Is four seasons publicly traded

Four Seasons generally operates as a hotel management company, although it includes fractional ownership in its Residence Clubs and earns most its income through its management operations as of 2005 (Four Seasons, 2005). The Four Seasons’ mission statement reflects its core values as offering exceptional experience as a “premier luxury hospitality company” while implementing strong financial planning and ethical treatment of their guests, customers, employees, and other stakeholders (Four Seasons Holding Inc, n.d.). While the company maintains properties in both urban and rural locales, the Langkawi, Malaysia resort is located on a picturesque archipelago surrounded by numerous historical, cultural, and natural attractions while providing seclusion for its guests. From 2000 to 2003, there was a global depression in tourism due to world health and political instability across the globe (Four Seasons, 2005). The company also had acquired long-standing management contracts with the Regent hotels and was managing its Kuala Lumpur property in 2005 (Four Seasons, 2005). When the resort opened in 2005, it was still publicly traded, although both Bill Gates and Prince Walid bin Talal’s Kingdom Holding Company were major shareholders at the time (Segal, 2009).

The company’s overall entry strategy includes accepting capital investments only to retrieve “long-term management contracts in key destinations” (Four Seasons, 2005, p. 15). As stated by the company, “Owners of properties that we manage are contractually responsible for funding the capital requirements of the properties, including guest room and common area renovations, and for maintaining capital reserves to fund ongoing annual maintenance capital expenditures required by the management agreements” (Four Seasons, 2005, p. 16). The company initially entered Malaysia with its contract with the Regent hotel in Kuala Lumpur. While this hotel is no longer listed on its website, it served as its initial entry to the country. Overall, its entry strategy and continued business in the country is both in keeping with its typical practices and delivers the advantages of a non-equity strategic allowance that allowed the company to gain experience in managing properties within the country.

Four Seasons does face steep competition for luxury hotels based in exotic locations in Malaysia. The Datai Langkawi is offered in the same area, with similar options (The Datai Langkawi, n.d.). There is also the Guyana Eco Resort in Borneo that offers picturesque packages to explore marine life and surrounding landscape (Guyana Eco Resort, n.d.). These options may not carry the name recognition of the Four Seasons brand, but both offer attractive packages at a fraction of the cost when searching booking websites.

Structure

Four Seasons Hotels Ltd. Organizational Chart

Four Seasons Hotels utilizes a relatively flat organizational structure for its management team. The advantages of this system for this multinational hotel giant are that it allows them to strategically manage each of the sectors of their operations with a direct president of vice president, based on geographical region or by overall function. Each region: Americas, Europe/Africa/Middle East, and Asia Pacific has different challenges whether politically or economically, so by having a head of every area in which the company operates, it allows them autonomy to operate as a “mini-CEO” in some regards. There are fewer lines of management that can clutter the message or delay construction of properties and relationships with their partners. Four Seasons is also able to have one dedicated expert, the respective Presidents of Continental Hotel Operations, who is responsible for their own team of financial analysts, marketing staff, and hospitality consultants. As the company grows its property portfolio in each region they can also expand their staff under each of the regional presidents. Four Seasons Hotels has a long-term strategic focus on promoting their senior managers from within the ranks of the company and fostering growth internally (Four Seasons Press Room, 2016). Compared to other organizational structures, the flat organizational chart allows for greater adaptability and efficiency, eliminating “two manager” scenarios and also encouraging independence of managers. This structure helps prepare the future leaders of the company, as their policy is to promote from within, rather than seek external senior leadership, whenever possible.