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Isadore Sharp & Four Seasons Hotels and Resorts: Redefining Luxury and
Building a Sustained Brand

Article  in  Journal of Hospitality & Tourism Education · May 2008

DOI: 10.1080/10963758.2008.11736081

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Isadore Sharp a Four Seasons Hotels and Resorts: Redefining
Luxury and Building a Sustained Brand
Leonard A. Jackson and Sandra Naipaul
The authors would like to thank Ms. Nicola Blazier, Media
Relations Manager, Four Seasons Hotels and Resorts, for her
contribution in completing this article.
Introduction
Over the past four decades, the Four Seasons brand has be-
come synonymous with consistent, exceptional, anticipatory and
enthusiastic service. In fact, the brand symbolizes luxury and
elicits spontaneous awareness amongst seasoned global travelers
who desire luxury accommodations. This achievement is remark-
able since brands as a whole take a long time to develop their
visibility, strength and power, usually at great expense to orga-
nizations. In fact, the development of strong brands is reported
to incur costs that hover between $100 million (Ourusoff, 1992),
and $ 150 million (Tauber, 1998). Despite this enormous finan-
cial investment, brands are also predicted to have a 50 percent
probability of failure (Crawford a Di Benedetto, 2008). In spite
of these assertions, over the past four decades, the equity the
company generated from its brand has enabled it to evolve from
an asset ownership company into the premier lodging manage-
ment company. In fact, the company is considered to be a "purely"
lodging management company since it does not engage in other
business lines. For example, the company does not engage in the
real estate or travel aspects of the hospitality and travel industries.
In essence, the growth and success of the company can be
attributed to the strength of its brand, since strong brands and
their corresponding brand equity are considered to be essentials
elements for success in the hotel industry (Jiang, Dev, â Rao,
2002; Prasad a Dev, 2000).
By all accounts. Four Seasons Hotels a Resorts typifies all
aspects of a successful brand. This is seen from the perspective
that strong brands such as the Four Seasons brand are usually
defined as the creation of value in the minds of consumers be-
yond the observable physical value of the product or service,
which allows spontaneous awareness of the brand amongst
consumers as well as allow the company to differentiate itself
from its competitors (Aaker, 1991). The growth, success and
prominence of Four Seasons Hotels a Resorts can be attributed
Leonard A. Jackson, Assistant Professor, Rosen College
of Hospitality Management University of Central Florida
and Sandra Naipaul, Assistant Professor, Rosen College of
Hospitality Management, University of Central Florida, 9907
Universal Blvd., Orlando, FL 32818
44
to the unmatched leadership of its founder. Chairman, and Chief
Executive Officer, Isadore Sharp, who has established himself at
an iconic leader who redefined the concept of luxury in the lodg-
ing segment of the hospitality industry. It is interesting to note
that the concept of luxury as defined by Mr. Sharp and the Four
Seasons is not centered on opulent design, architecture or fur-
nishings, but instead on service.
Isadore Sharp: Visionary, Innovator, Leader, Coach
and Humanitarian
Personal Background
Isadore "Issy" Sharp was born on October 8, 1931 in Toronto,
Canada. The son of Polish immigrants, he grew up vflth three sib-
lings (sisters) in downtown Toronto. As a teenager, Mr. Sharp worked
with his father who was a plasterer by trade, but worked as a
building renovator. His early childhood revolved around his father's
business. For example, as a young man, he moved frequently as
his family would occupy a dwelling renovated it then moved on. In
fact, he moved fifteen times during his first sixteen years. His love
for the building and construction industry led him to Ryerson Insti-
tute of Technology (now Ryerson University), where he graduated in
1952 with a degree in architecture. Upon graduation, he joined his
father. Max Sharp and formed Max Sharp a Son.
Mr. Sharp's personal life mirrors the consistency and stabil-
ity that his company is known for. He has been married to his
wife Rosalie Wise Sharp for over fifty years. Mrs. Sharp actively
participates in the company and is the lead interior decorator
for all Four Seasons properties. Together, the Sharps have four
sons, Jordon, Gregory, Anthony and Christopher (deceased-in
1978 at the age of 17 from melanoma).
