CORRECTION/Four Seasons Hotels Inc. reports asset dispositions.

TORONTO--(BUSINESS WIRE)--Dec. 15, 1995--FOUR SEASONS HOTELS (TSE, ME: FSH)

- Two Asset Sales Closed - Management to Be Retained - Debt to Be Reduced by $40 Million - $95 million Non-Cash Provision Taken against certain

Leasehold Interests

Four Seasons Hotels Inc. today reported that it has substantially completed its previously announced asset disposition programme with the sale of its 50 percent interest in the Four Seasons Hotel London and its interest in the Four Seasons Biltmore Resort Santa Barbara, netting over $40 million of cash for corporate debt reduction and eliminating approximately $29 million of guarantees relating to the Santa Barbara property debt. In keeping with its strategic focus on hotel management, Four Seasons will continue its long-term management arrangements relating to both hotels. Additionally, the Company expects to close the sale of the Inn on the Park Toronto in the coming weeks and relinquish management.

Isadore Sharp, Chairman and Chief Executive Officer, said, "The asset sale disposition programme will have resulted in the sale of seven real estate investments, thereby accomplishing our key financial objectives of significantly reducing total debt and eliminating the majority of our annual funding requirements relating to real estate interests. Moreover, the fundamentals of the Company remain strong. Debt has been reduced by approximately $140 million in the last two years. Operating cash flow available after capital spending requirements is expected to generate $20 to $25 million for further debt reduction in 1996. Even now, our cash available for debt service is almost 2.6 times our required debt service, representing a significant achievement from where we were two years ago."

The Company also announced that it will be taking a charge of approximately $95 million in the fourth quarter ending December 31, 1995, against the book values of its leasehold positions in Vancouver, Toronto, and The Pierre in New York City, as well as certain other non-material real estate investments.

"With regard to the significant leasehold interests in Vancouver and The Pierre in New York, we were engaged in very difficult negotiations with both landlords throughout 1995 with limited success. Moreover, we found when trying to sell Vancouver, that leaseholds of this type are not marketable." Mr. Sharp said. "Although our negotiations with the landlords are expected to continue through 1996, we have determined it would not be in our best interests to renew these leases beyond their initial terms (New York in January 2002, and Vancouver in December 2000) without major economic adjustments. The current book values of these assets could not be realized based upon the existing leases. Because the restructuring may not be possible and we may leave, we made our decision to take the charge now. At the same time, we reviewed our investment in the Toronto leasehold. In view of the lack of liquidity for leasehold interests generally, and our ongoing discussions with the landlord concerning the treatment of certain capital expenditures, we decided to take a similar although partial provision there as well."

"The asset valuation provision has no cash effect on the Company, and puts behind us the last historic elements of the Company's real estate exposure. We can now concentrate our resources on the growth of our highly profitable hotel management business which has almost tripled in size over the past three years."

The Company's 50 percent interest in the Four Seasons Hotel London, which has been for sale since the end of 1993, was sold to a company controlled by His Royal Highness Prince Al Waleed Bin Talal Abdulaziz Al Saud, a 26 percent shareholder in Four Seasons Hotels Inc. The purchase price of 30 million sterling pounds (17.5 million sterling pounds in cash and 12.5 million sterling pounds by way of a cash flow note) was arrived at after an extensive marketing period and a third party appraisal process. The purchase price represents less than 15 percent of the Company's market capitalization. The loss of London's operating earnings are expected to be more than offset by lower net interest costs and current income tax savings.

Total debt has declined from a peak level of almost $380 million in June 1994 to approximately $240 million (total debt, net of cash available for future debt repayments) estimated for December 31, 1995, a total reduction of over $140 million from asset sale proceeds and cash generated from operations. Approximately $86 million of Canadian public bonds, which mature in March 1996, will be repaid from cash reserves and funds available under the Company's operating facility which the Company's principal banker recently agreed to extend to March 31, 1998.

The Board of Directors of Four Seasons Hotels Inc. today declared a semi-annual dividend in the amount of 5.5 cents per share on the Multiple Voting Shares and Subordinate Voting Shares for the period ending on December 31, 1995. The dividend will be payable on January 15, 1996 to shareholders of record at the close of business on December 29, 1995.

Four Seasons Hotels and Resorts, together with Regent International Hotels, is the world's largest operator of luxury hotels. Upon completion of properties under construction or development, Four Seasons and Regent will have 50 hotels operating in 22 countries. The Corporation currently owns and/or operates 38 Four Seasons and Regent hotels and resorts.

CONTACT: Douglas L. Ludwig, 416/441-4320