,942 (21)
Cash and cash equivalents,
beginning of period 208,078 10,230 222,245 17,591
------------------------------------------
Cash and cash equivalents,
end of period $ 179,271 $ 147,908 $ 179,271 $ 147,908
------------------------------------------
------------------------------------------
See accompanying notes to consolidated financial statements.
FOUR SEASONS HOTELS INC.
NOTES TO THE 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.
b. 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 $671,622 for the third
quarter of 2000 ($561,241 for the third quarter of 1999), and
$2,046,958 for the first nine months of 2000 ($1,708,059 for
the first nine months 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 59% 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 September 30, 2000, the Company has outstanding Variable
Multiple Voting and Limited Voting Shares of 34,798,049 and
outstanding stock options of 5,086,120. In addition, the
Company has 655,404 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.
FOUR SEASONS HOTELS INC.
SUMMARY OF HOTEL OPERATING DATA - CORE HOTELS(1)
Three months ended
September 30,
(Unaudited) 2000 1999 Variance
---------------------------------------------------------------------
Worldwide
No. of Properties 39 39 -
No. of Rooms 11,355 11,355 -
Occupancy(2) 74.0% 71.8% 2.2%
ADR(3) - in US dollars $282 $266 5.8%
- in equivalent Canadian
dollars $416 $395 5.5%
RevPAR(4) - in US dollars $208 $191 9.1%
- in equivalent Canadian
dollars $308 $283 8.8%
Gross operating margin(5) 35.6% 35.0% 0.6%
United States
No. of Properties 20 20 -
No. of Rooms 6,348 6,348 -
Occupancy(2) 78.7% 75.9% 2.8%
ADR(3) - in US dollars $330 $309 6.8%
- in equivalent Canadian
dollars $488 $458 6.5%
RevPAR(4) - in US dollars $260 $235 10.8%
- in equivalent Canadian
dollars $384 $348 10.5%
Gross operating margin(5) 35.5% 35.2% 0.3%
Canada/Mexico/Caribbean
No. of Properties 3 3 -
No. of Rooms 1,004 1,004 -
Occupancy(2) 72.4% 78.9% (6.5%)
ADR(3) - in US dollars $204 $198 3.1%
- in equivalent Canadian
dollars $302 $293 2.8%
RevPAR(4) - in US dollars $148 $156 (5.4%)
- in equivalent Canadian
dollars $218 $231 (5.7%)
Gross operating margin(5) 36.0% 40.8% (4.8%)
Asia/Pacific
No. of Properties 11 11 -
No. of Rooms 3,132 3,132 -
Occupancy(2) 65.5% 61.4% 4.1%
ADR(3) - in US dollars $175 $165 6.1%
- in equivalent Canadian
dollars $259 $245 5.8%
RevPAR(4) - in US dollars $115 $101 13.2%
- in equivalent Canadian
dollars $170 $150 12.9%
Gross operating margin(5) 33.8% 30.5% 3.3%
Europe
No. of Properties 5 5 -
No. of Rooms 871 871 -
Occupancy(2) 71.0% 69.6% 1.4%
ADR(3) - in US dollars $326 $327 (0.2%)
- in equivalent Canadian
dollars $482 $484 (0.4%)
RevPAR(4) - in US dollars $232 $227 1.9%
- in equivalent Canadian
dollars $342 $337 1.6%
Gross operating margin(5) 40.2% 38.7% 1.5%
(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 resorts 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 or resort.
(5) Gross operating margin represents gross operating profit as a
percent of gross operating revenue.
FOUR SEASONS HOTELS INC.
SUMMARY OF HOTEL OPERATING DATA - CORE HOTELS(1)
Nine months ended
September 30,
(Unaudited) 2000 1999 Variance
---------------------------------------------------------------------
Worldwide
No. of Properties 39 39 -
No. of Rooms 11,355 11,355 -
Occupancy(2) 73.0% 70.0% 3.0%
ADR(3) - in US dollars $284 $267 6.6%
- in equivalent Canadian
dollars $418 $397 5.3%
RevPAR(4) - in US dollars $208 $187 11.0%
- in equivalent Canadian
dollars $305 $278 9.7%
Gross operating margin(5) 36.8% 34.9% 1.9%
United States
No. of Properties 20 20 -
No. of Rooms 6,348 6,348 -
Occupancy(2) 77.8% 75.4% 2.4%
ADR(3) - in US dollars $336 $309 8.5%
- in equivalent Canadian
dollars $493 $460 7.2%
RevPAR(4) - in US dollars $261 $233 11.9%
- in equivalent Canadian
dollars $384 $347 10.6%
Gross operating margin(5) 36.9% 35.8% 1.1%
Canada/Mexico/Caribbean
No. of Properties 3 3 -
No. of Rooms 1,004 1,004 -
Occupancy(2) 68.5% 70.4% (1.9%)
ADR(3) - in US dollars $188 $182 3.0%
- in equivalent Canadian
dollars $276 $271 1.8%
RevPAR(4) - in US dollars $129 $128 0.3%
- in equivalent Canadian
dollars $189 $191 (0.9%)
Gross operating margin(5) 32.1% 34.0% (1.9%)
Asia/Pacific
No. of Properties 11 11 -
No. of Rooms 3,132 3,132 -
Occupancy(2) 64.1% 59.1% 5.0%
ADR(3) - in US dollars $178 $169 5.4%
- in equivalent Canadian
dollars $262 $252 4.1%
RevPAR(4) - in US dollars $114 $100 14.3%
- in equivalent Canadian
dollars $168 $149 13.0%
Gross operating margin(5) 35.9% 31.3% 4.6%
Europe
No. of Properties 5 5 -
No. of Rooms 871 871 -
Occupancy(2) 74.0% 68.8% 5.2%
ADR(3) - in US dollars $317 $319 (0.7%)
- in equivalent Canadian
dollars $466 $475 (1.9%)
RevPAR(4) - in US dollars $235 $220 6.9%
- in equivalent Canadian
dollars $345 $326 5.6%
Gross Operating margin(5) 40.8% 36.8% 4.0%
(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 resorts 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 or resort.
(5) Gross operating margin represents gross operating profit as a
percent of gross operating revenue.
FOUR SEASONS HOTELS INC.
SUMMARY OF HOTEL OPERATING DATA - ALL MANAGED HOTELS
As at
September 30,
(Unaudited) 2000 1999 Variance
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Worldwide
No. of Properties 48 44 4
No. of Rooms 14,052 13,185 867
United States
No. of Properties 22 21 1
No. of Rooms 6,982 6,772 210
Canada/Mexico/Caribbean
No. of Properties 5 5 -
No. of Rooms 1,340 1,340 -
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
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Contact:
Four Seasons Hotels Inc.
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