Sir Rocco Forte is set to develop five new luxury hotels in Europe after Saudi Arabia’s Public Investment Fund acquired a 49% stake in Rocco Forte Hotels, valuing the company at £1.4bn.
The investment has boosted the hotel group’s expansion ambitions, but has also impacted the profitability of the wider Forte Group.
Financial statements for the year to April reveal that the group’s UK revenue rose to £67.6m, up from £62.4m, while overseas revenue rose to £223.4m from £209.8m. Overall, total revenue rose by 6.3% to £311.9m, with room occupancy rising slightly to 59.9%.
However, revenue from the group’s two hotels in Russia, Angleterre and Astoria in St Petersburg, fell slightly to £20.8m. Despite this, the company expressed confidence in its ongoing performance, noting: “There was revenue growth in every geographic region, building on the strong growth recorded in the previous year. The group is committed to ensuring its hotels remain leaders in their respective 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 Serignano in Naples. The expansion builds on Sir Rocco’s strong family ties to Italy and strengthens the group’s presence in key European markets.
Forte, 78, continues as CEO alongside his sister Olga Polizzi, 77, who remains vice president. His children Charles, Lydia and Irene also hold key roles in the company. The group was originally founded by Forte and Polizzi in 1996 after a hostile takeover of their former family business by Granada.
Despite the significant investment by the PIF, the Forte family retains a majority stake in the company. The deal involved the issuance of £82m in new shares and saw Italian investment firm CDPE exit its stake in the hotel group.