Rocco Forte Hotels doubles down on refurbishments amid revenue boost

Rocco Forte Hotels has more than doubled its capital investment over the past year to ensure its properties “remain leaders in their cities”.

The group directed £64.4m to projects across its 16-strong portfolio, up from £27.7m in 2024.

These included room refurbishments and enhancements to F&B outlets at Hotel de Russie in Rome, Verdura Resort in Sicily, Hotel Savoy in Florence, Brown’s hotel in London and the Charles hotel in Munich.

Its extensive refurbishment programme temporarily reduced the number of available rooms and full-service capacity at these hotels, leading to a slight dip in occupancy from 59.8% in 2024 to 58.5% in 2025.

However, the group posted strong trading in its results for the year ended 30 April 2025, reporting a 2.1% uptick in revenue from £311.9m in 2024 to £318.3m.

Its UK estate contributed to more than a fifth of total group revenue, with figures rising from £67.6m to £70.4m. Meanwhile, Russia delivered £23.5m, up from £20.8m, while the rest of Europe posted £224.4m, up from £223.5m.

Profit before tax also accelerated from £15.8m in 2024 to £25.5m in 2025, while EBITDA (earnings before interest, tax, depreciation and amortisation) before the impact of International Financial Reporting Standards (IFRS) 16 was £59m, up from £45.5m in 2024. Average daily rates grew 4% on the prior year on a like-for-like basis.

In February 2024, the hotel group announced it had entered into a management agreement with Capri Group to launch its first hotel in Naples, which is due to open in 2027. Three more hotel projects are in development in Italy: the Carlton hotel in Milan, Porto Cervo resort in Sardinia and Palazzo Castelluccio in Noto, Sicily.

There are a number of new hotel projects in addition to these which are at an “advanced stage of negotiation”, according to the group.

In the directors’ report, Sir Rocco Forte said: “In the new financial year ending 30 April 2026, the group has continued to trade well, despite the impact of increased competition in key markets, notably Rome and London. Revenue in the first two months of the year increased by 2.7% compared to the same period in the prior year. The outlook for the remainder of the new financial year remains positive.”

Earlier this week, the group announced its partnership with investment firm Emerald Pine Capital as it looks to open new properties across Europe and the Middle East.

A spokesperson said the deal was not an investment but the two would work together on any expansion in the regions going forward.

Rocco Forte Hotels runs 15 hotels, resorts, residences and villas across Europe, including the Balmoral hotel in Edinburgh and Brown’s hotel in London.

The group was founded by Sir Rocco Forte and his sister, Olga Polizzi, in 1996.