1997 Annual Report - Four Seasons Hotels and Resorts

which, in turn, are based on assumptions regarding future economic conditions in Asia. Should the underlying assumptionschange, the estimated recoverable amounts could change by a material amount.16. S U B S E Q U E N T E V E N T:Effective January 1, 1998, the Corporation and an affiliate of Kingdom acquired the 50% ownership interest in theFour Seasons Hotel London that the affiliate did not already own. The Corporation acquired a 12.5% ownership interestin the hotel and the affiliate increased its ownership interest in the hotel from 50% (which it acquired from the Corporationin 1995 (note 4(a))) to 87.5%. To facilitate the acquisition, the Corporation invested £16.3 million, which includes anacquisition loan made to the affiliate. The loan bears interest at 10% per annum, payable out of the hotel’s cash flow, andis secured by the affiliate’s newly acquired interest in the hotel.73Four Seasons Hotels Inc.