Rocco Forte plans five new hotels as Saudis invest £1.4 billion in luxury chains

Sir Rocco Forte is 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 had an impact on the profitability of the wider Forte group.

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

However, revenues 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 continued performance, noting: “There was revenue growth in every geographic region, building on the strong growth recorded the previous year. The group wants to ensure that its hotels remain leading 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 with Italy and strengthens the group’s presence in key European markets.

Forte, 78, will remain executive chairman, along with his sister Olga Polizzi, 77, who will remain vice chairman. His children, Charles, Lydia and Irene, also play a key role in the company. The group was originally founded by Forte and Polizzi in 1996 following the hostile takeover of their former family business by Granada.

Despite PIF’s substantial investment, the Forte family retains a majority stake in the company. The deal involved the issuance of £82m of new share capital and saw Italian investment company CDPE withdraw from its stake in the hotel group.