Forte Group
From Wikipedia, the free encyclopedia
| Forte Group | |
|---|---|
 |
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| Type | Public, Listed on the FTSE 100 at the time of the takeover by Granada plc now defunct |
| Founded | 1935 |
| Headquarters | London, United Kingdom |
| Key people | Charles Forte, founder and Rocco Forte CEO prior to takeover by Granada |
| Industry | Hotels and Catering |
Forte Group plc was a British hotel and restaurant company.
[edit] Beginnings
Charles Forte set up his first "milk bar" in 1935 as Strand Milk Bar Ltd when he was 26. Soon he began expanding into catering and hotel businesses. After the war, his company became Forte Holdings Ltd, and bought the Cafe Royal in 1954. He opened the first full motorway service station for cars at Newport Pagnell in 1959. Trust Houses Group Ltd and Forte Holdings merged in 1970 to become Trust House Forte or THF.
[edit] Trust House Forte
Trust House Forte was a hotel and catering group operating in the UK and worldwide. The company later changed its name to Forte Group plc. Most of the hotels were re-branded to one of the following:
Forte Heritage Hotels were mostly small country house style hotels e.g. The Old England Hotel in Windermere. Some of these were sold to Macdonald Hotels Ltd
Forte Posthouse Hotels were mostly 3* hotels for business travellers, they were usually located in city centres or near major trunk roads. Some of these were sold to Holiday Inn
Forte Crest Hotels were more upmarket than Forte Posthouse, they were mostly located in cities and were mostly 4*. The naming convention was Forte Crest + the name of the city or locality e.g Forte Crest Sheffield or Forte Crest Gatwick Airport
Forte Grand Hotels were a collection of High end international hotels including the Balmoral Hotel in Edinburgh
There were other hotels which never received branding e.g. Browns Hotel London
Through mergers and expansion, the Forte Group expanded into a multi-billion pound business. It included the Little Chef and Happy Eater roadside restaurants, Crest, Forte Grand, Travelodge and Posthouse hotels, as well as the wine merchant Grierson-Blumenthal and a majority (although non-controlling) stake in the Savoy Hotel. Happy Eater and the five Welcome Break service areas were bought from Hanson Trust PLC on August 1, 1986. The Grierson-Blumenthal stake was a "forced" acquisition by the group; it had originally been a personal holding of Charles Forte and fellow-directors of the group, supplying liquor to Forte restaurants and hotels at substantial personal profit until concern in the late 1970s about prosecution under the Companies Act obliged the directors to incorporate Grierson-Blumenthal as a subsidiary.
Forte was the CEO from 1971 and Chairman from 1982 (when his son Sir Rocco Forte took over as CEO).
[edit] Fate
In the late 1990s, the company was rebranded as Forte. Lord Forte passed full control to Rocco in 1993, but soon the Forte Group was faced with a hostile takeover bid from Granada. Ultimately, Granada succeeded with a £3.9 billion tender offer in January 1996, which left the family with around £350 million in cash.
In 2003, following the de-merger of Compass plc from Granada's media interests, the use of the Forte trademark was returned to Sir Rocco Forte in a gesture intended to dispel the bitter legacy of the takeover. Rocco now owns the Rocco Forte Hotels group.
