Fattal leases four more London hotels

David Fattal Photo: Rafi Deloya

The deal brings the Israeli chain's total number of hotels in the UK and Ireland to 51, with over 11,300 rooms.

Fattal Holdings (TASE: FTAL), controlled by its chairman and CEO David Fattal, continues to expand its business in the UK. At the end of last week, the company reported that through a wholly owned subsidiary it had leased four hotels in London for a total annual rent of £55 million.

The hotels, rated four and five star, are the 433-room Grange St. Paul's Hotel; the 307-room Grange City Hotel; the 370-room Grange Tower Bridge Hotel; and the 201-room Grange Holborn Hotel. Each of the first three hotels has an indoor swimming pool and a conference center. The Grange Holborn Hotel has both an indoor and an outdoor swimming pool.

The lease agreements are for 25 years, with an option for a five-year extension.

The owner of the hotels undertook to provide £34.5 million for renovations.

Once this deal is completed, Fattal will hold 51 hotels in the UK and Ireland with an aggregate of more than 11,300 rooms, seven of them, with an aggregate of some 2,000 rooms, in London.

Altogether in Europe, the Fattal chain has 165 hotels, 58 of them fully or partially owned, 101 leased, and 61 under management. The hotels are located in Germany, the UK, Ireland, Spain, Belgium, Italy, Cyprus, Greece, the Czech Republic, the Netherlands, Switzerland, Poland, Hungary and Austria. The largest number of hotels, 65, is in Germany.

In Israel, the chain has 40 hotels, under the Leonardo, U Hotels, Herods, NYX, and Rothschild 22 brands.

"The current deal will position Fattal as one of the main players in London, one of the world's leading tourism cities," David Fattal said. "One of the most important criteria in managing a hotel is undoubtedly its location, and today we are leasing four high quality hotels in strategic locations in the city. We believe that after we complete the renovations and implement our management strategy, they can become leading hotels in London. Three of the four hotels will come under the Leonardo Royal brand, while the fourth will operate under the NYX brand. In the past two years we have strengthened our holding in the UK and Ireland, and now have more than 11,300 rooms there. We shall continue with our strategic plan to deepen our presence in the countries in which we are active, where the chain has high management and marketing capabilities, and efficient operations."

Published by Globes, Israel business news - en.globes.co.il - on March 17, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

David Fattal Photo: Rafi Deloya
David Fattal Photo: Rafi Deloya
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