Hotel magnate Sir Rocco Forte experiences substantial financial gain following successful transaction of his hospitality empire.
Rocco Forte Hotels Reports Strong Financial Results and Expansion Plans
Rocco Forte Hotels, the luxury hospitality group headquartered in London, has announced impressive financial results for the financial year ending April 30, 2025. The company, which is jointly owned by Sir Rocco Forte and Saudi Arabia's Public Investment Fund (PIF), has shown steady growth and significant investments in refurbishments and expansions.
The group's pre-tax profit bounced back from £15.8 million to £25.4 million during the latest financial year. This growth was accompanied by a 2.1% increase in revenue, with group revenue rising from £311.9 million in 2024 to £318.3 million in 2025. The UK properties contributed significantly to this growth, increasing revenues from £67.6 million to £70.4 million.
One of the standout performers was The Balmoral Hotel in Edinburgh, part of Rocco Forte Hotels, which posted strong financial results for 2024/25, boosted by a refurbishment. The hotel reported a turnover of £41.2 million for the financial year, up from £38 million.
The group also undertook a strategic refurbishment programme during the year, temporarily reducing available room inventory and full-service capacity at selected properties. Despite this, the group's revenue in the UK increased by 2.7%, despite increased competition in key markets like Rome and London.
The group's revenue in Russia also grew from £20.8 million to £23.5 million. Meanwhile, European revenue increased from £223.4 million to £224.3 million.
In addition to the financial growth, the group has also expanded its workforce. The number of people employed by the group increased from 2,470 to 2,692 in the year.
Rocco Forte Hotels has also issued a record dividend of £8.9 million for the year to 30 April, 2025. However, the group incurred costs of £16.7 million associated with the deal with PIF in the previous year, impacting its pre-tax profits.
The deal between Sir Rocco and PIF, announced in December 2023, valued the group at £1.4 billion. Sir Rocco Forte and PIF jointly own Rocco Forte Hotels, with PIF owning 49%.
In other news, Sir Rocco Forte was among more than 300 business leaders who signed a letter to Chancellor Rachel Reeves to reinstate tax-free shopping in the UK in October 2024. Other signatories included designer Paul Smith, Heathrow Airport, John Lewis, and Shakespeare's Globe. The scrapping of VAT-free shopping for visitors outside the EU was blamed for a slump in luxury selling in London.
The group has also set aside £64.6 million for capital investment projects, up from £27.7 million in the prior 12 months. This investment is expected to accelerate the group's expansion in Europe and the Middle East, following a strategic partnership with Emerald Pine Capital.
In summary, Rocco Forte Hotels is showing steady revenue growth and investment in refurbishments and expansions post the involvement of Middle Eastern capital partners, including PIF. However, specific financial performance attributable solely to PIF's investment was not detailed in the available sources.
Investing in the group's capital investment projects resulted in an increase from £27.7 million to £64.6 million, signifying a focus on business expansion in Europe and the Middle East. The strong financial results and expansion plans of Rocco Forte Hotels, as evidenced by their increased revenue and ongoing investing in markets like the UK and Russia, reflect positively on the finance sector and the hospitality industry.