Early beginnings, chance encounter, concept
development and refinement
Mr. Sharp's first love was the construction industry, and he
envisioned pursuing a career in this industry. However, after
building a motel for a friend in the mid 195O's, and seeing its
success, he decided to enter the "hotel business". However, at
the time, he considered this move as a real estate deal rather
than actually entering into the "hotel business". Hence, in the
early stages, of his "hotel career", he considered himself more
of a real estate developer rather than a hotelier. Thus, after
working with his father for many years, he ventured out on his
own in 1959 and formed Four Seasons Hotels in 1960, with the
primary goal of developing hotels. Although he did not possess
Volume 20, Number 2
 the honed skills of an experienced hotel developer or operator,
he understood that his first priority in building hotels was to
select a site that was easily accessible to transportation, have
ample parking spaces and in close proximity vibrant activities.
These criteria led him to select Jarvis Street in downtown To-
ronto as the site of the first Four Seasons Hotel, the 125 room
Four Seasotis Motor Hotel which opened in 1961. Ironically, while Seasons Inn on the Park, London won hotel of the year.
today's Four Seasons hotels are located in the affluent areas of
cities, the Four Seasons Motor Hotel was located in the "red-
light" or socially less desirable part of downtown Toronto, in an
area known for its ill-repute and illicit activities.
A true leader, Mr. Sharp quickly understood and acknowl-
edged his shortcomings as a hotelier and hired a seasoned
veteran, Ian Munroe to oversee the day to day operations of the
motel. Today, Mr. Sharp credits Mr. Munroe as his mentor and
first hospitality business teacher. Even at this early stage, his
emphasis was satisfying the needs of the guests in an innovative
manner. This meant that he provided a mix of product-service
offering based on the customers' perceived needs. For example,
he understood that traveling women often needed shampoo to
wash their hair and subsequently placed shampoo in all gue-
strooms at the Four Seasons Motel Hotel. Although by today
standards this amenity in guestrooms is a standard practice, at
the time it was innovative since the Four Seasons Motor Hotel
was the first company that provided guests with shampoo. The
Four Seasons Motor Hotel was followed two years later by the
Inn on the Park, Toronto, which was also innovative since it
was essentially a city resort, one of the first of its kind. Other
notable Four Seasons innovations include 24 hour room service,
bathrobes, cleaning and pressing, a two-line telephone in every
guestroom, a big, well lighted desk in every guestroom, over-
night shoe repair service and 24 hour secretarial service. The
Four Seasons is also the first large hotel chain to manage facili-
ties that bore its name rather than own such facilities. This
structure freed up capital and management resources as well
as protected the company from fluctuations in the real estate
cycles. Hence, over the years, while other hotel companies have
suffered from the hotel real estate investment cycle, the Four
Seasons has remained virtually unaffected.
A chance encounter helped to change Mr. Sharp's mindset
from developing hotels as a purely real estate investor, to de-
veloping such properties as a hotelier. During the 196O's, while
on vacation in London, Mr. Sharp and his wife Rosalie stayed at
the Dorchester hotel, which is known for delivering a high level
of service. On his return to Toronto, he relived his experiences
at the Dorchester with a gentleman, who as fate would have
it, worked for the company which owned the Dorchester. Seiz-
ing the opportunity that the encounter presented, Mr. Sharp
promptly told the gentleman that if the company wanted to
Journal of ¡Hospitality ö Tourism Education
build another hotel in London, he would make it better that the
Dorchester. The company took him up on the offer and in 1970,
the Four Seasons Inn on the Park, London opened. The hotel was
also innovative since it was the first "modern" hotel in London
that offered ultimate luxury along with modern conveniences
such as air conditioning. In its first year of operation, the Four
During the construction of the Inn on the Park, London, Mr.
Sharp had an epiphany which essentially transformed him from
a real estate developer into a true hotelier, and honed his focus
on developing midsized hotels that offered exceptional service.
In the early 197O's, he entered into a deal with Sheraton ITT to
jointly develop a convention hotel. The Four Seasons Sheraton,
in downtown Toronto. However, after analyzing the performance
of each of his properties, he realized that this concept (con-
vention hotel) was not conducive to his vision and quickly sold
his interest to Sheraton and refocused instead on developing
mid-sized hotels that offered exceptional service in a luxurious
environment and catered to a specific niche.
