The expansion of Rocco Forte Hotels receives a major boost from a significant Saudi investment, fueling plans for new European locations.
- Rocco Forte Hotels has reported notable revenue growth despite challenges in certain regions.
- The company plans to open five new hotels, strengthening its presence in key European markets.
- Despite the large Saudi investment, the Forte family retains control over the business.
- The expansion is built upon the company’s existing strong ties to Italy and other European areas.
The recent Saudi investment has played a pivotal role in Rocco Forte Hotels’ ambitious expansion plans. Saudi Arabia’s Public Investment Fund’s involvement has not only provided financial backing but has also catalyzed the addition of five new properties across Europe. This marks a significant step in growing their already established luxury hospitality brand.
Financially, the group has exhibited robust growth, with UK revenues climbing from £62.4 million to £67.6 million and overseas revenues increasing from £209.8 million to £223.4 million. The overall revenue saw a 6.3% rise to £311.9 million, resulting in a slight increase in room occupancy to 59.9%. However, their Russian properties recorded a minor decline, with revenue dropping to £20.8 million.
The new hotel developments in Milan, Porto Cervo, Noto, and Naples symbolize the company’s strategic focus on Europe. These additions capitalize on Sir Rocco Forte’s familial and historical ties to Italy, reinforcing the group’s influence in these key markets. Despite the significant infusion from the Saudis, the Forte family maintains the majority stake, ensuring that strategic decisions align with the family’s vision.
Rocco Forte Hotels continues under the leadership of Sir Rocco Forte as executive chairman, supported by his sister Olga Polizzi and his children, who occupy vital roles within the company. This leadership structure ensures continuity in management and upholds their commitment to being market leaders in hospitality within each city they operate.
Even with the Saudi investment, which included an £82 million new equity issue, the family preserves its control. The previous Italian investor, CDPE, has exited the company, affirming the Forte family’s dominance in the business’s decision-making process.
Rocco Forte Hotels’ expansion, bolstered by strategic Saudi investment, reaffirms its growth and leadership in the luxury hospitality sector.
