Following Israel Canada Hotels: Fattal also bites into the assets of the German giant that fell into difficulties

Fattal and Israel Canada Hotels took advantage of the difficulties encountered by the German hotel group Revo Hospitality Group to expand their operations in Europe. Both companies stepped into the shoes of the German firm and are acquiring rights in corporations that together operate 15 hotels in Germany and the Netherlands, for a total consideration of approximately 40 million euros.

Revo, which until the last few months operated more than 260 hotels in Europe, encountered cash flow difficulties at the end of last year, following numerous acquisitions made alongside a decline in hotel activity. In January, it turned to a court in Germany with a request to initiate insolvency proceedings, and a trustee was appointed to oversee the recovery procedures. The proceedings accelerated in June, after Revo sold 45 of the hotels it operated and put 120 more up for sale.

Israel Canada Hotels, the subsidiary of Israel Canada controlled by Barak Rosen and Asi Tuchmaer and managed by Reuven Alex, entered into a transaction in June to acquire the rights in four corporations that were owned by Revo for 15.8 million euros.

However, it turns out that Fattal also took advantage of Revo's difficulties. In a note attached to the quarterly report published on Tuesday, the hotel group reported that in June it entered into several agreements to acquire rights in corporations holding lease agreements for ten hotels—eight in Germany and two in the Netherlands—containing 2,171 rooms, for a consideration of 24 million euros.

Fattal further reported that the relevant corporations are in insolvency proceedings and that it is examining additional engagements regarding other hotels leased by the same group. It has become known to Calcalist that the entity in question is Revo Hospitality Group.

Unlike Israel Canada Hotels, Fattal already holds extensive operations in Europe, mainly in Germany. As of the end of June, its European operating segment included 156 active hotels, alongside 49 in Israel, 61 in the UK and Ireland, and 17 more in Greece and Cyprus.