TORONTO – Nov. 5, 2004 – Four Seasons Hotels Inc. (TSX Symbol "FSH.SV"; NYSE Symbol "FS") has reported its results for the third quarter ended September 30, 2004.

"During the third quarter, luxury travel demand continued to improve in the vast majority of our markets. We continue to achieve industry-leading RevPAR and our profit margins are continuing to improve, particularly as we realize higher achieved room rates," said Isadore Sharp, Chairman and Chief Executive Officer. "As a result of adhering to our long-term corporate strategy, we believe we are very well-positioned in this environment where luxury travel demand improvements are outpacing other sectors of the industry.

“In addition, the geographic balance of our portfolio has been and is expected to continue to allow us to capitalize on the improving travel demand that we are now seeing on a global basis."

"In keeping with our strategy, during the third quarter we completed the divestiture of our equity interest in Whistler and the majority of our investment in Amman to repatriate the capital we had invested to secure two long-term management agreements. In addition, we settled a loan to Sedona and our lease interest in Berlin was terminated, which have allowed us to divest these two targeted investments," commented Douglas L. Ludwig, Chief Financial Officer and Executive Vice President.

"During the quarter, we also redeemed the convertible notes we had issued in September 1999, allowing us to significantly lower our economic cost of debt, while also maintaining what we believe is the strongest balance sheet in the lodging industry."

"Four Seasons' growth program has excellent momentum with many great opportunities being presented to us. During this year, we have signed eleven letters of intent and opened five new properties," commented Kathleen Taylor, President Worldwide Business Operations. "We have now added Dubai, Seattle and two hotels in Moscow to our list of hotels under development. We are also extremely pleased to be returning to the Seattle market so quickly, and we believe our ability to do so is a clear demonstration of the strength of the Four Seasons brand."

2004 Third Quarter Overview

Financial Results:

- RevPAR(1) of worldwide Core Hotels(2) increased 14.6%, on a US dollar basis, as compared to the third quarter of 2003.

- Gross operating margins(3) at worldwide Core Hotels increased 230 basis points to 27.5%, as compared to the third quarter of 2003. Through the first nine months of 2004, gross operating margins increased 320 basis points, as compared to the same period last year.

- Management fee revenues (excluding reimbursed costs(4)) increased 26.8% to $36.5 million, as compared to the third quarter of 2003.

- Incentive fee revenues increased 54%, as compared to the third quarter of 2003.

- Management earnings before other operating items increased by 39.5% to $26.3 million, as compared to the third quarter of 2003.

- Management operations profit margin(5) (excluding reimbursed costs) increased 650 basis points to 71.9%, as compared to the third quarter of 2003.

- Ownership results before other operating items improved $3.1 million to a loss of $6.4 million, as compared to the third quarter of 2003.

- Earnings before other operating items increased 111.8% to $19.9 million, as compared to $9.4 million for the third quarter of 2003.

- Net losses were $11.1 million ($0.31 basic and diluted loss per share), as compared to net earnings of $4.4 million ($0.13 basic earnings per share and $0.12 diluted earnings per share) for the third quarter of 2003.

Included in the net losses are:

- Pre-tax loss related to the redemption of the Liquid Yield Option Notes due 2029 (Zero Coupon - Subordinated) ("LYONs") of $14.6 million ($0.41 per share)
- Pre-tax unrealized foreign exchange loss of $4.5 million ($0.13 per share)
- Pre-tax non-cash loss related to asset transactions of $4.6 million ($0.13 per share)

Other:

- During the quarter, we sold the majority of our investment in Four Seasons Hotel Amman, all of our equity investment in Four Seasons Resort Whistler, settled our loan receivable with respect to the proposed Four Seasons project in Sedona and terminated our lease position in Four Seasons Hotel Berlin. Combined proceeds from these transactions were in excess of $50 million and resulted in an overall non-cash loss on disposition of $4.7 million.

- We redeemed all of our LYONs on September 23, 2004 for cash of US$215.5 million ($275.7 million).

- Four Seasons Hotel Cairo at Nile Plaza opened on August 15, 2004. To date in 2004, we have also added properties in Costa Rica, Provence, Budapest and Whistler to our portfolio of hotels and resorts under management.