Originally Posted by
Tonyr4
This hotel lost money in 2018 & 2019 before the pandemic even began yet the Four Seasons still collects its management fees no matter what. Not surprised there is a fight between the owner and four seasons corporate, I'd keep it closed too if I were in the owners shoes.
Mr Warner surely knew what he was signing up for... FS has standards to uphold and it's not entirely unusual for a property to make losses for certain period... it's a long term game and about real estate. And frankly Four Seasons made enough sacrifices for this man: yes, he gave them an iconic hotel, but they outsourced the Spa, they cut a very good restaurant and engaged in various cost cutting measures to meet his demands. I understand their side as well. Just look at the rooms... they're all his design, this owner is way too hands-on, he decided so many details. Including that infamous penthouse bearing his name.
I think he expected FS to offer waiving their management fees for the Covid closure period. That didn't happen, given they themselves have to deliver revenue. Not surprised here... however now with the current market there would have been a healthy profit.