Rocco Forte plots expansion under new investment

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

Rocco Forte's Hotel de Russie
Rocco Forte’s Hotel de Russie

Rocco Forte Hotels has announced plans to expand its portfolio following a stake partnership with an Italian state-backed sovereign fund.

The luxury hotel chain said it is already in advanced talks for a hotel in Venice and is also pursuing properties in New York, Paris, Madrid, Milan, Naples and Sicily following the deal, which sees Fondo Strategico Italiano Spa (FSI) take a 23% stake in Rocco Forte and Family Ltd.

The group is also involved in a hotel in Shanghai and will open a property in Jeddah in summer 2015.

Under the deal FSI will invest £60 million into the business, valuing the enlarged equity at £260m.

FSI is an Italian state-backed sovereign fund that is 80% controlled by Cassa Depositi e Prestiti (CDP) and 20% by the Bank of Italy, with a remit to help tourism grow in Italy.

“It is our intention to at least double the size of the company in the next five years and our partnership with FSI will facilitate this quite considerably. Over the past six months I have got to know Maurizio Tamagnini and his team well,” said Sir Rocco Forte. “We have established an excellent working relationship which will ensure that we hit the ground running in the development of Rocco Forte Hotels.”

Klook.com

EXPERT OPINION

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