The Four Seasons Hotel in Vancouver Is Being Sued. Here’s Why

Well, this is interesting. It was brought to my attention by one of our readers that The Four Seasons Hotel Vancouver is being sued by Cadillac Fairview, the hotel’s current landlord. As per the court documents filed on October 20th, 2017, Cadillac Fairview is claiming (in part) that The Four Seasons has breached the terms of their lease agreement by not maintaining the hotel to a standard consistent with other luxury hotels, and that the property is uninviting, dated, and tired with low quality furnishings and equipment.

Let me preface this commentary by saying I’m not a lawyer, or a landlord, or a lease expert, but rather a very curious Four Seasons fan who happens to agree (at least partially) with what Cadillac Fairview is claiming. I’ve stayed at The Four Seasons Vancouver several times, along with some of their other properties around the world. I’ve also stayed in some of the other luxury hotels in Vancouver they compare the property with, and wanted to provide some insight.

Claim By The Landlord

First, let’s start with the details. I won’t copy and paste the entire claim by Cadillac Fairview, but will summarize a few of the key points. Essentially, the landlord is claiming:

• On June 22, 2015, the landlord discovered that Four Seasons Hotels had breached and was in default of the lease since Four Seasons Hotels had failed to furnish and equip the hotel in accordance with the standard of a typical first-class luxury hotel.

 

• As of June 22, 2015, Four Seasons Hotels had furnished and equipped the hotel below the standards of a typical first-class luxury hotel by comparison to, among other things, first-class luxury hotels in Vancouver, including the Rosewood Hotel Georgia, Shangri-La Hotel, Fairmont Pacific Rim and Fairmont Waterfront.

 

• Four Seasons Hotel Vancouver had furnished and equipped the hotel in an inconsistent and uninviting manner, with an overall appearance that was tired, dated, and not in keeping with typical first-class luxury hotels.

 

• Certain public areas in the hotel have been neglected and had not been updated for over 40 years.

 

• Four Seasons Hotel Vancouver had furnished and equipped the hotel in a manner that was below the “Four Seasons” standards and inconsistent with the “Four Seasons” brand and image.

Four Seasons Hotel Vancouver Response

What did Four Seasons have to say about these claims? In a response submitted December 5th, they say:

• They have maintained, equipped and furnished the hotel consistently in a way that satisfies the terms and conditions of the lease, and that the landlord has been aware of the hotel condition throughout the entire lease, and they didn’t just ‘discover’ all of this in 2015.

 

• The landlord’s claim is using subjective language, such as ‘inconsistency’, ‘uninviting’ or ‘overall conditions’

 

• The properties they are comparing the Four Seasons with were constructed 15-34 years after the lease was entered into, and two of them are significantly smaller than the Four Seasons, and the lease does not specify or require the Four Seasons to comparable properties in Vancouver, or in a manner consistent with ‘Four Seasons’ standards, branding, or image.

 

• The Four Seasons Hotel Vancouver has performed well, and was recently awarded Four Diamonds by the AAA/CAA and was one of only six Canadian hotels, and one of only two hotels in the city of Vancouver, to be awarded a Five Star rating by Forbes.

 

• The original claim is an attempt by the landlord to reformulate the terms of the lease to seek to obtain a multi-million dollar capital improvement to which they aren’t entitled. This capital investment would come just two years before the end of the current lease (expires January, 2020) which would only benefit the landlord and any future tenants of the landlord.

In Summary

Essentially Cadillac Fairview is saying The Four Seasons has failed to maintain standards consistent with other luxury hotels, including comparable first-class luxury hotels in Vancouver, along with other Four Seasons properties around the world. They are seeking a multi-million dollar capital investment by Four Seasons to bring the property up to these standards, and would like them to do it before their lease expires, in two years. 

