Fattal Holdings (1998) Ltd. (TASE: FTAL), controlled by David Fattal, notified the Tel Aviv Stock Exchange (TASE) this morning that its new hotel venture in Europe, set up as a partnership with institutional investors to buy hotels in Europe, has signed a binding agreement together with the KKR investments fund, to purchase, directly or indirectly, four Spanish companies holding ownership rights for four hotels, and two apartment hotels from the Spanish Alua chain, for €165.5 million. When the deal is completed, Fattal will own 16 hotels in Spain.
Of the new hotels purchased, Fattal will own 33%, Harel 20%, Menorah Mivtachim 20% and Leumi Partners, Hachshara Insurance and Shlomo Insurance together 27%. The hotels acquired are four-star establishments with 1,119 rooms on the seafront in Ibiza and Majorca. The partners will finance the deal from their own funds and a €95 million bank loan. The partners have already bought two hotels in Malaga and Palma.
Fattal said that in recent years €14 million has been invested in renovating the hotels and plans are for €20 million more to be invested in renovating the hotels and improving their appearances and facilities.
When the acquisitions are completed, Fattal will rename the hotels under its various brands including Leonardo, Leonardo Royal and NYX.
Published by Globes, Israel business news – en.globes.co.il – on July 10, 2022.
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