Interview with Charles Forte, Director of Development at Rocco Forte Hotels. In 2023, the Public Investment Fund (PIF) bought shares from the Rocco Forte family allowing the company to have new ambitions for its Rocco Forte Hotel brand.
What is Rocco Forte's DNA?
Charles Forte: In terms of development, we are a family-owned business.
In many larger companies, employees are incentivised to sign hotels, and of course, I am as well. But in the end, we own the business. It's much more than just signing hotels and getting a bonus. We want to do things that we're proud of and can stand behind. That translates to every aspect of the business.
We love the business, and it's something I hope we never lose. I would love to do this for the rest of my life. We just have a much more long-term approach, and it shows in our company culture. People appreciate that we care deeply and are committed for the long haul.
What about your development ambitions?
We were in a more aggressive expansion phase even before PIF joined. 2018 and 2019 were very strong years. COVID, despite being terrible, changed the market. People's willingness to spend on luxury hotels increased significantly, leading to several years of strong trading. To stay competitive with top luxury brands, you need a certain size and growth. PIF wants to see growth, and we are aligned with them on that.
What are your priority markets to grow?
I like to categorise our markets into three or four buckets. Italy is where our brand is strongest. We have the best infrastructure and contacts there, so we see the best off-market deals. However, we don't want to be seen as Italy-centric. We're an international luxury operator. We're focusing on Europe more broadly, key gateway cities like Paris, and resort markets.
North America is also crucial, with markets like Palm Beach, Miami Beach, New York, and Los Angeles. The Middle East is another focus, especially with PIF's involvement. We're looking at opportunities in Saudi Arabia, Dubai, and Marrakesh.
Are you considering buying a small group of hotels to grow faster?
It's difficult to find groups where we'd want to take on all the hotels. However, it's definitely a consideration. We've discussed it with PIF, and while it's challenging, it's not off the table.
How do you choose where to invest and develop?
We prefer hotels with a level of intimacy and a familial feeling, typically between 50 and 150 keys. We like working with interior designers who have a residential background to create a homely feel. We aim for charm and understated luxury, avoiding ostentation. While we usually look at primary markets, in Italy, where we have strong infrastructure, we're more adventurous. We're also open to secondary markets once we've established a presence.
Could you share your current pipeline?
We'll announce three new projects on our website soon: in Milan, Sadinia, and Naples. We have advanced projects in Noto, Sicily, converting a 31-key palazzo, and in Puglia, with a larger masseria. We're also working on a project in Dubai and exploring opportunities in Sardinia, Coma, Cortina, Marrakech, and Porto Heli in Greece.
Does the current economic and geopolitical climate affect your strategy?
We maintain our long-term vision. Trading remains strong, which supports our development. Good hotels perform well regardless of the market climate. We focus on doing the right projects, ensuring they are successful irrespective of market conditions.
We are flexible in our approach, considering lease, management, and co-investment opportunities. We're in a good moment and hope to capitalise on more opportunities in the coming years.
