Fattal Expands to US, Raises 488 Million Euros for Third Institutional Partnership
Fattal Hotels Group is expanding its operations to the United States by raising 488 million euros for its third partnership with institutional investors. The company aims to increase this amount to between 800 and 900 million euros (approximately 2.7 to 3.1 billion shekels) to acquire hotels in Europe and the US. Until now, Fattal's activities were concentrated in Europe, including the UK and Ireland, and Israel, but it only approved US operations through this partnership at the end of June.
Of the initial investment commitments, about 288 million euros came from Israeli institutional investors Harel, Menora, Mor, and Phoenix, while Fattal itself committed around 200 million euros. The company expects the partnership to reach total commitments of 800 to 900 million euros in the coming weeks as more institutional investors join. These commitments will serve as equity for purchasing new hotels, which Fattal will manage, with a total acquisition budget of 2.4 billion euros.
This new partnership joins two earlier ones launched by Fattal with institutional investors in 2022 and 2024, which together raised 923 million euros in commitments, including 664 million euros from Israeli institutions. These partnerships emerged largely due to the COVID-19 pandemic and subsequent rising interest rates, which created opportunities to buy hotels at discounted prices as many properties struggled financially.
The 2022 partnership raised 381 million euros, including 100 million euros each from Menora and Harel, and purchased 19 hotels in Europe by March 2025. It delivered a 21% annual return (IRR) in 2025, distributing 12% of invested capital back to investors. The 2024 partnership secured 542 million euros in commitments and had agreements to buy 36 hotels by March 2025, with a 26.5% IRR reported in 2025 but no distributions yet.
Fattal's experience with institutional partnerships dates back to 2007, when it co-founded a hotel fund with partners including Yitzhak Tshuva’s group and major insurers. That fund acquired 18 hotels in Europe before Fattal bought out its partners in 2015 for 200 million euros, delivering a 37% return to investors.
