Fattal raises 315m to buy 30 European hotels
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Israeli hotel chain operator Fattal Holdings (1998) Ltd. (TASE: FTAL) has reported that it has raised €315 million from Israeli institutional investors led by Harel Insurance Investments and Financial Services (TASE: HARL) and Menorah Mivtachim Group (TASE: MMHD) in order to expand its hotel portfolio in Europe. The amount raised could increase to €400 million if Leumi Partners and other investors join the deal.
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Fattal intends buying 30 hotels and the company, controlled by David Fattal (65%) plans focusing its acquisitions on Western Europe, mainly in Germany, Spain and the UK but the company said it would also consider acquisitions in Poland, Greece and Portugal. The company said that it has already bought two hotels with 260 rooms in Malaga and Majorca in Spain for €40 million.
Fattal currently sees an opportunity in the wake of the Covid pandemic and believes that although some restrictions are still in place in some EU countries, occupancy levels and bookings indicate that the crisis is for the most part over, and the Russia-Ukraine war has not impacted tourism in Western Europe.
Fattal CFO Shahar Aka said, “The Covid crisis has created an opportunity in Europe to buy hotel assets at attractive prices. The company’s management has been exposed to many opportunities on the continent in recent months and we believe that more opportunities will be created during 2022 as hotel owners who will be required to refinance loans that they have taken in the past from banks may encounter financing problems.”
As of March 2022, Fattal was operating 192 hotels which were open out of 227 in the chain. The company operates 170 hotels in Europe and 57 in Israel. Fattal operates in 19 countries and has 64 hotels in Germany and 48 hotels in the UK.
In March 2022, Fattal recorded average occupancy of 60% in its Israeli hotels compared with 74% before the outbreak of the Covid pandemic in 2019. Average occupancy in Europe was 52.8% compared with 79% prior to the pandemic in 2019.
Published by Globes, Israel business news – en.globes.co.il – on April 17, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
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