IPO or merger for Four Seasons?
Nov 21, 2013, 6:09 pm
#1
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IPO or merger for Four Seasons?
Al-Waleed is apparently considering an IPO or merger for FS according to this article:
http://www.bloomberg.com/news/2013-1...-fairmont.html
http://www.bloomberg.com/news/2013-1...-fairmont.html
Nov 22, 2013, 5:48 pm
#2
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i was just in toronto, thats where the two companies are, we met both management companies...our objective right now is to grow both companies and have a monetization process, whether IPO, reverse merger or merger...the hotel industry is facing major upside right now. This may go on another three or four years. so there is a window of opportunity for us right now...clearly we’ll defer to management but they have my views very clear
met CEOs of both companies (and isadore sharp) >
http://www.kingdom.com.sa/press-media/investor-news
re brand new FS CEO >
http://www.hospitalitynet.org/news/4062718.html
HOTELS Magazine recently conducted the first interview with Allen Smith since he started his new job on September 23 as president and CEO of Four Seasons
re fairmont raffles, alwaleed brought up IPO back in 2010 after qatar became largest owner >
http://www.bloomberg.com/news/2010-0...lion-deal.html
seem to recall he may have brought up IPO before qatar invested as well
qatar is increasing stake, buying colony stake would take them to 62% >
http://www.arabianbusiness.com/qatar...ke-501315.html
Last edited by Kagehitokiri; Nov 22, 2013 at 6:11 pm
Nov 25, 2013, 8:59 am
#4
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he owns 47.5% of FS and 35.0% of fairmont raffles
met CEOs of both companies (and isadore sharp) >
http://www.kingdom.com.sa/press-media/investor-news
re brand new FS CEO >
http://www.hospitalitynet.org/news/4062718.html
anyone read it?
met CEOs of both companies (and isadore sharp) >
http://www.kingdom.com.sa/press-media/investor-news
re brand new FS CEO >
http://www.hospitalitynet.org/news/4062718.html
anyone read it?
Nov 29, 2013, 8:25 pm
#5
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Dec 1, 2013, 10:56 am
#8
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Having worked with a number of clients who have gone private and then re-emerged as public entities, generally this has worked out great for the LBO firm / investors and negatively for the end customers.
In my experience, there are generally cost cutting measures going into effect to improve the financials which usually means higher rates or inferior end product. Sure there may be efficiencies to be had around internal organization and process, but ultimately the end product usually suffers.
Once they are public again, then there is increased scrutiny on financial metrics as well as pressure from the street regarding earnings, margins, etc etc.
Granted I am speaking in stereotypes here, but as I originally said, I can't see how this is good for any of us. I hope to be proven wrong.
Dec 1, 2013, 1:07 pm
#9
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Dec 1, 2013, 8:31 pm
#11
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Concern of public versus private
Having a more diversified ownership base with open financial results is more likely than not to result in Four Seasons as a brand doing even more to strengthen the quality of the guest experiences, so we will come back and spend more...to increase their profit (and have a better quality of life for themselves and their family). Even for the employees this is true...Four Seasons, has demonstrated a higher rate of return from investment, when you invest more in your employees and your guests.
Dec 1, 2013, 8:49 pm
#12
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Dec 1, 2013, 8:50 pm
#13
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Having a more diversified ownership base with open financial results is more likely than not to result in Four Seasons as a brand doing even more to strengthen the quality of the guest experiences, so we will come back and spend more...to increase their profit (and have a better quality of life for themselves and their family). Even for the employees this is true...Four Seasons, has demonstrated a higher rate of return from investment, when you invest more in your employees and your guests.
Dec 1, 2013, 10:25 pm
#14
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Dec 2, 2013, 8:16 am
#15
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"I'm not sure why this would be a worry" = does not consider service/quality and what they cost, and cost-cutting.
edit - ah, gegarrenton may also have been referring to FS having larger hotels with higher occupancy and lower rates.
quality has to be expensive, but expensive does not mean quality. and luxury hotels are low margin. sometimes because of debt, seems that is the case for aman. - http://www.flyertalk.com/forum/luxur...arn-money.html
there has been no good news re ownership of FS or aman - http://www.flyertalk.com/forum/luxur...sons-vibe.html
Last edited by Kagehitokiri; Dec 3, 2013 at 9:24 pm