Israeli Hotel Chain Fattal Enters New York Market with Manhattan Hotel Purchase

Israeli hotel company Fattal, controlled by David Fattal, has made its first entry into the New York market by acquiring The Blakely hotel in central Manhattan for $38.5 million (approximately 117 million shekels). The 17-story building near Central Park and Times Square features 117 rooms. Fattal plans to close the hotel for about a year to conduct renovations estimated to cost $13 million.

This move marks Fattal's initial expansion into North America, after previously focusing on Europe, including the UK, Ireland, Greece, and Cyprus, and Israel. As of the end of March, Fattal operated 276 hotels worldwide, with 154 in Central and Western Europe (mainly Germany), 61 in the UK and Ireland, 13 in Greece and Cyprus, and 48 in Israel. Three additional hotels began operating by the end of May.

Last week, Fattal announced the formation of a third partnership with Israeli institutional investors to acquire hotels, raising 518 million euros (1.8 billion shekels). The company itself committed 200 million euros, while 318 million euros came from institutional investors including Harel, Menora, Meor, and Phoenix. Unlike the previous two partnerships formed in 2022 and 2024, this third partnership is authorized to purchase properties in the U.S., signaling Fattal's intent to expand into the American market. However, the Blakely hotel acquisition was made directly by Fattal, not through the partnership.

Fattal's entry into New York follows a similar move by the Dan Hotels chain, which last year expanded into the U.S. by acquiring a hotel in Manhattan's Soho neighborhood in October.