Fattal and Shlomo Group acquire Madrid hotel

David Fattal, photo: Alon Ron
David Fattal, photo: Alon Ron

Fattal has leased the Spanish hotel for 20 years from Shlomo Group after acquiring hotels in Scotland and Slovenia last week.

Shlomo Group unit SHIR Shlomo Real Estate Ltd. has expanded its cooperation with Fattal Properties (Europe) in Europe. Both companies announced that they had made a joint €30 million (NIS 130 million) investment in acquiring the Gran Atlanta Hotel in Madrid, Spain.

The Gran Atlanta is a four-star hotel with 180 rooms. The partners will pay €24 million for the hotel and intend to invest a further €6 million in renovations expected to begin in the first quarter of 2017. They plan to obtain financing for 60% of the deal from a foreign bank and pay for the remainder using their own resources.

In parallel to this deal, the companies have signed a lease agreement with a company fully controlled by Fattal, which will lease the hotel for 20 years to the Leonardo chain brand, for a fixed lease of €2.1 million and a further sum of over €5 million that will vary based on the hotel's revenue.

Fattal and SHIR Shlomo Real Estate began cooperating in 2014, when the latter leased a 5-star hotel with almost 200 rooms in Manheim, Germany to Fattal for 25 years, for a fixed lease of €2.4 million and lease varying on hotel revenue of over €8.75 million.

Last week, Fattal signed an agreement to buy an hotel in Scotland for £43.5 million and four hotels in Slovenia for €45 million.

Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

David Fattal, photo: Alon Ron
David Fattal, photo: Alon Ron
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