Forte sells significant stake to Saudi fund

Rocco Forte Hotels has sold a reported 49% of the group to Saudi Arabia’s Public Investment Fund. The Forte family will retain majority ownership and control. The arrangement sees the Italian entity CDPE Investimenti (CDPEI) selling its entire stake. RFH would not confirm the details of the transaction.

PIF’s purchase reportedly gives the hotel group an enterprise value of around £1.4 billion ($1.8 billion).

PIF’s investment will include an element of primary equity which will accelerate the brand’s expansion in both existing and new global markets. RFH has opened or committed eight new properties in recent years. Established in 1996, the group today operates 14 hotels and resorts, as well as 20 private villas. A further three hotels are due to open in 2024 and 2025.

Last week PIF, which has more than $700 billion in assets made via oil wealth, bought a 10% stake in Heathrow Airport.

Sir Rocco Forte will remain executive chairman, alongside his sister Olga Polizzi, who will continue as deputy chairman. Charles Forte, Lydia Forte and Irene Forte will also continue to hold key roles in the business.

“PIF is an excellent partner for us going forward. We have established an extremely good relationship during the course of our negotiations” Forte said. “They share the same vision for the brand and the future strategy of the group with the same ambition to take a long-term view. I look forward to working with PIF to expand the group and improve the high level of service we offer our customers.

“Our investment in Rocco Forte Hotels reflects PIF’s confidence in both the commercial opportunity and strength of the international hospitality and tourism industries that have shown remarkable resilience in recent years,” said Turqi Al Nowaiser, deputy governor and head of International Investments Division at PIF. “As active long-term investors, PIF will continue to invest strategically in promising sectors to achieve sustainable returns globally.”