Home News Fattal acquires 6 hotels in Spain for €165.5 million

Fattal acquires 6 hotels in Spain for €165.5 million

A major deal for Fattal Hotels in Europe: The company acquires six hotels in Ibiza and Mallorca as part of a partnership project between Fattal and institutional bodies. Managing Director of Fattal Hotels in Spain: "Integrating the new hotels and rebranding is a significant part of our work routine"

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Ibiza. Photo: Shutterstock

Another huge deal for Fattal Europe.

The company reports today (Sunday) to the Tel Aviv Stock Exchange the signing of a binding agreement with the KKR Investment Firm to indirectly or directly purchase the full share capital of four Spanish companies owning four hotels and two apartment hotels, part of the ALUA chain in Spain, for 165.5 million euros. Both partners’ resources will finance the transaction, in addition to a loan of approximately 95 million Euros that the partnership intends to receive from a banking entity.

Located on the beaches of Ibiza and Mallorca, these six hotels are rated 4-stars, offering a total of 1,119 rooms. The newly purchased hotels will join two others acquired by the partnership in Malaga and Palma.

The hotels are Alua Hawaii Ibiza (209 rooms), Alua Miami Ibiza (360 rooms), Aluasun Miami Ibiza apartment hotel (82 apartments), Alua Hawaii Mallorca & Suites (230 rooms), Hawaii Mallorca Suites Palmanova (68 rooms), and Alua Palmanova Bay Hotel (170 rooms).

David Fattal. Photo: PassportNews

All hotels are considered top-tier in their respective areas and boast swimming pools, restaurants, gyms, kids’ clubs, and bars. In recent years, around 14 million euros have been invested in renovating the newly acquired hotels, and the company intends to invest an additional 20 million euros in renovations and upgrades. With the acquisition of the six hotels, Fattal is deepening its hold in Spain, reaching a total of 16 hotels in the country.

The company further states in its report to the stock exchange that these are leading tourist areas where the average seasonal occupancy rate in 2019 was about 92%. In addition, the hotels have recovered nicely from the pandemic in 2021, reaching an occupancy rate of about 74% this year compared to pre-pandemic numbers. Following the acquisition, Fattal is expected to rebrand the hotels with its well-known European brands, such as Leonardo, Leonardo Royal, and NYX.

Guy Vardi and Yaniv Amzaleg, managing the partnership in Spain for Fattal Europe: “The current deal once again reflects Fattal’s ability to identify opportunities and execute significant transactions with top international entities and partners, to create diversity and value for our investors.”

The two have recently joined Fattal to lead the company’s international mergers and acquisitions and partnerships with institutional bodies. Vardi and Amzaleg bring significant experience in international transactions after leading Globe Invest, Teddy Sagi’s investment company.

Shay Raz, Managing Director of Fattal Hotels in Spain: “In recent years, Fattal has built a robust and profitable management platform for managing chain hotels in Spain, in line with the company’s growth strategy to expand into the most attractive areas in continental Europe. Integrating the new hotels and rebranding is a significant part of our work routine, and we are happy to invest in the Balearic Islands. “

Ronen Nissenbaum, CEO of Fattal Hotels in the UK, Benelux, and Spain: “I welcome the acquisition of the six hotels and their integration into the chain’s distributed and high-quality portfolio. In fact, with this acquisition, the company is strengthening its dominant presence in holiday destinations across Europe, including the Netherlands, Greece, Cyprus, the UK, and Germany. We trust our capability to turn them into financial success and provide our customers with a greater range of hotels for business and leisure. “

David Angulo, Chairman, Dunas Capital: “We had the honor to work with KKR and the Alua hotel chain and, in fact, to share our expertise in the Spanish market and add value to the quality portfolio with prime assets. The combined abilities of the three teams yielded great results. We believe in the Spanish tourism sector that continues to have great potential and congratulate Fattal on identifying the opportunity and purchasing these hotels.”

Palma de Mallorca. Photo: 123rtf

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