Fattal Hotel Management, Tel-Aviv, will officially announce on Thursday it is purchasing for €300 million (US$392 million) from Goldman Sachs 20 hotels in Germany, which are currently operated under the Holiday Inn and Best Western brands, sources have told HOTELS.
Reportedly the largest hotel deal originated from Israel, Fattal intends to immediately re-brand 13 of the 20 hotels to its Leonardo brand and seven hotels will remain under the Holiday Inn flag. The hotels, with 3,649 rooms located in 14 major cities in Germany as well as in conference centers and airports, had an average occupancy rate of 67% in 2011 and €107 million (US$140 million) revenue.
With the completion of the deal that includes multiple investment partners, Fattal will own and manage 55 in Europe with 9,000 rooms, of which 45 hotels are in Germany.
“This deal is a sign of pride for Israel and Israeli hoteliers,” said Fattal Group CEO David Fattal. “We have turned Leonardo into one of the leading and recognizable hotel brands in Europe.”