Saudi Arabia’s Public Investment Fund has acquired a significant stake in Rocco Forte Hotels, propelling the group’s expansion across Europe.
The substantial investment has invigorated the hotel group’s ambitious expansion plans, although it has also affected the broader Forte group’s profitability. Financial statements for the year ending April reveal that UK revenues for the group increased to £67.6 million from £62.4 million, while overseas revenues rose to £223.4 million from £209.8 million. Overall, total revenue climbed by 6.3% to £311.9 million, and room occupancy experienced a slight increase to 59.9%. However, revenue from the group’s two Russian properties, the Angleterre and the Astoria in St Petersburg, declined marginally to £20.8 million.
Despite this, the company remains confident in its ongoing performance. The group noted: “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. This expansion underscores Sir Rocco’s strong family ties to Italy and bolsters the group’s presence in crucial European markets.
Sir Rocco Forte, 78, continues to serve as executive chairman, with his sister Olga Polizzi, 77, remaining as deputy chairman. His children, Charles, Lydia, and Irene, also hold essential roles within 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 substantial investment from the Public Investment Fund, the Forte family retains a majority stake in the company.
The deal also entailed the issuance of £82 million in new equity and marked the exit of the Italian investment firm CDPE from its stake in the hotel group.
The acquisition by Saudi Arabia’s Public Investment Fund marks a pivotal moment for Rocco Forte Hotels, facilitating its strategic expansion across key European locations while maintaining strong family leadership and majority ownership.