The Four Seasons Hotel company posted significant losses of over 37 million dollars in the 4th quarter last year. Revenue was down 11 million dollars and writedowns of 25 million dollars added to the losses. The chain says publicly that the issues are of a short term nature, but it has to be disconcerting to the properties that they manage to see such a dramatic drop in sales in a very hot hotel market.
I have not seen their presence on the internet very often, and I am not an expert, but could the company not been adverturesome enough to engage the internet marketplace? Old line successful companies often have trouble making these transitions and it could be the undoing of such a historic enterprise.
The Toronto-based global luxury hotel operator, which reports in U.S. dollars, said Thursday its revenue was $58.5 million in the final three months of 2005, down from $69.5 million a year earlier. The net loss amounted to $1.03 per share, compared with year-ago earnings of $12.8 million, 34 cents per share.
“These unfavorable comparisons should not cloud the long-term strength of our business and our compelling industry position,” Kathleen Taylor, president of worldwide business operations, told analysts in a conference call. She defended the $25.3 million in accounting writedowns and provisions, much of which she said doesn’t reflect ongoing value.
“While we would prefer never to have writedowns on these types of assets, even given what we know today I think we would make the same investment decisions based on the total returns we expect to receive from these investments as the long-term fee streams remain intact.” via BREITBART.COM