Dubai: The Saudi wealth fund PIF is buying a minority stake in the hospitality operator Rocco Forte Hotels, with the Italian investor CDPE Investimenti selling its holdings.
Launched in 1996, by Sir Rocco Forte and Olga Polizzi, Rocco Forte Hotels specialises in ‘landmark’ luxury hotels in ‘exceptional city and resort locations’. The group operates 14 properties as well as 20 private villas. A further three hotels are due to open in 2024 and 2025.
“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 Public Investment Fund.
"As active long-term investors, PIF will continue to invest strategically in promising sectors to achieve sustainable returns globally.”
Saudi Arabia is recasting its entire tourism, hospitality and airline sectors, starting with the launch of mega-destinations, then the various hotel projects done with an eye to ramp up capacity as inward tourism picks up, and then the Riyadh Air venture. With new hotels, Saudi Arabia has focused on creating signature experiences where possible, rather than just create yet another hotel.
As active long-term investors, PIF will continue to invest strategically in promising sectors to achieve sustainable returns globally
Status quo
After the PIF deal, Sir Rocco Forte will remain Executive Chairman, alongside 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.)
"We have established an extremely good relationship during the course of our negotiations," said Forte. "They (PIF) share the same vision for the brand and the future strategy of the group with the same ambition to take a long-term view."
More to follow...
