Saudi wealth fund takes big stake in Edinburgh Balmoral hotel owner Rocco Forte

Saudi Arabia’s sovereign wealth fund has taken a sizeable stake in Sir Rocco Forte’s luxury hotels group, owner of Edinburgh’s landmark Balmoral.
By Scott Reid
Published 4th Dec 2023, 11:04 BST
Updated 4th Dec 2023, 11:05 BST
The Rocco Forte Hotels portfolio includes Edinburgh's famous five-star Balmoral, situated on Princes Street.The Rocco Forte Hotels portfolio includes Edinburgh's famous five-star Balmoral, situated on Princes Street.
The Rocco Forte Hotels portfolio includes Edinburgh's famous five-star Balmoral, situated on Princes Street.

The hotel group has agreed to sell a 49 per cent stake to the fund in a deal thought to value the owner of the five-star Balmoral and Brown’s hotels at around £1.2 billion. Rocco Forte Hotels said Saudi’s $700 billion (£552bn) 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.

Founders Sir Rocco and his sister Olga Polizzi will keep a 51 per cent stake in the company 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.

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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. A planned Abu Dhabi-backed takeover of The Daily Telegraph is currently being investigated by regulators. Saudi’s PIF also recently agreed to buy a 10 per cent stake in Heathrow Airport.

The Rocco Forte stake purchase adds to the fund’s 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. 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.”

Rocco Forte Hotels 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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The PIF, which has invested in other transport sites, technology firms and sports teams such as Newcastle United FC, has more than $700bn in assets. It is controlled by Saudi Arabia’s Prince Mohammed bin Salman Al Saud.Edinburgh’s Balmoral Hotel Crowned ‘Best in Scotland’ in Condé Nast Traveller Readers’ Choice Awards

Related topics:BalmoralEdinburgh

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