Four Seasons is saying their hotel is furnished and equipped in a manner that satisfies the terms and conditions of the lease agreement and that the landlord has known about the condition of the hotel throughout the lease. Furthermore, the hotel performs well, and has been awarded several prestigious awards by recognized travel services. They respond that the claim is only an attempt to seek a multi-million dollar capital investment prior to the lease expiry which would benefit only the landlord and any future tenants of the landlord (Admittedly, the timing of this lawsuit is a bit suspect in my opinion, with the President of Marriott recently saying they would like to expand further in Vancouver with the addition of a Ritz-Carlton or W Hotel in the future).

My Thoughts

I want to break this down as objectively as possible. Four Seasons is one of my favourite hotel brands in the world, but I do agree the Vancouver property is a bit of an anomaly. I’ve stayed there more than once, and have the following to say about the property:

• The service is consistently excellent, and completely aligned with any other Four Seasons property I’ve visited
• The room design is dated in comparison to newer properties and other Vancouver luxury hotels. This is most evident in the bathrooms, which are amongst the worst I’ve experienced (not even as good as new Sheraton or Marriott properties)
• The furniture and equipment in the room seems to be of high-quality, though somewhat understated in design, and not modern or contemporary
• The bed/linens/pillows are comfortable and high quality, and what I would expect to find in any Four Seasons Hotel
• The common spaces are elegant and luxurious, though the flooring does indeed seem 40 years old

A Comparison With Other Vancouver Properties

A large part of the claim by Cadillac Fairview is that The Four Seasons is no longer competitive with the other luxury hotels in Vancouver. While I would agree with that statement, I would also point out that The Pacific Rim and Shangri-La are new construction, while the Rosewood changed management/ownership and underwent an extensive multi-year renovation. Let’s see a side by side photo comparison between the Fairmont Pacific Rim, The Rosewood Hotel Georgia, and The Four Seasons Vancouver.

The Room – Four Seasons Vancouver

The Four seasons room is elegant and understated. I once compared it to Lufthansa first class, whereas the Fairmont Pacific Rim is more flashy, like Emirates first class – both good, but so different.

The Room – Fairmont Pacific Rim

The Pacific Rim is everything The Four Seasons is not – contemporary, chic, trendy. While the style was certainly groundbreaking 10 years ago, the design is starting to show it’s age and is starting to feel beyond it’s prime.

The Room – Rosewood Hotel Georgia

We’ve only stayed in suites on our visits to The Rosewood Hotel Georgia, but the styling is similar throughout the different room categories. In my opinion, this is the nicest room, with timeless styling that will likely not require significant updates for years to come.

The Bathroom – Four Seasons Hotel Vancouver

Yikes. This is where The Four Seasons Hotel Vancouver really takes a hit. I’m someone who really appreciates a nice hotel bathroom, having a fairly strict rule that it must be nicer than my own bathroom at home. Most of the guest rooms feature the same tired design, with a shower/tub combo, non-partionated toilet, and low ceiling. Nothing about this bathroom is acceptable for a luxury hotel which really highlights the age of the building.

The Bathroom – Fairmont Pacific Rim

Even the mot basic room at the Pacific Rim features large walk-in rain shower, separate deep soaking tub and water closet with toilet. The marble use is extensive and gorgeous, and amenities are by Le Labo. Unlike the rooms, I suspect these bathrooms will age well. Marble never really goes out of style.

The Bathroom – Rosewood Hotel Georgia

The winner again, this bathroom is everything you need. Enormous free standing soaker tub, large walk-in shower, double vanity, separate water closet, and floor to ceiling marble with heated floors.

The Common Spaces – Four Seasons Hotel Vancouver

There are certainly aspects of the common areas that seem 40 years old, but overall I think the hotel has done a good job at embracing it. The lobby is beautiful, the hallways are fresh and clean, and the fitness centre and pool are highlights of the property.

The Common Spaces – Fairmont Pacific Rim

The Pacific Rim does have beautiful common spaces, but the lobby can feel like a bar at night (which may or may not appeal). Also, the area between the lobby and elevators has had a fishy smell for a couple of years which management seems to have no solution for. The fitness centre is world-class, though the outdoor pool area is small and service is spotty. During warm summer months the pool area is packed.

