Fattal Europe 2 Fund Completes £220 Million Deal for Historic London Hotel

The Fattal Europe 2 fund has finalized a major acquisition worth £220 million, including financing of £50 million provided by Mizrahi Tefahot Bank. Bank Hapoalim has expanded its infrastructure financing activities in recent years, particularly in transportation, energy, and hospitality sectors, both directly and through credit packages. Previously, Fattal held a sub-lease agreement on the hotel purchased in 2022, financed by Bank Hapoalim for £90 million. After complex negotiations, Fattal completed the purchase of the leasehold rights and plans to invest an additional £60 million in renovating and upgrading the property.

The hotel, The Dilly, opened in 1908 and is located in London's West End between Piccadilly and Regent Streets. It is considered one of the city's historic and prestigious hotels, featuring 283 rooms and suites, restaurants, cafes, conference and event centers, a spa and fitness area, ballrooms, a swimming pool, and squash courts. Renovations are expected to be completed by 2028 and will include upgrades to guest rooms, public areas, technical systems, and the building facade.

Fattal Group's investment strategy focuses on acquiring high-quality hotel assets in prime European locations, enhancing their value over time, and strengthening its position in the London hospitality market. Fattal's Leonardo Hotels brand is the largest Israeli hotel chain globally, with 264 hotels across 21 countries in Europe and the Mediterranean basin, including the UK, Germany, France, Spain, Belgium, Italy, Cyprus, Greece, Czech Republic, Netherlands, Switzerland, Poland, Portugal, Hungary, Austria, and Romania, as well as operations in the US.

Other Israeli hotel groups, such as Isrotel, have also expanded internationally in recent years, acquiring properties in Athens and Cyprus in partnership with Israeli investors. Fattal's hotel network totals 330 hotels with over 57,000 rooms in more than 140 destinations worldwide, operating under brands including Leonardo, U, NYX, Herods, Colors, Master, and Fattal Limited Edition.