Fattal Hotel Management Chain Ltd. unit Fattal Properties (Europe) (TASE: FTEU) is continuing its expansion in Europe. The company, which has two series of bonds traded on the TASE notified the stock exchange that it has signed an agreement with a Scottish holding company to buy five hotels in Scotland for about £42 million (NIS 195 million). The deal was completed yesterday.
The five hotels have 536 rooms altogether, 300 of them in four start hotels and the remainder in three and three plus star hotels. Two of the hotels with 111 and 52 rooms are in Edinburgh, one 137-room hotel is in Glasgow, one 202 room hotel is in Aberdeen and the fifth hotel, with 34 rooms, is in Perth.
Fattal will finance 40% of the deal from its own equity and 60% from external financing.
Fattal Hotel Management owner David Fattal said, "The purchsase of the five hotels is part of our strategic plan to expand to Europe's outstanding tourist and business destinations. Scotland is one of the world's most beautiful companies and a popular tourist destination attracting hundreds of thousands of tourists annually. We will continue deepening our foothold in Europe through the Leonardo and NYX brands.
Fattal Properties (Europe) saw revenue rise 16% to €7 million in the first quarter with €6.4 million NOI.
Founded in 1998, Fattal Hotel Management has 113 hotels of which 76 are in Europe and held by Fattal Properties (Europe). 42 are full owned, 32 are leased and two managed.
In Israel the privately held parent company has 37 hotels, of which 17 are fully or partly owned, 13 are leased and 7 managed.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2017
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