Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is set to acquire a 49% stake in Rocco Forte Hotels, a move that not only injects significant capital into the luxury hotel group but also supports its expansion plans. The purchase, reported by the Financial Times, values Rocco Forte Hotels at approximately £1.4 billion ($1.8 billion).
Founded in 1996 by siblings Rocco Forte and Olga Polizzi, the hotel group's portfolio spans Italy, Britain, Germany, Belgium, and Russia, with an additional 20 private villas complementing its existing 14 hotels. As part of the deal, Rocco Forte and Polizzi will retain their positions as executive chairman and deputy chair, respectively, while maintaining majority ownership and control of the group.
The transaction marks a strategic partnership that aligns with both parties' vision for the brand and the future trajectory of the hotel group. Rocco Forte, at 78, expressed confidence in PIF as an "excellent partner" and highlighted their shared long-term outlook and ambition for the brand.
While the exact size of PIF's stake remains undisclosed, the deal involves Italian investor CDPE Investimenti divesting its entire shareholding. CDPE, backed by Italy's state-owned fund CDP, currently holds a 23% stake in Rocco Forte Hotels, having invested €80 million in 2015.
Rocco Forte Hotels, advised by Rothschild in the transaction, is poised for further expansion with the opening of three additional hotels in Italy within the next two years, including two in Milan and one in Sardinia.
The move aligns with Saudi Arabia's Vision 2030 plan, a comprehensive initiative diversifying the country's investments across various sectors to reduce reliance on oil. Turqi Al Nowaiser of PIF emphasized the confidence in the commercial opportunity and strength of the international hospitality and tourism industries.
As part of its broader investment strategy, PIF is branching out into diverse sectors, reflecting the changing landscape of the Saudi economy. The deal underlines the fund's confidence in the hospitality sector's growth potential and Rocco Forte Hotels' ability to capitalize on it.
Rocco Forte Hotels reported revenues of approximately £300 million in the last fiscal year, with a core profit of around £60 million. The move not only infuses capital into the hotel group but also positions it for sustained growth in the competitive luxury hospitality market.
For Rocco Forte, a British entrepreneur with Italian heritage, this partnership marks another significant chapter in his career, demonstrating resilience and strategic acumen since the founding of the hotel group in 1996. As both parties look to the future, the collaboration sets the stage for Rocco Forte Hotels to continue its legacy of providing exceptional luxury experiences on a global scale.
