Aided by the booming domestic and global tourist scene, the shekel depreciation against the dollar, and its continued acquisitions of new hotels this year, Fattal Holdings (1998) Ltd. (TASE:FTAL) today reported strong results for the third quarter and first nine months of the year.
Revenue totaled NIS 1.07 billion in the third quarter, 41% more than in the third quarter of 2017. Operating profit grew 25% to NIS 160 million, while net profit was up 37% to NIS 111.7 million.
"We will continue our plan to enhance our presence in Europe and Israel"
Fattal finished the first nine months of 2018 with NIS 2.53 billion in revenue, 41% more than in the corresponding period last year. Fattal acquired 36 hotels of the Jurys Inn chain in the UK and Ireland in late 2017 and 13 hotels of the Apollo chain in the Netherlands in August 2018.
Operating profit in the first nine months of 2018 was up 31.7% to NIS 320 million, while net profit jumped 22% to NIS 182.6 million.
Fattal, founded in 1999 by chairperson and CEO David Fattal, who owns 63.5% of its share capital, has 36,500 hotel rooms in 190 hotels in 17 countries. The chain has 40 hotels in Israel, of which it owns 24 fully or partially, rents 10, and manages six. The hotels in Israel are under the Leonardo, U, Herod's, NYX, and Rothschild 22 brands.
The chain has a total of 150 hotels in Europe, of which it owns 52 fully or partially, rents 92, and manages six. Most of Fattal's hotels are located in Germany, the UK, and Ireland.
Fattal became a public company in February 2018, raising NIS 500 million in its IPO at a company value of NIS 4.5 billion after money. The company's share price surged 41% since its February IPO, propelling its market cap to NIS 6.3 billion.
Commenting on his company's results, Fattal CFO Shahar Aka said, "During the past quarter, we acquired a hotel and two nearby lots in Edinburgh in Scotland on which we plan to expand the existing hotel and build a new NYX hotel. In addition, we completed the acquisition of 13 Apollo hotels in the Netherlands and made the chain prominent in the country and the largest chain in Amsterdam. Together with the Pandox hotel chain, we also acquired the luxury Midland Manchester Hotel. We will continue our strategic plan to enhance our presence in Europe and Israel, and add value for investors and our partners by expanding and bolstering the company's activity to new instruments. and by improving revenue and profits."
Published by Globes, Israel business news - en.globes.co.il - on November 28, 2018
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