Investment firm Sixth Street has brought in Rocco Forte Hotels to operate a new luxury resort in Porto Cervo, Costa Smeralda.
The new property is jointly developed with Eidos Hotel Capital Partners acting as an operating partner and asset manager. Sixth Street acquired the property in January 2022.
Formerly known as Hotel Le Palme, the resort is located in Liscia di Vacca, Porto Cervo, on what is known as Costa Smeralda.
Set to open in 2024, the redeveloped resort will feature 64 rooms and suites, spa, three restaurants as well as a rooftop bar and meeting and event space.
Rocco Forte Hotels already has properties in Rome, Florence, Sicily and Puglia as well as The Carlton Milano and Rocco Forte House set to open in Milan in 2024.
Sixth Street completed the purchase of the Le Palme Hotel & Resort in January 2022. The property was first hotel and resort acquisition in Italy, following the acquisition of five hotels in Spain in December 2021.
Why it matters
In recent years investors have been eyeing the Italian market, sensing an opportunity to convert family-owned unbranded assets into institutionally owned flagged hotels.
“Italy and Greece are probably still the European markets with the lowest number of flagged hotels. We believe that there is an opportunity to change that narrative and introduce many more third-party brands, typically through franchise agreements,” said Alexis Pipilis of Invel, a private investment manager, speaking with Hospitality Investor earlier this year.