1997 Annual Report - Four Seasons Hotels and Resorts

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CORPORATE PROFILEFour Seasons Hotels Inc. operates the world’s largest network of luxury hotels and resorts: 41 mediumsizedhotels and resorts containing approximately 12,500 rooms in major business centres and keyleisure destinations in 17 countries. Another 16 properties are under construction or development innine additional countries. Four Seasons holds leases for three of these hotels and owns a minorityequity interest in, or has loans to, eight properties under its management. Four Seasons has alsoembarked on a program to develop and manage vacation ownership properties. The first vacationownership project is currently in the sales process, and two other projects are under active development.Generally identified by the brand names Four Seasons or Regent, most hotel properties occupylocations that would be extremely difficult to duplicate, in many of the world’s key business centresand exclusive resort destinations. Both brands are also widely recognized for the exceptional qualityof their guest facilities, service and atmosphere. For reasons such as these, hotels and resorts managedby Four Seasons have been named more frequently than any other competitor among the world’sbest hotels and travel experiences by Institutional Investor, Condé Nast Traveler and others.Four Seasons’ operations are supported by the efforts of a fully integrated sales and marketingorganization, including 13 worldwide sales offices and a global reservation system that permitsinternational coverage and considerable cross-selling of both brands.Four Seasons’ strategy is to offer business and leisure travellers the finest hotel and resortaccommodation in each destination it serves. Four Seasons will pursue opportunities for continuedgrowth from new hotel and resort developments and new products, such as vacation ownership, inmajor international centres and resort destinations.C ONTENTS2 Message to Our Shareholders5 Management Committee Round Table8 Four Seasons Worldwide Locations10 Financial Table of Contents11 Annual Information Form25 Five-Year Review28 Management’s Discussion and Analysis48 Corporate Information53 Consolidated Financial Statements74 Corporate Governance
FINANCIAL HIGHLIGHTS(In millions of dollars except per share amounts) 1997 1996 1995Revenues under management $ 2,119.4 $ 1,901.5 $ 1,837.9EBITDA (1) $ 78.7 $ 64.3 $ 66.7Normalized net earnings (2) $ 52.8 $ 29.9 $ 20.4Normalized earnings per share (2) $ 1.61 $ 1.04 $ 0.72Cash provided by operations $ 64.8 $ 43.7 $ 38.7Debt, net of cash $ 114.9 $ 224.6 $ 230.9EBITDA (1) coverage of net interest costs 8.8 3.4 2.6(1) Earnings before other operating items, interest and taxes.(2) Excludes the loss on repurchase of debt in 1997 and the accounting provision taken in 1995 for certain leasehold and other real estate interests.(3) All amounts are in Canadian dollars unless otherwise noted.Indexed Price Volume Graph (January 1, 1997 – March 27, 1998) Four Seasons Hotels Inc. – Limited Voting Shares Compared to TSE 300 and S&P 500Indexed Price25020015010050Jan97Feb97Mar97Apr97May97Jun97Jul97Aug97Sep97Oct97Nov97Dec Jan Feb97 98 98Mar98Four Seasons Hotels Inc.Standard & Poor’s 500 Composite IndexToronto Stock Exchange 300 Composite Index1Four Seasons Hotels Inc.
Page 1: FOUR SEASONS HOTELS AND RESORTS FOU
Page 5 and 6: Growth through selective diversific
Page 7 and 8: FOUR SEASONS MANAGEMENT COMMITTEE R
Page 9 and 10: Barbara TalbottSenior Vice Presiden
Page 11 and 12: 18212317222019252428162627673548151
Page 13 and 14: ANNUAL INFORMATION FORMB U S I N E
Page 15 and 16: Superior Hotel Operating ResultsFou
Page 17 and 18: comparable data is available, was U
Page 19 and 20: I N D U S T R YA W A R D SFour Seas
Page 21 and 22: Properties Managed by Four Seasons
Page 23 and 24: H O T E L M A N A G E M E N T O P E
Page 25 and 26: and its hourly staff varies, based
Page 27 and 28: F I V E-Y E A RR E V I E W(In milli
Page 29 and 30: S U M M A R Y H O T E L O P E R A T
Page 31 and 32: December 31, 1996 to $115 million a
Page 33 and 34: Hotel Ownership OperationsHotel own
Page 35 and 36: Minority Hotel Ownership InterestsA
Page 37 and 38: primarily by the termination during
Page 39 and 40: Income Tax ExpenseThe Corporation
Page 41 and 42: L I Q U I D I T YFour Seasons gener
Page 43 and 44: During 1997, the Corporation invest
Page 45 and 46: conditions of an agreement could re
Page 47 and 48: Investments and AdvancesThe Corpora
Page 49 and 50: investment in The Regent Hong Kong
Page 51 and 52: Edmond M. Creed, Murray B. Koffler
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C O R P O R A T EC H A R TThe follo
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CONSOLIDATED STATEMENTS OF OPERATIO
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CONSOLIDATED STATEMENTS OF CASH PRO
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NOTES TO CONSOLIDATED FINANCIAL STA
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The recoverability of the unamortiz
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4. L O N G- T E R M R E C E I V A B
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Current assets (including cash of $
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10. L O N G- T E R M D E B T:1997 1
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UnlimitedUnlimitedUnlimitedThe VMVS
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13. C O M M I T M E N T S A N D C O
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14. F A I R V A L U E O F F I N A N
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which, in turn, are based on assump
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of action that have been taken. The
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CORPORATE DIRECTORYD IRECTORSEdmond
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1997 Annual Report - Four Seasons Hotels and Resorts

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