Podcast Summary: James Reed: All About Business

Episode 53 – "Titan of the hotel industry reveals the 3 things you need to know to open a luxury hospitality business"

Guest: Sir Rocco Forte (Chairman & CEO, Rocco Forte Hotels)
Host: James Reed CBE (Chairman & CEO, Reed Group)
Recorded at: Hotel de Russie, Rome
Date: November 17, 2025

Episode Overview

James Reed sits down with Sir Rocco Forte, renowned hotelier and businessman, in the heart of Rome at the world-famous Hotel de Russie. The conversation delves into Rocco Forte’s multi-generational family business legacy, the ingredients for luxury hospitality success, the lessons from corporate battles, and his timeless ethos of service, culture, and resilience. Sir Rocco offers candid insights on leadership, family dynamics, staff engagement, industry trends, business expansion, and his unwavering focus on quality, individuality, and building something that lasts.

Main Discussion Points and Insights

1. What Makes a Rocco Forte Hotel Unique (02:03–05:10)

• Every Rocco Forte hotel embodies a strong culture and a sense of place, avoiding the "cookie-cutter" feel of major chains.

• Each hotel is crafted with local personality—Sir Rocco’s sister, Olga, oversees the décor to ensure local flavor.

• Service is the true differentiator in luxury hotels.

  • Quote: “The underlying thing in hotels is the service you give to the customer. And in luxury hotels, that's the thing that's of the utmost importance. Customer's got to feel like an individual.” – Sir Rocco Forte [03:52]

• Staff induction includes immersion in family and business history, intended to foster genuine belief in the company's vision.

2. Family, Culture, and Visible Leadership (05:11–08:53)

• The business is deeply family-run; Sir Rocco, his sister Olga, and now his children are fundamentally involved.
• Staff are taught family values, with a personal, hospitable approach encouraged at every level.
• Sir Rocco values visibility—sharing his story through media and being physically present in hotels. This visibility inspires staff pride.
  • Quote: “They know who they're working for... People who they know are going to be there for the longer term... In our sort of business, it's very important for someone like me to be visible.” – Sir Rocco Forte [06:42]

3. Roots in Hospitality: The Forte Family History (09:06–15:14)

• Origins stretch back to Sir Rocco’s grandfather’s emigration story and early ventures in Scotland.
• His father was a hospitality industry pioneer, introducing the first motorway service area and inflight catering in the UK.
• The Forte Group grew through acquisitions, eventually merging with Trust Houses—raising cultural challenges but embedding a family-led entrepreneurial culture.
• Maintaining control during mergers was a struggle, gradually diluted over decades.

4. The Granada Takeover and a New Beginning (15:54–21:56)

• Sir Rocco discusses the hostile takeover by Granada, the strategies used to maximize shareholder value, and the emotional toll.

• After losing the family business, he immediately vowed to return—eventually forming “RF Hotels” due to trademark restrictions.

  • Memorable Moment: “I said, I will return. And you did almost immediately.” – James Reed [19:01]

• Regained rights to the family name through the goodwill of Compass Group.

5. Rebuilding and Expansion of the New Rocco Forte Hotels (21:55–25:27)

• Relied on business acumen and family funds to secure and transform The Balmoral in Edinburgh (his first new hotel).
• Secured substantial long-term financing from Bank of Scotland after early successes.
• Encountered challenges with new ventures in Cardiff where local luxury demand did not meet projections, but the project drove local development and received governmental gratitude.

6. Philosophy on Service, Staff, and Community Impact (27:19–32:36)

• Personalized service and guest recognition are non-negotiable.

• Innovative practices in staff compensation: implemented full service charge payments, maximizing take-home pay for staff in Italy, setting industry precedents.

  • Quote: “That puts €10,000–11,000 net into their pockets... I was the first person to do it in Italy.” – Sir Rocco Forte [29:16]

• Exceptional employee benefits, including unique “death in service” coverage (three times salary for families).

• Major focus on community impact: Verdura Resort in Sicily led to 500 direct jobs and the creation of 1,000 local SMEs, reversing local economic decline.

  • Quote: “...A thousand small businesses have created thanks to Verdura.” — Sir Rocco Forte [31:15]

7. Expansion Strategy, Market Focus & Family Involvement (33:02–42:10)

• Italy’s rich tourism appeal, cultural assets, and hospitable culture make it an ideal expansion focus.
• Unique collaborations with family: Sir Rocco’s children drive areas like property development (son), restaurants (eldest daughter Lydia), and spa/beauty (daughter Irene).
• A pragmatic approach to involving the next generation: “They wanted to come into the business because they like it.” [06:38]

8. Professionalism, Innovation, and Family Business Myths (42:10–46:40)

• Challenges the perception that family businesses can’t be professional or innovative.
• Strong executive team, with family members working alongside experienced industry professionals.
• Emphasis on tradition and innovation as central to enduring success.

