Hotels company Fattal Holdings (TASE: FTAL) saw a sharp rise in revenue in 2021 and substantially narrowed its loss as it returned to full activity in Israel and Europeץ
Annual revenue grew by 60% in 2021 in comparison with 2020, to NIS 3.04 billion. The growth is thanks to a rise in occupation rates for the hotel chain in Israel, the UK, and Europe in 2021, after very low occupancy rates in 2020 because of the Covid-19 pandemic.
Profit before interest, tax, depreciation, amortization and rent (EBITDAR) grew to NIS 1.19 billion in 2021, almost five times the figure for 2020 of NIS 247 million. This was a result of the rise in hotel occupancy, implementation of streamlining measures, and recognition of grants received because of the pandemic, mostly in Europe.
Fattal Holdings made a net loss in 2021 of NIS 226 million, which compares with a net loss of NIS 1.31 billion in 2020. Excluding the IFRS 16 standard on accounting for leases, the net loss in 2021 was NIS 16 million, compared with NIS 1.1 billion in 2020. The loss in 2021 was mainly because of the loss in the first quarter, when occupancy rates in the company's hotels were especially low because of pandemic-related restrictions imposed during that quarter in most of the countries in which it operates.
Fattal Holdings operates a chain of 227 hotels in Israel, Europe and the UK, with a total of some 43,000 rooms.
The company sees revenue for 2022 in the range of NIS 4.8-5.5 billion, 58-81% more than in 2021, and EBITDAR of NIS 1.5-1.7 billion. In 2019, before the Covid-19 pandemic broke out, the company's revenue was NIS 5.3 billion.
Fattal CFO Shahar ASka said, "We believe that the positive trend in the company's activity, as seen in recent quarters, will continue into the foreseeable future, on the assumption that the rise in occupancy rates will continue in the coming years, in accordance with forecasts of international bodies, alongside the understanding by many countries of the importance of living with the coronavirus."
Published by Globes, Israel business news - en.globes.co.il - on March 28, 2022.
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