Rocco Forte plans five new hotels as Saudis invest £1.4bn in luxury chain

Saudi Arabia’s Public Investment Fund acquires a significant stake in Rocco Forte Hotels, fuelling expansion plans across Europe. Read more: Rocco Forte plans five new hotels as Saudis invest £1.4bn in luxury chain

Sep 1, 2024 - 07:09

Rocco Forte plans five new hotels as Saudis invest £1.4bn in luxury chain

Saudi Arabia’s Public Investment Fund acquires a significant stake in Rocco Forte Hotels, fuelling expansion plans across Europe.

Sir Rocco Forte is set to develop five new luxury hotels in Europe after Saudi Arabia’s Public Investment Fund (PIF) acquired a 49% stake in Rocco Forte Hotels, valuing the company at £1.4 billion.

The investment has boosted the hotel group’s expansion ambitions but has also impacted the broader Forte group’s profitability.

Financial statements for the year ending April reveal that UK revenues for the group grew to £67.6 million, up from £62.4 million, while overseas revenues increased to £223.4 million from £209.8 million. Overall, total revenue climbed by 6.3% to £311.9 million, with room occupancy rising slightly to 59.9%.

However, revenue from the group’s two Russian properties, the Angleterre and the Astoria in St Petersburg, fell slightly to £20.8 million. Despite this, the company expressed confidence in its ongoing performance, noting: “There was revenue growth in each geographic region, building further on the strong growth recorded in the prior year. The group is committed to ensuring that its hotels remain leaders in their cities.”

The new developments include two properties in Milan—Carlton and Rocco Forte House—along with new hotels in Porto Cervo, Sardinia, Palazzo Castelluccio in Noto, and Palazzo Sirignano in Naples. The expansion builds on Sir Rocco’s strong family ties to Italy and reinforces the group’s presence in key European markets.

Forte, 78, continues as executive chairman alongside his sister Olga Polizzi, 77, who remains deputy chairman. His children, Charles, Lydia, and Irene, also hold key roles in the business. The group was originally founded by Forte and Polizzi in 1996 following the hostile takeover of their former family business by Granada.

Despite the PIF’s substantial investment, the Forte family retains a majority stake in the company. The deal included issuing £82 million in new equity and saw the exit of Italian investment firm CDPE from its stake in the hotel group.