Four Seasons-Regent

Abstract

When financial circumstances forced the sale of Regent International hotels, its trustees chose to sell the firm to Four Seasons hotels, selected from a number of potential suitors. The combination gave Four Seasons, which was well-known on the North American continent, an instantly expanded position in Pacific Asia, and also created the basis for expansion of the Four Seasons brand in Europe and Asia. With the combined brands, the company seeks to assert a strong market position in the luxury segment. An analysis of the firm's position against a theoretical framework indicates that Four Seasons is now situated to operate according to a global strategy, rather than its former, essentially regional approach. One aspect of the acquisition was that Four Seasons was able to create a separate partnership entity to hold Regent and Four Seasons real estate, thereby removing a drag on operating profits and turning Four Seasons into strictly a management firm.