In a strategic move to expand its portfolio in the hospitality sector, the Saudi Public Investment Fund (PIF) has announced its intention to acquire a significant 49% stake in Rocco Forte Hotels. This landmark decision reflects the fund’s commitment to bolstering its presence in the global luxury hotel industry, marking a significant milestone in Saudi Arabia’s investment ventures.
Our investment in Rocco Forte Hotels demonstrates PIF’s confidence in the commercial opportunity and strength of the international hospitality and tourism industries, which have exhibited remarkable resilience in recent years,” stated Turqi Al Nowaiser, deputy governor and head of the International Investments Division at PIF.
“As active long-term investors, PIF will persist in strategically investing in promising sectors to achieve sustainable returns globally.”
While retaining majority ownership and control, the Forte family will maintain a significant role in the business. The Italian investor CDPE Investimenti will divest its entire shareholding.
Rocco Forte to Remain Executive Chairman, Olga Polizzi as Deputy in Rocco Forte Hotels
Sir Rocco Forte will continue as executive chairman under the agreement, with Olga Polizzi as deputy chairman. Charles Forte, Lydia Forte, and Irene Forte will retain key roles, according to a statement from Rocco Forte Hotels.
Established in 1996, Rocco Forte Hotels operates across Italy, Britain, Germany, Belgium, and Russia, boasting 14 hotels and resorts, including iconic properties like Brown’s in London and the Balmoral in Edinburgh, along with 20 private villas.
The hotel group has plans to open three new hotels in Italy over the next two years, including two in Milan and one in Sardinia. The completion of the transaction is contingent on regulatory approval, according to Gulf Business.
PIF’s expansive portfolio aligns with Saudi Arabia’s Vision 2030 economic diversification strategy, aiming to reduce dependence on oil revenues. PIF has launched 87 companies over the years, generating more than half a million direct and indirect jobs.
In a bid to diversify the domestic economy away from oil, PIF entered a share purchase agreement in November, acquiring a 10% stake in FGP TopCo, the holding company of Heathrow Airport Holdings, from Ferrovial. The investment in Heathrow, a world-class airport and a vital gateway, aligns with PIF’s strategy to support the business as a long-term partner.
Saudi Arabia’s $700B wealth fund holds stakes in various sectors, including technology companies like Uber Technologies, football teams such as English Premier League’s Newcastle United, and electric car manufacturers like Lucid and Ceer. PIF is also funding ambitious projects, including the $500B futuristic NEOM City and the Red Sea Development Company’s mega tourism initiative in the desert.