A Four Seasons Case Study The Ultimate Test for Isadore...

In early May 2009, Isadore Sharp released a much awaited book about his business brainchild. The founder and CEO of Four Seasons Hotels and Resorts, a company he spent nearly five decades building out of a motor lodge in Toronto, Sharp shares the secrets to his astounding rise in the most unpredictable of industries. ‘Four Seasons: the Story of a Business Philosophy’ ends as the company and the lodging industry enter a crucial period of existence, with the dawn of an unprecedented economic downturn on a global scale. Having given numerous interviews on creating one of the most recognised and respectable brands in the industry, Sharp now has to answer questions on the feasibility of the company’s business model in the current economic†¦show more content†¦Speaking about Four Seasons and its powers in terms of contractual agreements with hotel owners he says, â€Å"They manage all aspects of operations and that gives them significant leverage, if they choose it†¦.. They make it clear that it is in your best interest to not oppose their plans.† Another instance of the adverse effect of the economic downturn has been felt at the Four Seasons Hotel, San Francisco. Millennium Partners , the hotel’s owners, have defaulted in the payment of their two-year old $90-million CMBS loan. Though this was done intentionally, to convince the lenders for restructuring of the debt and make use of more convenient payment solutions, it is worth noting that with decreasing property prices, the value of the San Francisco hotel was lower than its total debt. (http://trendsupdate.com) In 2007, Isadore Sharp sold all but 5% of Four Seasons’ shares to two investors he thought had the right mindset and would believe in the way the company was being managed in his hands. Microsoft chairman, Bill Gates and Prince Al-Waleed bin Talal, the nephew of the king of Saudi Arabia bought the company for an astounding US$3.8 billion. The prince reiterated his commitment to the company and his faith in Sharp’s abilities at the helm when, during the height of the recession he said, â€Å"We’re doing it for profit. But