Sir Rocco Forte and Bank of Scotland announced today that they had reached agreement on a joint venture which would secure funding for further expansion of the Rocco Forte Hotels brand of luxury hotels.
The joint venture company will have initial equity of £70m and will raise debt of around £200m to produce a significant fund for investment in projects which produce good returns. Hotels owned by the joint venture will be managed by Rocco Forte Hotels.
Commenting on the joint venture, Sir Rocco said, “Bank of Scotland has played a key role in the development of Rocco Forte Hotels since they sold us our first hotel, The Balmoral in Edinburgh, five years ago. They have provided the debt finance which has helped grow our collection to seven hotels and I am delighted to extend that relationship by forming this joint venture for future expansion across Europe.”
George Mitchell, Treasurer and Managing Director at Bank of Scotland said, “We are delighted to be extending our involvement with Sir Rocco and his team and to be part of this successful business and growing brand. The joint venture is being launched by extending the bank`s existing equity position in the new Lowry Hotel in Manchester and we look forward to involvement in more projects.”