Analysts Expect Bidding War for Four Seasons Hotels Chain

An effort by founder Isadore Sharp to find a buyer for Four Seasons Hotels Inc. is expected to spark a bidding war among industry heavyweights seeking to boost their presence in the luxury lodging market.

Potential suitors for the Toronto-based company include ITT Corp., Marriott International Inc. and cash-rich Asian firms such as New World Development Co., analysts say.

However, any bid will have to meet stringent conditions set by Sharp, who holds a controlling stake in the firm he founded 34 years ago.

Sharp said over the weekend that he planned to sell the luxury worldwide hotel chain.

“With the rise in strategic acquisitions in the industry, this will attract global interest,” one analyst said, noting a recent bidding war between ITT and Forte of Britain over Cigahotel’s 35 luxury hotels.

ITT is in final talks to buy Cigahotels for a reported $560 million to expand its Sheraton lodging business in Europe. Analysts say Sheraton wants to build its image in the upscale market and might see Four Seasons as a good fit.

Four Seasons, which acquired Regent International Hotels Ltd. of Hong Kong last year, owns or operates 44 hotels in 19 countries.

The most prominent Four Seasons locations include New York, London, Milan, Hong Kong, Bali, Sydney and Tokyo.