Fattal Secures 848 Million Euros for Third Hotel Partnership in Europe
Fattal Hotels' third investment partnership has raised 848 million euros from institutional entities toward a 1 billion euro target, funding new hotel acquisitions in the UK and France.
Fattal Hotels' third partnership has secured 848 million euros in investment commitments from institutional entities, approaching its target of up to 1 billion euros. Fattal contributes 200 million euros, while institutional investors provide 648 million euros. Concurrently, the partnership has completed its initial transactions to acquire two hotels in the United Kingdom and France.
Expanding European Operations
Launched in July, the third partnership initially targeted between 800 and 900 million euros before raising the maximum goal to 1 billion euros. This initiative follows two previous joint ventures with institutional investors established in 2022 and 2024, which raised 381 million euros and 542 million euros respectively. Key institutional participants include Menora Mivtachim, Harel Insurance & Finance, Meitav, Phoenix Holdings, and Migdal Insurance.
The first two partnerships yielded strong annual returns (IRR) in 2025, recording 21% for the 2022 partnership and 26.5% for the 2024 partnership. These structures enable Fattal to expand its footprint in Europe—where it operated 218 of its 283 active hotels as of the end of June—without risking high equity investments or excessive debt.
Market Opportunities and Strategy
The acquisition opportunities targeted by Fattal stem largely from pandemic-era disruptions and rising interest rates. Elevated financing costs during the pandemic placed heavy burdens on property owners, creating opportunities for asset acquisitions at discounted prices. Fattal provides management expertise, reputation, and partial capital, while institutional partners supply the majority of the funding.
Traded with a market capitalization of 10.4 billion shekels, Fattal shares have dipped 3% since the beginning of the year, outperforming domestic competitors Isrotel and Dan Hotels, whose shares fell 19% and 33% respectively.
