Fattal Acquires Two Hotels in Bucharest and Budapest, spending €26.5m

Main Photo: The M-Square Hotel, Budapest

Date: February 2020

Location: City Centre/Old City Bucharest, Romania and Budapest, Hungary

Name: Golden Tulip Bucharest and the M-Square Budapest, both to be renamed under the Fattal brand

No. of Keys: 71 & 81

Seller: Accent Hotels, owners of some 20+ hotels in Hungary and Atlas Real Estate, a general property company with apartments, offices, retail and hotels in Central and Eastern Europe, including the Hilton Warsaw.

Buyer: In addition to land acquisition in the Old City, Lisbon, Portugal and Liverpool, UK to build 150-key five-star and a 210-key hotel, respectively, Fattal has made a further two acquisitions in Eastern Europe.

In the first deal, Fattal acquired the M square hotel in central Budapest, Hungary’s 71-room capital, for around €17 million. The hotel was renovated last year and reopened last October.

The second – the purchase of the Golden Tulip Hotel in Bucharest, the capital of Romania, for about €9.5 million. The hotel has 81 rooms and is located in the city centre and near the Old City.

These transactions are funded by the Company from its independent sources and it examines various means of financing the transactions at up to 60%.

Stock Fatal Today, the stock traded down 2.4%. Since joining the Public Companies Club about two years ago, the share has risen 64% and the company’s value has reached NIS 7.3 billion.

The Fattal Hotel chain, which is controlled by David Fattal (56.5%) currently holds approximately 43,000 rooms in 225 hotels (including hotels under construction) in 20 countries. 93 hotels are owned by the company, 122 are leased and ten more are providing management services. The country has 49 hotels and 176 hotels in Europe.

According to David Fattal, “Portugal has become one of the most attractive destinations in Europe in the last five years and has seen an 80% increase in the number of tourists entering it each year. The Fattal network first entered Portugal last year and together with a hotel partner in the city of Porto we intend to deepen our hold on it “.

He added: “At the same time, we have deepened our hold in the UK and acquired a property voucher in the centre of Liverpool on which we are expected to build a 210-room hotel, so that, after its construction, we will hold 52 hotels in the UK. The company’s strategy to acquire prominent hotels in major cities and tourist areas in Europe, and to deepen our hold through the “Leonardo” and “NYX” brands.

The recent acquisitions are joined by several major deals made by Fattal in Europe in recent years, including the acquisition of Jurys Inn (36 hotels in the UK and Ireland) and Apollo (13 hotels in the Netherlands) in August 2018, and the acquisition of four hotels (Grange) In central London last March.

The boom in tourism alongside the acquisitions led to 58% growth in fatal revenue in the first nine months of 2019, compared with the corresponding period in 2018, to NIS 4 billion. Fattal’s EBITDA increased 52% to NIS 1.34 billion, while operating profit grew 78% to NIS 572 million.

Price: €17m and €9.5m

Price per key: €239,437 and €117,284

THPT Comment: No stopping Fatal in it’s quest to build the major force in Europe it is rapidly becoming.

First Seen: News1

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