Fattal Hotel in talks to buy German Holiday Inn chain

The company is talks to buy a portfolio of 22 hotels in Germany, half of the chain's hotels in the country, for NIS 1.5 billion

Sources inform ''Globes'' that Fattal Hotel Management Ltd. is in advanced talks to acquire a portfolio of 22 Holiday Inns in Germany for €300 million (NIS 1.5 billion). After more than a year of talks, Fattal Hotel has a no-shop period, and the final agreement is due to be signed in a few weeks. If a deal is closed, several Diaspora Jewish families will participate in it.

InterContinental Hotels Group plc (LSE; NYSE: IHG), which owns the Holiday Inn brand, manages 4,400 hotels in over 100 countries. Other brands include the Crowne Plaza, Intercontinental, Hotel Indigo, and Candlewood. The chain indirectly operates 40 Holiday Inn hotels in Germany.

Fattal Hotel currently operates 36 hotels in Europe under the Leonardo brand in Austria, Belgium, Germany, Hungary, and Switzerland. The company has over 2,000 employees in Europe. Industry sources estimate the company's European turnover at €120 million a year. The company's partners include Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Menorah Mivtachim Holdings Ltd. (TASE: MORA), and Amitim Senior Pension Funds.

Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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