Globes: Fattal becomes UK’s second biggest hotel chain
The Israeli company signed an £800 million agreement with the Swedish Pandox chain to lease and manage 36 hotels in the UK and Ireland.
Fattal Hotel Management Ltd. and Swedish hotel chain Pandox have signed an £800 million agreement. Fattal is buying 36 of the Jurys Inn chain’s management and rental agreements for £120 million, and Pandox is buying 20 of Jury Inn’s hotels from the Lone Star private equity fund for £680 million.
By the end of the year, Jurys Inn’s revenue is projected to total £225 million, with a £60 million operating profit.
Fattal Hotel Management chairperson David Fattal said, “This is the biggest hotel deal ever by an Israeli company in Europe. The current deal will strengthen the Fattal chain’s standing in Europe, and make it the second largest hotel chain in the British Isles. Following the deal the number of the chain’s hotels will rise to 162, and the number of rooms will increase by 32% to over 31,000. The company’s revenue is expected to grow by 37%, and the deal is projected to contribute £20-25 million a year to EBITDA. This is not the first case of cooperation between the Fattal chain and Pandox; in 2015, the companies signed an agreement for the sale of 18 hotels in Germany. We will continue to operate according to our strategic plan, and extend our foothold in Europe through the Leonardo and NYX brands.”
The hotels in which Fattal Hotel Management is acquiring management and rental agreements are located in the UK and Ireland. The current deal is for 25-35 years. Fattal Hotel Management has hotels in Germany, the UK, Israel, Spain, Belgium, Ireland, Italy, Cyprus, the Czech Republic, the Netherlands, Switzerland, Poland, Hungary, and Austria. The new deal makes the UK Fattal Hotel Management’s second biggest center, with 42 hotels, following Germany with 56 hotels.