He made the decision after observing that in contrast to his
other smaller properties, the Four Seasons Sheraton catered to
masses which meant that the personal service touch could not
be offered to every guest. In addition, the fact that the Four
Seasons London, a smaller property, was voted the best hotel
solidified his decision to focus on developing smaller hotels that
catered to the luxury segment. Hence, in 1972, he sold his 49%
share in the Four Seasons Sheraton and decided that from hence-
forth, he would focus on developing midsized hotels that offered
exceptional and anticipatory service. Thus, follovi/ing this event,
the hotelier Isadore Sharp emerged and the Four Seasons concept
of medium sized properties offering exceptional service was born.
From a profitability and strategic standpoint, Mr. Sharp cor-
rectly and perceptively saw the relationship between hotel size,
price and amenity. He intuitively reasoned that if the company
could provide a high standard of service and offered additional
amenities, guests would be willing to pay a higher price for such
service. Since 1972, the company has expanded in terms of ge-
ography, numbers and concepts. The company entered the US
marketplace in 1977and thirteen years later, it entered the Asia-
Pacific marketplace. Responding to market demand, in 1986,
the company introduced a full service spa at the Four Seasons
Resort and Club, Dallas. In 2001, this service was introduced
at all resorts while all other properties worldwide offer on-site
spa services. The company also extended its brand in 1997 to
include Four Seasons Residential properties which provide full
or fractional ownership products. At the start of 2008, the com-
pany had 75 hotels in its portfolio. These hotels and resorts were
located in 31 different countries. The company employs approxi-
mately 34,000 employees (Four Seasons Hotels & Resorts, 2008).
45
 As one examines the growth and evolution of Four Seasons
Hotels and Resorts, it is easy to discern that Mr. Sharp is a true
visionary and innovator. From the onset, the Four Seasons brand
was developed with the needs of the global traveler in mind. For
example, as previously mentioned, air conditioning units were
installed at the Four Seasons Inn on the Park, London (1970). At
the time, hotels in London did not have air conditioning units
since it was widely believed that the English weather did not
require air condition units. However, Mr. Sharp argued that inter-
national travelers such as Americans would expect such features
when they travel to London. In addition, Mr. Sharp's vision of the
value and potential of niche marketing (catering exclusively to
the luxury segment) was remarkable especially since interna-
tional travel was an emerging trend in the 1960s and 70s.
In keeping with the profile of the company and its client
base. Four Seasons commercial hotels are typically located
within the most affluent sections of cities, within the business
district as well as close to shopping. Resorts on the other hand
are located in exotic "safe" locations that provide opportunities
for expansive outdoor activities. In general. Four Seasons hotels
cost over $1 million per room to develop and build. It should
be noted that although the company has evolved into a purely
management company, it still assists developers with the design
development and construction of properties. Once the company
has identified a project, it will work with the developers through
the development phases to ensure that the company's standards
are maintained. This includes design, construction, purchasing
and interior decorating. Upon completion of construction the
company sends a team to select and train employees and open
the hotel. Typical Four Seasons Hotels offer full concierge ser-
vices, valet services, twenty-four hour room service, twice per
day housekeeping service and overnight valet service.
Management Philosophy and Leadership Style
Mr. Sharp's philosophy emanates from his vision of consis-
tency and his strong belief in treating people well. Essentially,
his philosophy which he actively practices is that a one should
"treat others as you would have them treat you" which is
termed the "Golden Rule". This "Golden Rule" serves as the
company's credo and encompasses all business practices such
as human resources, operations, design, purchasing, marketing
and other functional areas. This philosophy guides his leadership
style and permeates throughout the Four Seasons organization.
This philosophy is targeted towards both his internal (employ-
ees) and external customers. Mr. Sharp's fundamental belief
is that if internal customers are treated well, they in turn will
extend exceptional service towards external customers. In fact,
the stated goals or "pillars" of Four Seasons centers on the "3
P's", people, product and profit, with people being the center
46
of the three. According to Mr. Scott Woroch, Four Seasons Execu-
tive Vice President of Worldwide Development (Luxury Hotelier,
2007) "...anybody with money can build a luxury, five star hotels,
but what distinguish the Four Seasons is the service element, the
people element" (Higley, 2007, p.26).
