Fattal raises 315 million euros to buy 30 European hotels

The operator of the Israeli hotel chain Fattal Holdings (1998) Ltd. (TASE: FTAL) announced 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) to expand its hotel portfolio by Europe. The amount raised could reach 400 million euros if Leumi Partners and other investors join the operation.

Fattal intends to buy 30 hotels and the company, controlled by David Fattal (65%), plans to focus its acquisitions on Western Europe, mainly in Germany, Spain and the United Kingdom, but the company said it would also consider acquisitions in Poland, Greece and Portugal. The company said it had already bought two 260-room hotels in Malaga and Mallorca in Spain for 40 million euros.

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 largely over, and that the Russian-Ukrainian war did not impact tourism in Western Europe.

Fattal’s 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 in 2022 as hotel owners who will be required to refinance loans they have taken in the past with the banks could encounter financing problems.”

As of March 2022, Fattal operated 192 open hotels out of the chain’s 227. 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 an average occupancy of 60% in its Israeli hotels compared to 74% before the outbreak of the Covid pandemic in 2019. The average occupancy in Europe was 52.8% compared to 79% before the pandemic in 2019 .

Published by Globes, Israel business news – en.globes.co.il – on April 17, 2022.

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