Fattal Hotels Partners with The Phoenix for Office Space Venture
Fattal Hotels is bringing insurance company The Phoenix into its office space operations, valuing the venture at approximately NIS 1.4 billion after investment. This strategic move involves merging Fattal's subsidiaries, Fattal Workspace (ROOMS) and Switchup. The Phoenix will invest in exchange for a stake in the new entity, which includes significant office holdings in Givatayim.
The merged company will combine Fattal Workspace, operating shared workspaces under the ROOMS brand, with Switchup, which focuses on establishing long-term leased offices. The Phoenix's stake in Beit Ha'Vard in Givatayim, comprising about 22 office floors totaling 28,000 square meters, warehouses, and parking, will be integrated. Following the merger, which values the operation at NIS 1.1 billion before the investment, Fattal Hotels will hold approximately 45.5%, Yuval Brunstein (Chairman of Fattal Holdings) about 5%, Switchup founders around 29.5%, and The Phoenix about 20%.
The consolidated entity is set to manage a substantial portfolio of office solutions, including custom-built offices, shared workspaces, concierge services, and wellness facilities. The combined company will oversee approximately 350,000 square meters of office space, primarily in Tel Aviv and Ramat Gan, with most of it already operational or nearing opening, and the remainder slated for 2026-2027.
This transaction is expected to create significant value for shareholders, particularly Fattal, which invested around NIS 240 million in the operation. Fattal's stake is projected to be worth approximately NIS 620 million post-deal, representing a value uplift of about NIS 400 million. Additionally, Switchup will distribute a dividend of approximately NIS 80 million to its shareholders before the deal closes.
The Fattal workspace initiative, established six years ago, is led by Yuval Brunstein and Nadav Fattal, who recently became CEO of Fattal Israel. Switchup's founding partners include CEO Yoni Porat, CTO Tom Kadosh, VP Business Development Oren Shellit, and VP Construction Sharon Porat. In 2025, the ROOMS and Switchup operations generated NIS 315 million in annual revenue for Fattal Holdings, with an EBITDA of NIS 82 million and a 93% occupancy rate. The company anticipates further growth in profits and occupancy to 95% in 2026.