Although Mr. Sharp strongly believes in establishing the
vision for the company, he acknowledges the value of his
employees and their contribution and as such, believes that
employees should be empowered and given the opportunity to
make their own decisions, so that they can maximize their true
potential and in the process create value for the company's
stakeholders. He noted that, the "People element only works
when employees are empowered" (Higley, 2007, p.26). Mr.
Sharp's treatment of his employees is evidenced by the fact that
the fact that senior executives stay an average of 25 years with
the company. His affinity for his employees is returned in kind,
as he is aptly described by his employees as an individual who
genuinely cares about his employees. For example, Ms. Barbara
Talbott, Four Seasons executive vice president of marketing,
noted that Mr. Sharp's convictions about his employees run deep
(Luxury Hotelier, 2007). Mr. FitzGibbon, Chief Operations Officer
for the company, further supported this sentiment by noting
that, "Mr. Sharp believes you have to see people as people and
not as a cost on your balance sheet" (Higley, 2007, p.26).
Mr. Sharp is often described by his employees as a mentor
and coach. He fully understands and acknowledges that a com-
pany's greatest assets are its people. Further, he acknowledges
that once employees are given the opportunity to participate in
meaningful ways they will give their best. Mr. Sharp also takes a
proactive approach to leadership, and strongly believes in suc-
cession planning. This leadership trait was highlighted by the
company's recent decision to take the company from public to
private. At age seventy-five, he realized that he is in the twilight
of his illustrious career and had to put in place an ownership
structure that had the resources that would ensure that the
brand remained viable after he leaves the company. Hence, in
April 2007, the company sold interests to Cascade Investment
LLC and Kingdom Hotels International. Mr. Sharp's success as a
leader is highlighted by the numerous leadership and business
awards he has received during the course of his career. Listed
below are the awards he received over the years.
Mr. Sharp's Leadership and Business Av/ards
• Ivey Business Leader Award 2006 - Ivey Alumni Associa-
tion/Toronto
Honorary Associate Award 2005 - The Conference Board of
Canada
• Lifetime Achievement Award 2005 - The American Lodging
Volume 20, Number 2
 Investment Summit (ALIS)
Canadian Hotel Industry Icon Award 2005 - Canadian Hotel
Investment Conference
Lifetime Achievement Av/ard 2003 - Ontario Ernst & Young
2003 Entrepreneur of The Year Program
• Honorary Doctor of Commerce degree 2003 - Ryerson
University in recognition of his exceptional career accom-
plishment, distinguished leadership in business and the
hotel industry, and outstanding commitment and contribu-
tion to the community.
• International Distinguished Entrepreneur Avi/ard 1999
1998 Ryerson Alumni Av^ard of Distinction for outstanding
contribution of graduates of Ryerson Polytechnic Univer-
sity to business and community life
Inducted into the Canadian Business Hall of Fame 1998
• Honorary Doctor of Lav^s degree - University of Toronto in
recognition of outstanding accomplishments as a Canadian
businessman and entrepreneur and of his leadership in
service to the community.
• Appointed an Officer of the "Order of Canada" in rec-
ognition of outstanding achievement and service. The
investiture was presented in April 1993 by the Governor
General of Canada in Ottawa
'The; CEO of the Year" Award 1992 - The Financial Post
Magazine
Honorary Doctor of Laws degree 1992 - University of Guelph
"Man of the Year" 1989 - Foodservice and Hospitality
Canada's Hospitality Magazine
• "Officer de la Condrerie des Amis de L'hotellier Interna-
tionale" 1988 - International Hotel Association
• "Corporate Hotelier of the World" 1988 - Hotels ä Restau-
rants International Magazine (40,000 voters)
Source: (Four Seasons Hotels and Resorts, 2008)
Mr. Sharp's Philanthropic Activities and Awards
Like most successful entrepreneurs, Mr. Sharp also under-
stands that social responsibility also plays an important role in
the success of companies. He also believes that corporations
and individuals should give back to the community that from
which they receive support. Consequently, he actively engages
in several philanthropic activities. However, having lost a son to
cancer, he is most passionate about the annual Terry Fox Run,
which raises funds for cancer research. Listed below are the
various Philanthropic activities that Mr. Sharp is affiliated with as
well as awards he received for his work with these organizations.
