Hotel magnate Sir Rocco Forte receives high-profit windfall following sale of hospitality empire
Rocco Forte Hotels Reports Modest Revenue Growth and Strong Pre-Tax Profits
Rocco Forte Hotels, the luxury hotel group headquartered in London, has announced its financial results for the year ending 30 April 2025. The group reported a modest revenue increase of 2.1% to £318.3 million, with its UK estate contributing over a fifth of total revenue and growing from £67.6 million to £70.4 million[1].
The group’s pre-tax profits improved significantly from £15.8 million to £25.4 million in the same period, despite incurring £16.7 million in costs related to a major shareholder deal with Saudi Arabia’s Public Investment Fund (PIF), which acquired a 49% stake in December 2023 at a valuation of £1.4 billion[2].
The UK revenue rise was a positive sign, but London’s iconic Ritz hotel continues to struggle, posting a pre-tax loss of £10 million in 2023 and having not reported a profit since 2019. Turnover at The Ritz remained flat at £36 million for 2023[2]. The broader London portfolio still underpins group performance but reflects challenges in some landmark assets.
In Rome, specific financial figures for Rocco Forte’s hotels were not detailed in the latest results; however, the company is actively investing in refurbishment projects to enhance its portfolio[1].
The group's employee count increased from 2,470 to 2,692 during the year. The Balmoral Hotel, run by Rocco Forte Hotels in the UK, posted a turnover of £41.2m for the same financial year, up from £38m. The pre-tax profit of The Balmoral Hotel increased from £8.8m to £9.8m[1].
Rocco Forte Hotels operates 16 hotels across the UK, Italy, Germany, Belgium, and Russia, with four more under development. The group runs Hotel Astoria and The Angleterre Hotel in St Petersburg, Russia.
In October 2024, Sir Rocco Forte signed a letter to Chancellor Rachel Reeves to reinstate tax-free shopping in the UK, along with over 300 other business leaders. The scrapping of VAT-free shopping in 2021 for visitors outside the EU was blamed for a slump in luxury selling in London[3].
The group set aside £64.6m for capital investment projects, up from £27.7m in the prior 12 months. Refurbishments continue as a core part of the group's growth and revenue enhancement strategy, as seen with properties like The Balmoral Hotel in Edinburgh, which reported a strong financial year aided by recent upgrades[1][3].
Rocco Forte Hotels recently formed a strategic partnership with Emerald Pine Capital to accelerate expansion across Europe and the Middle East, focusing on gateway cities and favored leisure destinations. This partnership aims to leverage Emerald Pine’s investment and asset management expertise alongside Rocco Forte’s operational strengths to pursue repositioning, value-add, and development opportunities[4][5].
The outlook for the new financial year remains positive. Rocco Forte Hotels, founded by Sir Rocco Forte, issued a record dividend of £8.9m for the year ending 30 April, 2025. The group's revenue in Russia grew from £20.8m to £23.5m, while UK revenue increased from £67.6m to £70.3m, and European revenue increased from £223.4m to £224.3m[1].
[1] Financial Times [2] The Guardian [3] BBC News [4] Hotel Management [5] Skift
- Rocco Forte Hotels, despite incurring costs from a major shareholder deal with Saudi Arabia's Public Investment Fund, reported improved pre-tax profits in the finance sector, signifying a strong performance in the industry.
- The group, with its focus on growth and revenue enhancement through refurbishments, like the one at The Balmoral Hotel in Edinburgh, is actively investing in markets across Europe and the Middle East, leveraging partnerships to expand business in gateway cities.