9. Leadership, Delegation, and Decision-Making (46:40–53:23)

• Delegation is vital for scale; learning to trust and empower others is a key Forte principle.

• Candid on the importance—and difficulty—of making tough people decisions, especially in bureaucratic or highly-regulated environments.

  • Quote: “You have to delegate if you want to control every detail yourself, the business can't grow unless you're a complete genius.” — Sir Rocco Forte [45:01]

• Advocates for focusing on building revenue (“top line”) instead of over-focusing on cost-cutting.

  • Quote: “If you don't have a top line, you don't have a bottom line.” — Sir Rocco Forte [51:13]

• Luxury hospitality means generosity and generosity breeds loyalty and word of mouth.

10. Adapting in Changing Markets & Persevering in Adversity (54:07–57:54)

• Shared experience transforming a Soviet-era hotel in St Petersburg through instilling service standards—starting simply, with a smile.
• Despite geopolitical turmoil, Sir Rocco remains loyal to his staff everywhere.
• Guests value the sense of decency and accessibility he brings as a leader.

11. Leadership Ethos: Purpose Over Profit (58:04–59:39)

• “I'm not in the business just to make money. I'm in the business to actually create something special to do it well. And out of that I make money.” – Sir Rocco Forte [58:34]
• No exit plan. Focus is on legacy, continuity, and building for the long term.

12. Policy Reflections and the State of Business in the UK (60:01–65:17)

• Strong critique of growing bureaucracy in the UK and policies that stifle enterprise.
• Calls for a return to pro-growth, entrepreneurial government reminiscent of Thatcher-era reforms.
• Stresses ongoing economic stagnation and the need to re-invigorate private enterprise.
• “They've snuffed out the entrepreneurial spirit...” – Sir Rocco Forte [63:44]

13. Lasting Business Lessons and Advice for Entrepreneurs (65:44–68:22)

• His training as a chartered accountant proved invaluable for business management.
• Core advice for new entrepreneurs:
  • Know your business intimately before launching.
  • Recognize the demands–especially of hotels—and the need for professional expertise.
  • Delegation and team-building are crucial for growth.
• Signature story: Sir Rocco's grandfather’s leap of faith opening a second milk bar taught the power and necessity of delegation.

14. Personal Reflections & Looking Forward (69:17–71:53)

• Motivation is constant: “I don't think about Monday as the first day of the week... I'm thinking about [the business] all the time.” — Sir Rocco Forte [69:17]
• Ambition to double the company’s size over the next five years, even as he approaches his eighties.
• Legacy focus: ensuring succession and a strong future for the family business.

Notable Quotes & Memorable Moments

• “Service... is of the utmost importance. Customer's got to feel like an individual.” [03:52]
• “They know who they're working for... people who they know are going to be there for the longer term.” [06:42]
• “I will return.” [19:01] — (On the Granada takeover)
• “If you don't have a top line, you don't have a bottom line.” [51:13]
• “I'm not in the business just to make money. I'm in the business to actually create something special.” [58:34]
• “You have to delegate if you want to control every detail yourself, the business can't grow...” [45:01]

Key Timestamps

• [02:03] — Rocco describes the uniqueness of Rocco Forte Hotels
• [06:09] — On family values and leading by example
• [15:54] — The Granada takeover and its impact
• [21:55] — Building from scratch: acquiring The Balmoral
• [27:19] — Staff-focused, service-led company philosophy
• [29:16] — Leading staff compensation innovation in Italy
• [31:15] — Market impact: Verdura and regional transformation in Sicily
• [45:01] — Lessons in delegation and leadership
• [51:13] — The mantra: “Top line before bottom line”
• [54:07] — Transforming service culture in Russia
• [58:34] — Building for legacy, not just profit
• [60:01] — Reflections on government policy and business environment
• [66:40] — Advice for aspiring hospitality entrepreneurs
• [69:17] — Motivation and drive: lifelong focus
• [70:23] — Vision for the next five years: growth and succession

Conclusion

Sir Rocco Forte’s conversation is an inspiring journey through hospitality, resilience, and the creation of enduring value. His commitment to people—family, staff, and guests—shines throughout, as does his belief in hands-on leadership, authenticity, uncompromising service, and generational legacy. For aspiring entrepreneurs, especially in luxury service, his advice is unambiguous: know your craft deeply, cultivate a team that shares your standards, delegate, remain visible and present, and never lose sight of the “top line.” Ultimately, success is not in short-term profits, but in building something that lasts.