• 2005 Outstanding Philanthropist Award - Association of
Professionals (AFP) Greater Toronto Chapter
Journal of Hospitality ô Tourism Education
Distinguished Service Award in International Rehabilitation
1989 - The New York-based World of Rehabilitation Fund.
• Ruth Hartman Frankel Humanitarian Award for work on
behalf of the Cancer Society
• Initiated the corporate sponsorship program supporting
the Terry Fox Marathon of Hope
Founder of the Annual Terry Fox Run Program (the largest
single-day fund raising event for cancer research world-
wide, having raised over $360 million to date)
• Co-Chairman - United Jewish Appeal 1985
NEGEV Dinner Honorée in 1989 - Jewish National Fund of
Canada
Source: (Four Seasons Hotels and Resorts, 2008)
Delivering Execptional and Anticipatory Service
The service culture of Four Seasons Hotels and Resorts
comes directly from its founder and leader, Isadore Sharp and is
embodied in the company's credo, the "Golden Rule". In this re-
gard, Mr. Sharp was able to see the casual relationship between
how the company treats its employees and the way the employ-
ees treat its guests. As previously mentioned, he reasoned that if
the company treated its employees well, the employees in turn
would treat the guests exceptionally well. To ensure consistent
and anticipatory service, the company developed a set of core
standards which must be followed by each property. Currently,
there are 270 service operating core standards which facilitate a
wholesome luxurious experience for the company's guests. These
standards are only modified if the modification makes sense lo-
cally, especially from a cultural standpoint. The emphasis on
quality permeates throughout the organization as even top man-
agers are required to check and ensure that service standards
are adhered to. This is augmented by quality control audits by
independent firms. To ensure that standards are current, operat-
ing standards assessed are updated periodically.
Company Credo
The company's credo emanates from basic humanistic values,
and is called the "Golden Rule". Simply stated, this rule translates
into "treat others as you would have them treat you". This is ex-
pected of both the employees in how they treat their internal and
external guests, as well as the company in how it treats its em-
ployees. In this regard, employees are provided v^th the necessary
resources that will enable them to provide exceptional service.
Four Seasons Corporate Core Values
Four Season's core values were developed by Mr. Sharp and
evolved over a fourteen year period. These core values serve as
the guiding force and structure of the company. The company's
core values surround quality, service, culture and brand. Below
47
is an explanation of how the company interprets each and the
year each core value was introduced.
Four Seasons' Core Values
Quality: "We will only operate medium-sized hotels of ex-
ceptional quality with an objective to be the best. "
- 1972.
Service: 'True luxury will be defined not by architecture of
décor, but by service. So we must make the quality
of our service our distinguishing feature and a com-
petitive advantage." - 1976.
Culture: "We will create a work ethic based on the Golden
Rule to give our people a framework to pursue a
superior service culture." -1980.
Brand: "We will grow as a management company and build
a brand name synonymous with quality." - 1986
Source: (Four Seasons Hotels & Resorts, 2008)
Employee Recruitment selection and Training
To fulfill Mr. Sharp's vision of ensuring consistency and
service excellence, there is genuine and concerted focus on em-
ployee recruitment, selection and training. In this regard, the
company puts all employees through an exhaustive and rigorous
selection process and tries to hire employees who are displays
the right attitude and appear to be highly motivated. One ex-
ample highlights how selective the employment and selection
process is. In 1993, when the Four Seasons opened its New York
property, they received 30,000 applications. Of this amount,
only 10 percent were selected for interviews. Eventually, 400
employees were hired. One of the company's mottos is that
they "hire for attitude and train for skills". Essentially, the com-
pany believes that the essential skills required to complete jobs
can be taught, however, only employees with the right attitude
who are highly motivated can deliver the exceptional service
that exemplifies the Four Seasons name.
Employees are selected through a behavior based interview
process that typically involves at least four interviews. The pur-
pose of this intense selection process which is not typical of most
hospitality companies is to ascertain the candidates' attitude and
level of motivation. This because the company believes that if they
hire the right employees with the right attitude, they can train
these individual and provide them with the tools that is neces-
sary to maintain the Four Seasons standards of service. During the
selection phase, the focus is not on a short term fix for a job, but
instead all applications are screened with emphasis on job stability
and progression. This application screening process is followed by
face to face unstructured interviews. During the interview process,
the interviewer tries to ascertain the applicant's attitude towards
guest service, others and their overall self worth. Part of the reason
48
for this "intense" process is that the company believes that sendee
should be delivered in a natural manner and cannot b e scripted.
