Israeli Hotel Chains Fattal and Israel Canada Expand in Europe by Acquiring German Revo Hospitality Assets

Israeli hotel groups Fattal and Israel Canada Hotels have taken advantage of financial difficulties faced by the German Revo Hospitality Group to expand their European operations. Revo, which operated over 260 hotels across Europe until recently, encountered cash flow problems late last year due to extensive acquisitions amid a downturn in European hospitality. In January, Revo filed for insolvency proceedings in a German court, which appointed a trustee to oversee its restructuring efforts. By June, the process accelerated as Revo sold 45 hotels and put 120 more up for sale.

Israel Canada Hotels, a subsidiary of Israel Canada controlled by Barak Rosen and Assi Tuchmaier and managed by Reuven Alex, signed a deal in June to acquire rights in four Revo-owned entities operating hotels for approximately 15.8 million euros. Meanwhile, Fattal also capitalized on Revo’s distress by purchasing rights in entities holding lease agreements for ten hotels, eight in Germany and two in the Netherlands, comprising 2,171 rooms, for 24 million euros. Fattal disclosed these entities are undergoing insolvency proceedings and belong to the same corporate group, identified as Revo Hospitality Group.

Unlike Israel Canada, Fattal already has a significant European presence, with 156 active hotels in Europe as of the end of June, alongside 49 in Israel, 61 in the UK and Ireland, and 17 in Greece and Cyprus. Both Israeli companies are thus expanding their footprint in Europe through opportunistic acquisitions amid Revo’s restructuring.

Summary: Israeli hotel chains Fattal and Israel Canada Hotels expanded their European portfolios by acquiring rights to 15 hotels from the insolvent German Revo Hospitality Group in June 2023, investing around 40 million euros combined. This move follows Revo’s insolvency filing and asset sales amid financial distress.