Little Too Close For Comfort

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When the five-star Beverly Wilshire was branded a Four Seasons hotel in 2006, the five-star hotel nearby – Four Seasons Hotel Los Angeles at Beverly Hills – was none too happy.

The hotel claims Toronto-based Four Seasons Hotels Ltd. signed an agreement promising not to open, own or operate another Four Seasons hotel in an eight-mile radius.

The two hotels are only one mile away from each other, which is close by Four Seasons standards. The only other cities in the world with more than one Four Seasons hotel are London and Tokyo; in those cities, they are at least five miles apart.

Now the Four Seasons Hotel and the Canadian company are set to battle it out in federal court. Earlier this month, a trial date was set for next year. The hotel is seeking damages and demanding that the Four Seasons label be dropped from the Beverly Wilshire.

Alan X. Reay, president of Irvine-based Atlas Hospitality Group who’s not involved in the dispute, said he’s not surprised the Four Seasons Hotel is putting up a fight.

“Obviously the owner has invested a tremendous amount of money to keep the property up to the standards of the Four Seasons,” Reay said. “With that, hotels will typically be promised exclusivity.”

Without exclusivity, the Four Seasons Hotel has a lot to lose. The hotels are listed next to each other on the Four Seasons reservation website, and Reay said loyal Four Seasons customers are not accustomed to having to choose between such similar locations.

“It creates confusion in the marketplace,” he said.

While the original Four Seasons Hotel Los Angeles claims to be “at” Beverly Hills, it is outside city limits. The Beverly Wilshire, however, is in the heart of the gilded city. As such, the 1928 Beverly Wilshire, with frontage on Rodeo Drive and loads of celebrity history, could have a better position.

Reay said he thinks the original Four Seasons Hotel has reason to fear losing market share to the Beverly Wilshire.

“The Beverly Wilshire can actually capitalize on the fact that it’s in Beverly Hills,” he said. “I think there’s no question that would have an impact on the Four Seasons Los Angeles.”

Beverly Hills Councilman Barry Brucker said he thinks the Four Seasons Hotel Los Angeles is poaching the Beverly Hills name.

“I think it’s terribly disingenuous on their part, given that they’re not located in Beverly Hills,” he said. “It was very clear they moved one block outside the city, yet they were trying to capitalize on the good name of Beverly Hills. Their guests believe they’re staying in Beverly Hills when, in fact, they’re not.”

Hotel managers and lawyers for both parties declined to comment.

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