EXHIBIT 99.1

[FOUR SEASONS LOGO]                                                         NEWS

                              FOUR SEASONS REDEEMS
                          LIQUID YIELD OPTION(TM) NOTES


SEPTEMBER  24, 2004 - TORONTO,  CANADA - FOUR  SEASONS  HOTELS INC.  (TSX SYMBOL
"FSH";  NYSE SYMBOL "FS") today announced that it has redeemed all of its Liquid
Yield Option(TM)  Notes ("LYONs") due 2029 (Zero Coupon --  Subordinated:  CUSIP
35100EAD6)  on September  23, 2004 for  US$328.73  cash per  US$1,000  principal
amount at maturity  (the  redemption  price being the issue price plus  interest
that is accrued but unpaid to but excluding September 23, 2004) for an aggregate
payment of US$215,450,957.

In accordance  with Canadian  generally  accepted  accounting  principles,  Four
Seasons will allocate the consideration  paid on the redemption to the liability
and equity  components  of the LYONs based on their  relative fair values at the
date of redemption.  Four Seasons  anticipates  that it will recognize a pre-tax
accounting loss of approximately  $14.6 million related to the debt component of
the LYONs  (representing  the difference  between the carrying value of the debt
component and the relative  fair value of the debt  component - estimated at the
present value of the amount due on maturity,  using an assumed 25-year  interest
rate of 8.474% per annum, compounding semi-annually). This loss will be recorded
in the  statement  of  operations  of Four  Seasons  in its  third  quarter.  In
addition,  Four Seasons  anticipates that it will recognize a pre-tax accounting
gain on the extinguishment of the equity component of the LYONs of approximately
$8.1 million.  This gain will be recognized in contributed  surplus in the third
quarter.  The net impact on shareholders'  equity from the extinguishment of the
debt and equity  components  of the LYONs is  anticipated  to be a reduction  of
approximately $6.5 million.

All dollar  amounts  referred to in this news  release  are in Canadian  dollars
unless otherwise noted.

With a history  spanning  four decades and a portfolio  that extends  worldwide,
Four  Seasons  Hotels and  Resorts is the  world's  leading  operator  of luxury
hotels, currently managing 64 properties in 29 countries.

This news release contains  "forward-looking  statements"  within the meaning of
federal  securities laws. These statements  concern  anticipated  future events,
results,  circumstances,  performance  or  expectations  that are not historical
facts. These statements are not guarantees of future performance and are subject
to numerous risks and uncertainties that can affect our actual results and could
cause our actual results to differ materially from those expressed or implied in
any forward-looking  statement made by us or on our behalf. These statements are
made as of the date of this news release and,  except as required by  applicable
law, we undertake no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.

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CONTACT:   DOUGLAS L. LUDWIG
           CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT
           (416) 441-4320

           BARBARA HENDERSON
           VICE PRESIDENT TAXATION AND INVESTOR RELATIONS
           (416) 441-4329