Four Seasons eyes FX hedge and Mideast

The Toronto-based luxury hotelier cited currency fluctuations as one reason for a bigger-than-expected loss posted in the third quarter. In previous quarters this year, profits either shrank or fell below expectations.

"Our corporate costs escalated over these last few years. But that's a short-term problem that will straighten itself out," Four Seasons chairman Isadore Sharp said in an interview in Dubai, where the group won a new management deal.

The Canadian dollar has been one of the strongest performing currencies in the world this year and its rise against the U.S. dollar hurt Four Seasons.

"Devaluation of the U.S. dollar has really affected us," said Sharp.

"We are not hedging at this point. It's not a cash loss, it's a book loss. I think we will work out a hedging system for our corporate costs because they are in Canadian dollars."

Four Seasons has won a contract to manage a new leisure and residential property in Dubai's $10 billion Festival City development and is working on a new hotel in Bahrain.

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Source - Reuters


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