Taj Declared New Operator of The Pierre
Four Seasons Hotels 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.