Fattal Invests $275 Million to Expand Leasehold Rights and Renovate The Dilly Hotel in London
Fattal Hotels is investing 66.5 million pounds (approximately 275 million shekels) to acquire the primary leasehold rights of The Dilly, a luxury hotel in London. The company also plans to invest an additional 60 million pounds (about 248 million shekels) in renovating the property. These investments add to the 90 million pounds Fattal spent in 2022 to acquire secondary leasehold rights, bringing the total investment in the hotel to around 220 million pounds (900 million shekels).
The acquisition of the primary leasehold rights from The Crown Estate, a British investment fund that recently secured the leasehold rights of the building housing the hotel, will allow Fattal greater independence in managing renovations and improving cash flow. The Crown Estate retains a partnership with Norway's sovereign wealth fund on the land beneath the property. Bank Hapoalim is leading the financing for the purchase and renovation with 170 million pounds, including 50 million pounds from Mizrahi Tefahot Bank.
Located in London's West End between Piccadilly and Regent Streets, The Dilly has 283 rooms. Renovations began last year and are expected to conclude by 2028. Initial renovation cost estimates were 85 million pounds, but the current estimate is 60 million pounds. The Dilly is one of 61 hotels Fattal operates in the UK and Ireland, its second-largest market after continental Europe, where most hotels are in Germany.
Fattal's revenues in the UK and Ireland reached 2.35 billion shekels in 2025, compared to 3.1 billion shekels in Europe and 1.98 billion shekels in Israel. However, revenues declined by 3% from 2024, and EBITDAR fell 10% to 780 million shekels due to rising labor costs. Recently, Fattal entered the U.S. market by acquiring its first hotel in Manhattan.
Fattal is Israel's largest publicly traded hotel company by market value and hotel portfolio, operating alongside other Israeli hotel chains such as Isrotel, Dan Hotels, and Israel Canada Hotels. Despite a 14% stock increase over the past year, Fattal underperformed the Tel Aviv 125 index, which rose 33%, affected by Israel's security situation and tourism challenges.
