Sir Rocco Forte is set to expand his luxury hotel chain with the development of five new hotels across Europe, following a significant investment from Saudi Arabia’s Public Investment Fund (PIF), which purchased a minority stake that values the company at £1.4 billion.

The acquisition of a 49% stake by PIF has paved the way for ambitious growth while also impacting the overall earnings of the Forte group, which reported a reduction in its profits.

Recent financial documents for the year ending in April indicate that UK revenues increased from £62.4 million to £67.6 million, while international revenues jumped from £209.8 million to £223.4 million.

Overall, total revenue rose by 6.3% to £311.9 million, driven by room occupancy rates climbing to 59.9% from 58.9%.

However, the company noted a decline in revenue from its two hotels in Russia, which fell to £20.8 million from £21.2 million. These properties, the Angleterre and the Astoria, are located in St Petersburg.

In their statement, the firm remarked, “There was revenue growth in each geographic region, further building on the strong growth recorded in the prior year. The group is dedicated to maintaining its hotels as leaders in their respective cities.”

Throughout the year, the average workforce across the group’s ten existing hotels increased, rising from 2,345 to 2,470 employees.

Rocco Forte Hotels, which currently operates ten properties, is launching new hotels in Italy, where the Rocco Forte family has deep roots. The new locations include the Carlton and Rocco Forte House in Milan, a resort in Porto Cervo, a hotel in Noto called Palazzo Castelluccio, and Palazzo Sirignano in Naples.

At 78, Forte will continue to serve as executive chairman, while his sister, Olga Polizzi, 77, retains the role of deputy chairman. His children, Charles, Lydia, and Irene, will also maintain essential positions within the family business.

The hotel group was founded by Forte and his sister in 1996, following the hostile takeover of the original Forte hotel and catering business by Granada.

Forte indicated that the family intends to keep a majority stake in the company. As part of this agreement, the group issued £82 million in new equity, and the Italian investment firm CDPE divested its entire stake.