Rocco Forte Hotels is set to expand significantly with new investments.
- Saudi Arabia’s Public Investment Fund has invested £1.4bn in Rocco Forte Hotels, acquiring a substantial stake.
- This investment will support the development of five new luxury hotels across Europe.
- The Forte family maintains a majority stake in the company despite the new investment.
- The hotel chain sees growth in revenues, although challenges remain in Russian markets.
Rocco Forte Hotels is poised for significant growth, fueled by a substantial £1.4 billion investment from Saudi Arabia’s Public Investment Fund. This strategic move involves acquiring a sizeable stake in the hotel chain, highlighting confidence in its expansion capabilities.
The investment aligns with Rocco Forte’s ambitious expansion plans, which include the development of five new luxury hotels in key European locations: Milan, Porto Cervo, Sardinia, Noto, and Naples. These new properties are expected to leverage the group’s established presence and strong family ties in Italy, reinforcing its market position.
Despite the new investment, the Forte family remains the majority stakeholder, ensuring the company’s values and strategic direction are preserved. The issuance of £82 million in new equity facilitated this transaction, which also saw the exit of the Italian investment firm CDPE from its stake in the group.
Financial statements reveal overall revenue growth for Rocco Forte Hotels, with UK revenues increasing to £67.6 million and overseas revenues climbing to £223.4 million. The group’s total revenue rose by 6.3%, reaching £311.9 million, with room occupancy slightly up at 59.9%.
However, challenges persist in the Russian market, where revenues from the Angleterre and the Astoria properties in St Petersburg saw a slight decline to £20.8 million. This is a small setback amidst broader growth, as noted by the company, which remains optimistic about future performance and market leadership.
The continuation of family leadership sees Sir Rocco Forte, 78, and his sister Olga Polizzi, 77, holding top executive roles. Their children also contribute significantly to the company’s management, ensuring a strong familial influence on operations and growth strategies.
This strategic expansion underscores Rocco Forte’s commitment to remaining a leader in luxury hospitality.
