Fattal becomes UK's second biggest hotel chain

David Fattal, photo: Alon Ron

The Israeli company signed an £800 million agreement with the Swedish Pandox chain to lease and manage 36 hotels in the UK and Ireland.

Fattal Hotel Management Ltd. and Swedish hotel chain Pandox have signed an £800 million agreement. Fattal is buying 36 of the Jurys Inn chain's management and rental agreements for £120 million, and Pandox is buying 20 of Jury Inn's hotels from the Lone Star private equity fund for £680 million.

By the end of the year, Jurys Inn's revenue is projected to total £225 million, with a £60 million operating profit.

Fattal Hotel Management chairperson David Fattal said, "This is the biggest hotel deal ever by an Israeli company in Europe. The current deal will strengthen the Fattal chain's standing in Europe, and make it the second largest hotel chain in the British Isles. Following the deal the number of the chain's hotels will rise to 162, and the number of rooms will increase by 32% to over 31,000. The company's revenue is expected to grow by 37%, and the deal is projected to contribute £20-25 million a year to EBITDA. This is not the first case of cooperation between the Fattal chain and Pandox; in 2015, the companies signed an agreement for the sale of 18 hotels in Germany. We will continue to operate according to our strategic plan, and extend our foothold in Europe through the Leonardo and NYX brands."

The hotels in which Fattal Hotel Management is acquiring management and rental agreements are located in the UK and Ireland. The current deal is for 25-35 years. Fattal Hotel Management has hotels in Germany, the UK, Israel, Spain, Belgium, Ireland, Italy, Cyprus, the Czech Republic, the Netherlands, Switzerland, Poland, Hungary, and Austria. The new deal makes the UK Fattal Hotel Management's second biggest center, with 42 hotels, following Germany with 56 hotels.

The Jurys Inn hotel chain, founded in Ireland in 1839, has a high rating from leading tourist websites, with an emphasis on the business sector. Its occupancy rate is 79.5%.

Fattal Hotel Management, founded in 1998 by David Fattal, has 38 hotels in Israel: 17 owned, 14 rented, and seven managed. The chain's brands include Leonardo, U, Herods, NYX, and Rothschild 22. Following the deal, Fattal Hotel Management will have 124 hotels in Europe: 47 fully or partly owned, 75 rented, and three managed. Daniel Roger manages the chain in Europe, which has its headquarters in Berlin. In tandem with lawyers from the UK, the Gornitzky & Co. law firm represented Fattal in the deal.

Published by Globes [online], Israel Business News - www.globes-online.com - on December 13, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

David Fattal, photo: Alon Ron
David Fattal, photo: Alon Ron
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