Photo: Shutterstock Fattal Holdings Group, the international hotel chain led by David Fattalconcluded 2024 with outstanding financial results, marking yet another record-breaking year in the hospitality industry.
The company reported a net profit of approximately 278 million shekels, a dramatic sixfold increase compared to the previous year’s net profit of about 45 million shekels.
The total profit for the year soared to approximately 834 million shekels, highlighting the group's operational efficiency and strategic positioning in a challenging global tourism landscape.
Fattal's total revenue for 2024 reached approximately 7.9 billion shekels, reflecting an 8% year-over-year growth compared to 7.34 billion shekels in 2023. Notably, 7.4 billion shekels of this revenue were generated from accommodation services, underscoring the group’s core strength in hotel operations. This growth was driven by several key factors, including higher average room rates, increased occupancy across multiple regions, and the opening of new hotels in both existing and emerging markets.
With a diversified international portfolio and a strong presence in key tourist destinations, Fattal Holdings continues to solidify its position as one of the leading players in the global hospitality sector.
Average Occupancy of 77% and Revenue of 554 Shekels Per Room
In 2024, the average occupancy across Fattal Group’s hotels rose to 77%, up from75.7% the previous year. In Europe, occupancy reached 77%, slightly higher than 76% in 2023, while in the UK and Ireland, it climbed to 81% from 80%. In contrast, Israel saw a slight dip in occupancy rates, falling to 69% compared to 70% the year before.
Meanwhile, the group’s average revenue per available room (RevPAR) increased to 554 shekels, reflecting an improvement from 538 shekels in 2023 — a sign of stronger pricing power and improved demand across key markets.
Activity in Israel – Only a Fifth of Revenue
Hotel revenues in Israel totaled approximately 1.89 billion shekels — about 23% of total revenues, down from 1.91 billion shekels the previous year. Hotel revenues in Europe (excluding the UK and Ireland) amounted to about 2.93 billion shekels — an increase from 2.63 billion shekels.
In the UK and Ireland, revenues increased to 2.42 billion shekels, compared to 2.22 billion shekels in 2023.
David Fattal. Photo: FattalRecord Operating Profit, Decline in Financing Income
Fattal's operating profit in 2024 surged to 1.576 billion shekels, compared to 1.109 billion shekels the previous year. However, there was a decline in financing income — only 190 million shekels, compared to 787 million shekels in 2023.
Financing expenses rose to 341 million shekels, compared to 314 million shekels last year — an increase due to the expansion of the group's credit.
2025 Forecast: Revenue of Up to 8.5 Billion Shekels
Fattal continues to present optimistic forecasts for the coming year: the company anticipates revenues ranging from 8.2 to 8.5 billion shekels in 2025. According to the forecast, the EBITDAR will range between 3 to 3.2 billion shekels, and the FFO will be between 1.05–1.25 billion shekels.
Additionally, the company estimates that 41 new hotels expected to open by the end of 2029 will yield an additional annual EBITDA of about 360 million shekels.
Extensive International Operations
Fattal Group currently operates 303 hotels in 21 countries, of which 257 are active, with approximately 53,000 accommodation rooms. Its international operations account for about 80% of the company's revenues. In 2025, 16 new hotels are expected to open.
According to Shachar Aka, Director and CFO of the Group: “Fattal presents record results despite the decline in the euro and global inflation, and we expect significant continued growth in 2025.”
Growth Engines: Partnerships and Institutional Investments
Fattal reports success in raising capital for the third partnership it established with institutional entities. This partnership has already received commitments amounting to approximately 542 million euros — higher than the original target of 400 million. In total, the three partnerships have raised about 1 billion euros so far.
For the first time, the company notes the contribution of the partnerships to EBITDA: in 2024, the contribution stood at 25.5 million euros and is expected to rise to 46 million euros in 2025. The growth is expected to continue with the opening of new hotels and the entrance of additional partners.
Negative Fourth Quarter
Despite a strong year, the fourth quarter of 2024 ended with a loss of about 30.8 million shekels, compared to a loss of 3.5 million shekels in the corresponding quarter last year.
Revenues for the quarter amounted to about 1.86 billion shekels, and the operating profit stood at about 282.5 million shekels. However, high financing expenses — about 263.6 million shekels — impacted net profit and led to a loss.