Hence, great service employees cannot be pre-programmed to
deliver a cookie cutter type of service. Managers conducting in-
terviews are trained to focus on the applicant's body posture,
grooming, eye contact, communication skills and choice of words,
as well as their work experience and interactions v^th both guests
and employees at prior places of employment. In addition, the
selection process helps to ascertain whether or not the company is
the right fit for the candidate as well as the candidate being right
for the company.
Once hired, all employees undergo a training and orienta-
tion program which is designed to "indoctrinate" new employees
into the Four Seasons culture. During these sessions, employees
are taught the company's service standards as well as its funda-
mental values. Essential, emphasis is placed on delivering service
the Four Seasons way. The orientation sessions ensure that the
company's product service mix is delivered consistently globally.
In order to promote consistency within the company, its
management assists employees with career planning. In this
regard, managers are charged with assisting subordinates with
choosing their career paths with the company and every effort is
made to assist such employees in achieving their personal career
goals. The simple reason behind this approach is that the com-
pany believes that if the employee's personal career goals are in
congruence with the company's goals, then in the long term it
will lead to overall success for they company. To keep employees
motivated, the company offers incentives such as retirement
plans which they contribute on behalf of their employees. In
addition, the company offers individual awards to recognize em-
ployees who "went beyond the call of duty.
Signs of Success: Four Seasons Hotels and Resorts
Awards
Over the years, the company has received several awards
and accolades which indicate its leadership position in the luxury
segment, but most importantly suggests that the company's
focus on people and its mission, goals and core values that are
based on "Golden Rule" is working. Table 1 summarizes recent
awards and accolades received by the company.
The Future of the Four Seasons
As one examines the growth and success of Four Seasons
Hotels and Resorts, it is easy to discern that Mr. Sharp has care-
fully grown and nurtured the company in the same manner as
one would grow and nurture a child. However, a true leader, Mr.
Sharp understands that the company must continue to fulfill the
needs of all its constituents into the foreseeable future. Most
importantly, he understands that because of he has been ac-
Volume 20, Number 2
Table 1
Employment
Fortune Magazine
• Listed for 11 consecutive years as one of For-
tune magazine Top 100 companies to work for
in America.
• One of oniy 14 companies to be iisted since
the list was launched in 1998
Business Publications
Institutionat Investor*
• Seventeen hotels listed amongst the worid's
top 100 hotel (2007)
Gallivanter's Guide*
• Best Hotel Group Worldwide
• Best City Hotei Worldwide
• Best Leisure Resort Worldwide
• Best European City Hotei
• Best European Resort
• Best Hotei/Resort in the Middle East and Africa
• Best Resort in India & The Indian Ocean
• Best City Hotel in South East Asia
• Best Resort in South East Asia
• Best Hotel/Resort in East Asia
• Best Hotel/Resort in Australia and New Zea-
land
• Best City Hotel in North America
• Best Resort in North America
• Best Small Hotel/Resort Under 100 Rooms
• Best Spa Worldwide
• Best Hotel/Resort Cuisine Worldwide
• Best Hotel General Manager
• Editor's Choice Awards included
Source: http://www.fourseasons.com/about_us/awards_and_accolades.html
* For a complete listing of specific hotels that received awards, please visit the above website.
Journal of Hospitality & Tourism Education
Recent Awards and Accolades
Travel Industry Awards
American Automobile Association (AAA)*
• Four Seasons received more AAA five dia-
mond awards (22 hotels in 2008) each year
for the past 21 years than any other hotel
company.
