The Four Seasons Hotel announced today that it has been approached by a consortium of investors to take the company private.

The Toronto based hotel and resort chain has been valued at $3.7 billion or US$82 per share, representing a 28.4% premium over its closing price on November 3. The consortium includes investments from Crown Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, Microsoft Corp.’s Bill Gates and the current chairman and CEO of Isadore Sharp.

This transaction is intended to ensure the legacy of the Four Seasons, Sharp told reporters in a teleconference. This proposal achieves all my objectives for Four Seasons and my family, and is the only one that I am prepared to pursue.

Interest in the hotel industry has been fuelled by the rise in hotel room rates and values. Recently another Canadian hotel, the Fairmont Hotels & Resorts Inc. was acquired for $5.5 billion.

“We think the offer is credible and will gain shareholder and regulatory approval, said Standard & Poor's analyst William Mack in a research note. He raised the target price of the firm to $70.

The purchase of the hotel was meant to “provide a significant premium to minority shareholders as well as to ensure the continuity and stability for our hotel owners, customers and employees for the long term, said Sharp.

The Four Seasons Hotel announced today that it has been approached by a consortium of investors to take the company private.

The Toronto based hotel and resort chain has been valued at $3.7 billion or US$82 per share, representing a 28.4% premium over its closing price on November 3. The consortium includes investments from Crown Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, Microsoft Corp.’s Bill Gates and the current chairman and CEO of Isadore Sharp.

This transaction is intended to ensure the legacy of the Four Seasons, Sharp told reporters in a teleconference. This proposal achieves all my objectives for Four Seasons and my family, and is the only one that I am prepared to pursue.

Interest in the hotel industry has been fuelled by the rise in hotel room rates and values. Recently another Canadian hotel, the Fairmont Hotels & Resorts Inc. was acquired for $5.5 billion.

“We think the offer is credible and will gain shareholder and regulatory approval, said Standard & Poor's analyst William Mack in a research note. He raised the target price of the firm to $70.

The purchase of the hotel was meant to “provide a significant premium to minority shareholders as well as to ensure the continuity and stability for our hotel owners, customers and employees for the long term, said Sharp.