Saudi Arabia’s $700 billion Public Investment Fund (PIF) is to acquire a “significant minority” 49% stake in Rocco Forte Hotels.
The value of the deal by the sovereign wealth fund was not disclosed.
Established in 1996, Rocco Forte Hotels has a portfolio of 14 hotels and resorts and 20 private villas.
The Forte family will retain majority ownership and control the group with Italian entity CDPE Investimenti (CDPEI) selling its entire stake.
PIF’s investment will help accelerate the brand’s expansion in both existing and new global markets, building on the group’s track record of growth and development that includes eight new properties opened or committed in recent years.
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.
Completion of the transaction is subject to regulatory approval.
Sir Rocco said: “PIF is an excellent partner for us going forward. We have established an extremely good relationship during the course of our negotiations.
“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.
“We thank CDPEI for having shared the past fruitful eight years during which we both successfully accomplished the mission we shared when we started the journey, having significantly enhanced the value of the company and increased the group’s presence in Italy and across Europe.”
PIF head of international investments division Turqi Al Nowaiser said: “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.
“As active long-term investors, PIF will continue to invest strategically in promising sectors to achieve sustainable returns globally.”