Hotel group Fattal Holdings (TASE: FTAL) saw a 55% decline in revenue in the third quarter of 2020, in comparison with the third quarter of 2019, to NIS 677 million, as the coronavirus pandemic continued to hit the hotel industry hard. Fattal's hotel chain consists of 217 hotels in Israel and overseas. The company is managed by its controlling shareholder David Fattal.
Operating profit before interest, tax, depreciation, amortization and rent (EBITDAR) totaled NIS 179 million in the third quarter of this year, down 66% in comparison with the corresponding quarter of 2019, and the group posted a net loss of NIS 270 million, which compares with a net profit of NIS 65 million in the corresponding quarter.
For the first nine months of 2020, Fattal Holdings had revenue of NIS 1.64 billion, 59% less than in the corresponding period of 2019, when revenue totaled NIS 4 billion. EBITDAR for the first nine months was down 79% in comparison with the corresponding period, at NIS 283 million, and the company posted a net loss of NIS 935 million, which compares with a net profit of NIS 39 million for the first nine months of 2019.
Fattal CFO Shahar Aka said, "The company has NIS 1.5 billion cash, which will support it until a vaccine for the coronavirus becomes available. No-one is surprised by the substantial impact of the coronavirus pandemic on the company's financial results in the third quarter of this year, but thanks to careful management and our customers' need to take vacations, we ended it better than expected. We estimate that we will continue to bear the material effect of the coronavirus pandemic into the first quarter of 2021 as well, but at the same time we expect that if certain conditions that are not within the company's control are fulfilled, and on the basis of the projections of the United Nations World Tourism Organization, revenue in 2021 will be in the range of NIS 3.2-4 billion and EBITDAR will be in the range of NIS 0.8-1.25 billion."
Published by Globes, Israel business news - en.globes.co.il - on December 1, 2020
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