Newcastle United's Saudi owners take major stake in luxury hotel chain - days after Heathrow purchase
Rocco Forte Hotels said Saudi’s 700 billion US dollar (£552 billion) Public Investment Fund (PIF) is snapping up the “significant” minority stake with aims also to invest in the group to help it expand further worldwide.
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Hide AdFounders Sir Rocco and his sister Olga Polizzi will keep a 51 per cent stake in the firm and remain as executive chairman and deputy chair respectively, but Italian sovereign wealth fund CDP Equity will sell its entire 23 per cent shareholding as part of the deal.
It is understood that four of Sir Rocco’s five sisters will also exit the firm.
The deal marks the latest swoop by Saudi Arabia’s sovereign wealth fund to invest in UK assets and comes amid a spate of Middle East investments on these shores.
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Hide AdSaudi’s PIF also recently agreed to buy a 10 per cent stake in Heathrow Airport.
The Rocco Forte stake purchase adds to its existing interests in luxury hospitality, having already bought minority stakes in hotel groups Aman Resorts and Habitas last year.
Sir Rocco said: “PIF is an excellent partner for us going forward.
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Hide Ad“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.”
The PIF, which has invested in other transport sites, technology firms and sports teams such as Newcastle United FC, has more than 700 billion US dollars (£552 billion) in assets.
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Hide AdIt is controlled by Saudi Arabia’s Prince Mohammed bin Salman Al Saud, whose government has been subject to accusations over human rights violations.
Turqi Al-Nowaiser, deputy governor and head of the international investments division at PIF, 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.”
Rocco Forte hotels, which was founded in 1996, has 14 hotels and resorts, as well as 20 private villas across Italy, the UK, Germany, Belgium and Russia.
It plans to open three hotels in 2024 and 2025.
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