Four Seasons Hotels Inc. has received confirmation that the
shareholders of 795 Fifth Avenue Corporation, the owner of The Pierre,
have approved Taj Hotels Resorts and Palaces as the new operator and
lessee of the Hotel. As previously disclosed, Four Seasons had been in discussions with the
landlord of The Pierre to explore alternatives through which Four Seasons’
leasehold interest in the hotel could be modified or restructured. Despite
these discussions, the parties were not able to agree on any modification
or restructuring of the lease arrangements. In recent months, the landlord
retained professional advisors to assist with the evaluation of these
alternatives, including the possibility of identifying a replacement
lessee and operator for The Pierre. Taj Hotels Resorts and Palaces was
identified through that process.
While the transition in the lease and management of The Pierre remains
subject to finalization of definitive agreements, Four Seasons anticipates
that the transition in the lease and management of the hotel will become
effective at midnight, June 30, 2005.