Israeli hotel company Fattal Holdings (1998) Ltd. (TASE:FTAL) today reported that a fully-owned unit of its subsidiary Fattal Properties Europe has agreed to buy a lot containing a 186-room hotel and another nearby lot containing a residential building in the Scottish capital of Edinburgh, for £52 million, not including VAT.
Fattal Properties acquired all the rights in the existing hotel, leased to the Jury's Inn company, also a unit of Fattal Holdings.
The company plans to build another wing of the existing hotel on the first lot with 101 rooms at an added cost of £14 million, giving the finished hotel a total of 287 rooms. The company said that the existing building plans allow obtaining building permits in order to expand the hotel.
On the nearby lot, which requires rezoning, the company plans to build a new 131-room NYX hotel at a total cost of £17 million, plus 31 housing units at a cost of £1 million.
The report also said that Fattal expects expansion and renovation of the existing hotel and construction of the new hotel and 31 housing units to begin in the first half of 2019 and be completed by the first quarter of 2021.
The company will pay 60% of the cost of the deal, expansion and renovation of the existing hotel and construction of the new hotel and the housing units with a bank loan and the other 40% from its own resources. The deal will probably be completed by November 30, 2018.
Last Thursday, Fattal Holdings announced the completion of a deal to acquire the entire share capital of a Dutch holding company holding ownership management, and leasing rights to 13 Apollo hotels for €153 million, subject to adjustments and not including expenses in the deal.
The acquired hotels, which contain a total of over 1,900 rooms, have ratings of 4 or 5 stars. When the deal is completed, the chain will have 14 Dutch hotels with a total of 2,041 rooms, not including a hotel under construction in Amsterdam scheduled for completion in 2019 that will contain 490 rooms.
Fattal Holdings, controlled by the Fattal family with a 72.1% share, was founded by David Fattal. It holds, operates, rents, and manages hotels in Israel and Europe and acquires and builds new hotels. The chain currently operates 36,000 rooms in 186 hotels in 17 countries.
Fattal is managed in Europe by Daniel Roger. The chain has 146 European hotels there: 52 all or partly owned, 89 rented, and five managed.
David Fattal said, "When the deal is completed, Fattal Holdings will have 11 hotels in Scotland, including four in Edinburgh, the second most important tourist site in the UK, and a total of 43 hotels in the UK. The deal in the Netherlands has made the chain a significant player in the country with 15 hotels, including the largest hotel in Amsterdam."
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2018
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