Global Update
Forte ’ s new momentum
Sir Rocco Forte plans to double the size of RFH in five years .
Rocco Forte Hotels has been recapitalized and Sir Rocco is recharged , announcing his intention to double the size of the 10-hotel company within five years .
Forte ’ s strategic partnership with Fondo Strategico Italiano ( FSI ), an Italian state-backed sovereign fund 80 % controlled by Cassa Depositi e Prestiti and 20 % by Bank of Italy , will inject £ 60 million ( US $ 95 million ) into Rocco Forte and Family Ltd ., owner of Rocco Forte Hotels , in exchange for an equity stake of 23 %, valuing the enlarged equity at £ 260 million ( US $ 412 million ).
The hotel company is already at an advanced stage of discussion concerning a development in Venice and is actively pursuing projects in Milan , Naples and Sicily . It plans to open a hotel in Jeddah next summer , is “ actively involved ” in a project in Shanghai , and is exploring opportunities in New York , Paris and Madrid .
“ With the US $ 95 million coming into the business , it changes my whole balance sheet and puts me in a very strong financial position ,” Sir Rocco says . “ Obviously , the interest burden is reduced and I have capacity to make further investments . I could have carried on without this , but this gives me a much stronger position to move forward much faster and quite aggressively , which excites me a lot .”
Forte Hotels has been on the rebound after suffering after the Lehman Brothers collapse in 2008 . “ We ’ ve now got back to levels ahead of where we were at that time , but it ’ s taken five years to get there ,” Sir Rocco says .
In FSI , Forte says he has a partner that agrees with his investment philosophy . ” FSI is effectively a government-controlled body and has a very long-term horizon , which is very attractive to me because I ’ m not someone who likes to get in and out of things quickly to make a turn ,” he says . “ One of the aims is to help Italian tourism in Italy , and so they selected us as their luxury hotel partner . They will invest in hotels , which will then be leased back to us .”
Otherwise , the new investment doesn ’ t really change very much for RFH . “ I don ’ t want to become the biggest hotel company in the world . I want to continue to do projects which are well thought out , which fit into the ethos of what I ’ m doing already ,” Sir Rocco says . “ So , I don ’ t want to expand for the sake of expanding . I want to expand with projects that add value to the whole group .”
Farm to cup
Fairmont Hotels & Resorts is jumping on the bandwagon of hotels aiming to serve better coffee by partnering with a noteworthy brewer . In North America , it has a new organic , artisanal coffee from H . C . Valentine Coffee Co ., a micro-roasting company based in Alabama .
The new ‘ Signature Blend ’ is delivered within a few days postroast , where each pot is freshly ground and served to guests immediately . This new coffee experience will be carried through to banqueting , as well .
“ The decision to change our coffee program wasn ’ t about increasing business but rather delivering a superior product and experience for our guests . The quality of coffee product and service drives customer satisfaction and loyalty , and significantly impacts the overall guest experience ,” says Brett Patterson , Fairmont ’ s vice president of food & beverage , Americas .
16 HOTELS January / February 2015 www . hotelsmag . com