Rocco Forte Hotels is set to expand with five new luxury properties, following significant investment from Saudi Arabia’s Public Investment Fund.
- The hotel group experienced a 6.3% revenue growth, achieving £311.9 million, with increasing UK and international contributions.
- New developments are planned across key European locations, reinforcing the group’s market presence and leveraging family ties to Italy.
- Despite robust growth, Rocco Forte’s profitability was challenged, specifically in its Russian properties with slight revenue decline.
- The Forte family continues to hold the majority stake, maintaining leadership within the company, while welcoming new equity.
Rocco Forte Hotels is embarking on an ambitious expansion plan with the introduction of five new luxury properties. This initiative comes after a substantial investment by Saudi Arabia’s Public Investment Fund (PIF), which has taken a significant stake in the company. The investment has provided the necessary capital to support the group’s growth objectives across Europe.
The financial performance of the group has been notably positive. For the year ending April, the group’s total revenue increased by 6.3%, reaching £311.9 million. UK revenues grew from £62.4 million to £67.6 million, while international revenues saw an increase from £209.8 million to £223.4 million. This growth reflects strong performances across various geographic markets, despite minor setbacks in Russian properties.
Among the new hotel developments are two significant properties in Milan—Carlton and Rocco Forte House—along with sites in Porto Cervo, Sardinia, Palazzo Castelluccio in Noto, and Palazzo Sirignano in Naples. The expansion underscores the group’s deep connections to Italy and aims to fortify its presence in vital European cities.
Despite the financial boost and expansion plans, the group’s Russian properties, the Angleterre and the Astoria in St Petersburg, reported a slight revenue decrease, totalling £20.8 million. However, the group remains optimistic about future performance and is committed to maintaining leadership in its existing markets.
The Forte family, who founded the group, retains a majority stake, ensuring continuity in leadership and strategic direction. While the PIF investment involves £82 million in new equity issuance, the family maintains control, with Sir Rocco Forte, his sister Olga Polizzi, and his children remaining at the helm.
The strategic investment by Saudi Arabia’s Public Investment Fund accelerates Rocco Forte Hotels’ expansion whilst maintaining family control over the brand.