Common Areas – Rosewood Hotel Georgia

Stunning common areas throughout this property, from the lobby and hallways to the pool area, it’s quite obvious this hotel underwent a major renovation and no detail was overlooked.

Clearly The Four Seasons Hotel Vancouver isn’t as nice as The Rosewood Hotel Georgia or Fairmont Pacific Rim on the surface. I would argue that the service level is more personalized at The Four Seasons, though that doesn’t seem to be part of the landlord’s complaint. However, saying the Four Seasons isn’t a first-class luxury property is a bit of a stretch. It has all the ingredients, just maybe not the freshest ingredients.

Comparison With Other Four Seasons Properties

How does the Four Seasons Hotel Vancouver compare with other Four Seasons properties around the world? Well, it doesn’t really. The Vancouver property has long been a standout (negatively) to loyal Four Seasons guests, with many of the other properties beyond what you would expect in a luxury hotel. Here are a few pictures from some of the other properties I’ve stayed at, including The Four Seasons Hotel Jakarta, The Four Seasons Hotel Shanghai Pudong, and The Four Seasons Resort and Residences in Whistler.

Bottom Line

I will be watching this case closely, as I’m very curious to see the results. While I don’t disagree with Cadillac Fairview that The Four Seasons is not the best first-class luxury hotel in Vancouver, and I would love to see some updates to one of my favourite hotels in my favourite city (especially the bathrooms), I don’t think the landlord can argue that The Four Seasons has breached it’s contract by not maintaining standards consistent with other luxury hotels. While not flashy, modern, or cutting edge, this hotel is certainly a 5-star property. Furthermore, based on my research, the property consistently has high occupancy rates, though I guess it’s not the clientele Cadillac Fairview is hoping to attract to the Pacific Centre shopping mall, which could be what’s motivating this claim.

Anywhere around the world the most prestigious shopping centres will be attached to the best hotels. This is true in Singapore, Hong Kong, Beijing, and Shanghai, amongst other global destinations. This makes sense. Landlords want to attract the best retailers and charge a premium lease, and to do that they often have the best hotels attached to or near the mall where all of the wealthy visitors stay. My guess it that rich tourists are opting to stay at the other properties in Vancouver, which are located away from Pacific Centre (arguably Vancouver’s premier shopping mall, directly below The Four Seasons Hotel), which is making the retail space harder to sell at a premium. If I stay at The Pacific Rim I’m probably shopping in Gastown, and If I stay at The Shangri-La I’m probably sticking to Robson street. And if I’m the business traveller or discount luxury hotel seeker, I’m probably staying at The Four Seasons Hotel Vancouver but not shopping at all.

From a business perspective, I can see why Cadillac Fairview would want a more prestigious hotel attached to their shopping mall – it just makes sense. As a frequent traveler, I would love to see the Four Seasons Hotel Vancouver completely gutted and reimagined, as I really stand behind Four Seasons as a true, world-class luxury hotel brand. However, I just don’t see the case being made here.

My best guess on how this plays out? I think in 2020 we will see the departure of The Four Seasons Hotel Vancouver from their current location. The hotel underwent a multi-million dollar ‘refresh’ not too recently, though I think management has had their eyes set on moving knowing the limitations in renovating such an old building, and don’t want to invest any additional capital knowing they will be vacating the current building within a few years. Cadillac Fairview probably envisions a large, dated, tough to market hotel building on their horizon, and is hoping to get Four Seasons to spend some money for their next tenant before the lease expires.

I’ll keep you updated on any news related to this lawsuit. It will be very interesting to see how it plays out before the courts.

What do you think of the lawsuit by Cadillac Fairview? Do you think Four Seasons is obligated to update the hotel in keeping with other ‘first-class luxury hotels’, or do you think this is a suspect lawsuit aimed at helping the landlord better position themselves to future tenants?