• Received five diamond awards for restau-
rants (5 restaurants in 2008)
Consumer Surveys
Travel & Leisure*
• Four Seasons hotels ranked in the top 100
by readers (2007)
Zagat Surveys (2008)*
• Top large hotels (6 hotels)
• Top Resorts (6 properties)
• Top Spas (4 properties)
Lifestyle publications Listings
Andrew Harper's Hideaway Report*
• Six hoteis listed amongst the best city hotels
(2008)
• Two resorts listed amongst the top 20 resorts
(2008)
• Three hotels listed amongst the top 20 inter-
national city hotels (2008)
Travel Industry Awards
Mobil Travel Guide*
• Ten hotels received Mobil five star award
(2007)
Notable Quotes
"Revered across the globe as a gold-plated hotel
chain, the Four Seasons name is a byword for
iuxury, grandeur, and above all, service." Emir-
ates, Portfolio Magazine (exclusive to Emirates
First & Business Class Passengers) October/
November 2007
Conde Nast Traveler *
• Eighteen hoteis ranked in the top 100 list
(2006)
• Three hotels ranked as the top 100 mainland
US hotel, top 100 Middle East hotels and
amongst the top 20 Hawaiian Resorts.
• Two hotels listed amongst 2007 "hot list" of
new hotels.
49
tively involved in the day to day operation of the company since
its inception, the brand has been intricately connected with his
name. As such, as he entered the twilight of his brilliant career,
he did not want the value of the brand or its brand equity to
suffer or diminish. Instead, at age seventy-five, he set in motion
a series of succession planning events that will ensure that the
company remains vibrant and viable long after he retires. The most
important step was changing the business form from public to pri-
vate and selling ownership interests to stable and secure parties.
In April 2007, the board of directors of Four Seasons, at
the request of Mr. Sharp, approved the sale of the company to
Cascade Investments, L.L.C. (an entity owned by William (Bill)
H. Gates III), Kingdom Investments (a company owned by a trust
created by His Royal Highness Prince Alwaleed Bin Abdulaziz
Alsaud for the benefit of HRH Prince Alwaleed and his family)
and Isadore Sharp. The company was sold for between $3.4 and
$3.8 billion. Under the terms of the sale agreement, Mr. Sharp
and his family will receive in excess of $285 million. His family
will retain at least 10% interest in the company and Mr. Sharp
will remain chairman and Chief Executive Officer. Although the
sale of the company might have fetched more on the open mar-
ket, it was important for Mr. Sharp to instill an ownership that
would remain with the company over the long term. Hence, his
decision to sell to Cascade Investments, L.L.C. and Kingdom
Investments. The owners of both companies have the necessary
financial resources to ensure continuity. In addition, the owners of
both companies are successful entrepreneurs, just like Mr. Sharp.
The sale of the company was revolutionary in that the
company's business form changed from a public company to a
private company, just as it was at its inception in 1960. This
structure will therefore enable the company to gain the level of
autonomy it requires to follow the direction it deems necessary
for strategic growth. Importantly as well is that, despite the fact
that the avenue for public equity funding is lost, access to capi-
tal is not since the current ownership, have combined wealth
that exceed $75 billion (Forbes.com, 2008). In fact, the sale of
the company assured Mr. Sharp that the company would continue
after he exits the company. He understands that at 75, and well
into the twilight of his career, the strategic goals and interest
of the company was important. In fact, he noted that, "....at
this stage in my career, time will tell how long I stay active,"... "If
something happened to me, it would be a shock. But now we know
nothing's going to happen to the company." (Higley, 2007, pg. 20).
In terms of leadership, all indications are that Mr. Sharp has
carefully groomed his successors to manage the company. While
the future is unknown, all indications are that as Mr. Sharp rides
off into the sunset, the company will be in the capable hands
executives such as Kathleen Taylor, Chief Operating Officer, and
50
Jim Fitzgibbon who have both worked under the tutelage of Mr.
Sharp since 1989 and 1976 respectively.
In terms of growth, the company plans to double the num-
ber of properties it currently manages within the next ten years.
In this regard, the company will continue to seek growth op-
portunities in North America as well as the Asia-Pacific region,
Africa and South America. With the average age of management
contracts exceeding fifty years, and with thirty new hotels under
development, the company all indications are that the company
will be around in the foreseeable future. In addition, with the
new ownership structure, the company's and Mr. Sharp's legacy
as a premier hotelier is virtually assured. At the time of the
writing of this article, Mr. Sharp did not announce any change in
business strategy and direction. Further, he did not express any
indications of stepping down from the leadership of the com-
pany. In fact, all indications are that he will continue to lead the
company since he enjoys his work and has surrounded himself
with "...people who are bright and have a great sense of hu-
mor..." (Higley, 20), and who continue to make his work rewarding.
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Volume 20, Number 2
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