Rocco Forte Hotels’ Russian outpost pays out bumper dividend

Rocco Forte Hotels' Russian subsidiary, Astoria Hotel Joint Stock Company, has distributed a hefty £3.2 million dividend to shareholders, marking a 66% increase year-on-year. Despite accusations that the luxury hotel chain is funding Russia's war efforts in Ukraine, Astoria's post-tax profit surged by over 14% to £7.9 million in the 12 months leading up to May.

The group maintains five-star hotels in St Petersburg, with Astoria and the neighbouring Angleterre Hotel under a separate shell company to keep it insulated from the rest of the portfolio. While Astoria is majority-owned by Rocco Forte Hotels, the luxury chain's decision to retain a stake in the Russian operation ensures it does not profit directly from the conflict and sanctions.

The UK's most successful high-end hospitality empire, Rocco Forte Hotels, operates in cities like Milan, Brussels, and Sicily, but has maintained a presence in Russia, setting it apart from other Western firms. The majority of British multinationals have severed ties with Russia since its 2022 invasion of Ukraine, fearing reputational damage or economic sanctions.

However, Rocco Forte Hotels has kept its Russian division at arm's length, citing additional policies and procedures to manage risks and comply with international sanctions. The company warns that non-compliance could have a "material effect" on its financial statements, including potential heavy fines and legal action. Critics argue that Rocco Forte Hotels is indirectly supporting Putin's war machine by maintaining operations in Russia, with pro-Ukraine campaigners branding the chain a "shameful example of greed triumphing over morality."