Profit at the British hotel group co-founded by Sir Rocco Forte was cut by more than half during its latest financial year as it sold a significant stake to Saudi Arabia’s Public Investment Fund.
The deal, which was first announced in December 2023, saw the PIF take a 49 per cent holding in London-headquartered Rocco Forte Hotels in a move which valued it at £1.4bn.
Newly-filed accounts with Companies House have revealed that the group incurred costs of £16.7m associated with the deal.
As a result, the group’s pre-tax profit for the year to 30 April, 2024, fell from £34.5m to £15.8m.
However, the accounts for Rocco Forte Hotels also show that its revenue increased from £293.4m to £311.9m over the same period.
Rocco Forte Hotels was established in 1996 by hotelier Sir Rocco and his sister, Olga Polizzi.
The group operates 15 hotels across UK, Italy, Germany, Belgium and Russia while a further five are currently under development.
In the UK, the group runs The Balmoral Hotel in Edinburgh and Brown’s Hotel in London.
In separately-filed accounts, The Balmoral Hotel posted a revenue of £38m for the year, up from £34.1m, while its pre-tax profit rose from £7.7m to £8.8m.
UK and European revenue grows for Rocco Forte Hotels
Across the group, occupancy levels staff at 59.8 per cent in the year, up from 58.9 per cent, while the average daily rate grew by 6.4 per cent on a like-for-like basis.
A statement signed off by the board said: “There was revenue growth in each geographic region, building further on the strong growth recorded in the prior year.
It added: “The group is committed to ensuring that its hotels remain leaders in their cities.”
The group’s UK revenue increased from £62.4m to £67.6m in the year and from £209.8m to £223.4m in Europe.
However, in Russia, the group’s revenue dipped from £21.2m to £20.8m.
During the year the average number of people employed by the group rose from 2,345 to 2,470.