Fattal Hotels Raises 848 Million Euros for Third Partnership, Expands in Europe

Fattal Hotels has secured 848 million euros in investment commitments for its third partnership with institutional investors, with the company contributing 200 million euros and the institutions providing the remaining 648 million euros. This initiative is part of Fattal's strategy to expand its operations in Europe, its primary market, by acquiring new hotels without requiring significant personal capital or debt. The partnership has already initiated its first acquisitions, purchasing two hotels in England and France.

The third partnership, launched in July, initially aimed to raise between 800 and 900 million euros, later increasing the maximum target to one billion euros. This follows two previous successful partnerships with institutional investors, initiated in 2022 and 2024, which raised 381 million euros and 542 million euros respectively. These earlier partnerships yielded annual returns on investment (IRR) of 21% and 26.5% for investors by 2025.

Fattal's European presence is substantial, with 218 of its 283 active hotels located there as of the end of June. The company views Europe as a stable operating environment, unlike Israel, which has experienced security-related disruptions. The current expansion strategy, facilitated by these partnerships, is partly driven by acquisition opportunities that arose due to the COVID-19 pandemic and subsequent interest rate hikes, which created financial pressure on many property owners.

In addition to expansion through partnerships, Fattal is pursuing independent growth, including the acquisition of operating rights for 10 hotels in Germany and the Netherlands in August. The company's stock has seen a 3% decrease since the beginning of the year, underperforming the TA-125 index, but is performing better than some Israeli competitors like Isrotel and Dan Hotels.