Fattal Group Expands: Acquires Iconic Luxury Hotel for Nearly One Billion Shekels

The Fattal hotel chain completed the acquisition of the leasehold rights for the luxury hotel The Dilly in London on Sunday, marking a significant milestone for one of the city's flagship properties. The current acquisition deal is valued at approximately 66.5 million GBP. Previously, Fattal held a sub-lease agreement for the hotel, which it had acquired in 2022 for about 90 million GBP.

Following several years of complex negotiations, the company finalized the acquisition in a major strategic move. In addition to the purchase price, Fattal will invest approximately 60 million GBP in renovating and upgrading the iconic property. These acquisitions were made in partnership with institutional investors in the Fattal Europe 2 fund. In total, Fattal’s investment in the luxury hotel amounts to 220 million GBP (about 906 million NIS).

Opened in 1908, The Dilly is located in the heart of the West End, between Piccadilly and Regent streets, and is considered one of London's most historic and prestigious hotels. The property includes 283 rooms and suites, restaurants, a conference and events center, a spa and fitness complex, ballrooms, a swimming pool, and squash courts.

Parallel to the deal, Fattal has been carrying out a comprehensive renovation since 2025, expected to be completed by 2028, while the hotel remains open to the public. The project includes upgrading guest rooms, public areas, technical systems, and the building's facade to position the hotel as a leading 5-star deluxe destination.

The acquisition and improvement plan are supported by a financing structure provided by the business division of Bank Hapoalim, led by Shmulik Arbel. Serving as the Lead Arranger, Bank Hapoalim headed a syndicate to increase the credit facility to a total of approximately 184 million GBP, with 50 million GBP provided by Mizrahi-Tefahot Bank.

Oren Cohen, Director of the Business Division at Bank Hapoalim, stated: "We are proud to lead a complex financing deal for the acquisition of the full leasehold rights of The Dilly. This reflects the expertise we have accumulated in financing large-scale international real estate transactions."

Guy Vardi and Yaniv Amsalem, the group's Chief Business Managers, added: "We are excited to conclude this three-year negotiation process. The simplified ownership structure will allow us to complete the comprehensive renovation of this hotel, which has been an icon in the heart of Mayfair since 1908."