Kingdom Holding concludes selling half of its stake in Four Seasons hotels

Kingdom Holding Co. said it had concluded selling half of its shares in Four Seasons hotels and collected cash proceeds of SR8.29 billion ($2.21 billion) from the sale, according to a bourse filing.

The company, known as KHC, said the expected gain of SR5.9 billion will be recognized in the first quarter of 2022.

KHC will retain a 23.8-percent stake in Four Seasons Holding Inc. by one of its affiliate Kingdom Investment Co.

The company’s decision to sell half its shares in the Four Seasons hotel chain to Bill Gates’ Cascade Investment LLC was taken to generate a return for investors, CEO Talal Al-Mayman said in an interview with Al Arabia last Septmber.

The proceeds from the deal will be used to make fresh investments, increase KHC’s positions in some of its existing investments, and pay down some debt, he said.

The transaction values Four Seasons at $10 billion. Cascade’s stake will increase to 71.25 percent.

Four Seasons was taken private in 2007 in a deal led by Cascade and Kingdom Holding, the company founded by Saudi billionaire Prince Alwaleed bin Talal. The new owners invested in the company’s expansion, opening properties in new markets and capitalizing on a boom in luxury travel.

Four Seasons managed 74 hotels when Cascade and Kingdom Holding took it over and now operates 121 properties, with a further 50 under development. It has also expanded its business into real estate, putting its name to luxury homes and communities.

Other recent deals by Kingdom Holding include a $270 million stake in music streaming service Deezer and the sale of its holding in Rotana Music to Warner Music Group in February 2021.