Fattal Hotels Founder David Fattal Discusses Company Growth and Future
David Fattal, the controlling shareholder of Fattal Hotels, shared insights into his management philosophy and the company's remarkable growth in an interview with Globes. Fattal emphasizes the importance of small details in hospitality, exemplified by a program where guests can give vouchers to outstanding employees. He believes in actively engaging with both guests and staff, a hands-on approach he attributes to his success.
Fattal Hotels, founded in 1998 and publicly traded on the Tel Aviv Stock Exchange since 2018, has seen its market value double to 12 billion shekels. The company operates 328 hotels across 22 countries, with 80% located in Europe and 20% in Israel. While Israeli hotels often focus on family resorts and boutique options, European properties historically targeted business travelers, though this has shifted post-pandemic. The company also manages the de luxe Limited Edition brand and other labels like Leonardo and Nyx.
Fattal began his career as a bellboy at the Dan Carmel hotel and worked his way up through various roles, falling in love with the hospitality industry. He admits he hasn't taken a vacation in Israel since starting his career, as he cannot relax when staying at competitor hotels or even his own properties, where he remains focused on operations. He closely monitors customer reviews on platforms like Booking.com, using them to identify areas for improvement.
The company has faced challenges, including a severe labor shortage, particularly in cleaning staff, and a generational shift in the workforce. To address this, Fattal Hotels maintains a policy of employing individuals with special needs in every hotel. Fattal also highlighted regulatory hurdles in Israel that prompted international expansion, citing competition authorities' concerns about market dominance.
Despite the significant impact of the COVID-19 pandemic, which saw the company's stock value plummet, Fattal remained optimistic, rallying his global management team to navigate the crisis. The company managed to secure new financing and partnerships, acquiring 19 hotels within a year. Fattal Hotels has since experienced a substantial stock rebound, growing by 870% post-pandemic.
Looking ahead, Fattal sees strong potential in Europe due to increasing demand and limited new construction, leading to higher occupancy and prices. He also noted the growth of apartment hotels, which require less staff due to the absence of reception and restaurant services. Fattal remains committed to the company's long-term vision, viewing it as a legacy for his heirs, and has no plans to sell.
