Hotel Company Fattal Holdings Concludes 2021 with a sharp increase in revenues and a significant reduction in losses, against the background of a return to full activity in Israel and Europe.
Revenues in 2021 grew by about 60% compared to 2020 to about NIS 3.44 billion. The sharp growth in revenue is attributed to an increase in the network’s occupancy rates in Israel, the United Kingdom and other European countries during 2021, while 2020 was characterized by particularly low occupancy rates as a result of the outbreak of the corona crisis.
Profit before rent, depreciation and other expenses (EBITDAR) in 2021 increased to NIS 1.19 billion, almost five times compared to a profit of NIS 247 million in 2020, as a result of the said increase in revenues, implementation of efficiency measures taken by the company and recognition of grants due to the Corona crisis , Most of which were given to the company mainly in Europe.
The bottom line is recorded Fattal Holdings A net loss of NIS 226 million, compared with a loss of NIS 1.31 billion in 2020. Excluding the IFRS16 standard, the company ended 2021 with a loss of NIS 16 million, compared with a loss of NIS 1.1 billion in 2020. The loss in 2021 is mostly attributed to a loss in the first quarter of the year due to the particularly low occupancy rates in the chain’s hotels due to the restrictions imposed in that quarter in most of the countries in which the company operates.
Fattal, which operates a chain of 227 hotels in Israel, Europe and the UK, which includes about 43,000 guest rooms, ended the fourth quarter last year, with a jump of 274% in revenue compared to the corresponding quarter in 2020, to about NIS 992 million. EBITDAR in the fourth quarter increased to NIS 341 million, compared to a loss of NIS 36 million in the corresponding quarter in 2020, mainly as a result of the said increase in revenues, implementation of streamlining measures taken by the company and recognition of grants for the corona crisis.
The net loss was reduced to NIS 19 million, compared with a loss of NIS 379 million in the corresponding quarter in 2020. Excluding the IFRS16 standard, the company ended the quarter with a net profit of NIS 58 million, compared with a loss of NIS 347 million. In the corresponding quarter in 2020.
Cash flow from operating activities in 2021 amounted to NIS 374 million, compared with a negative cash flow of NIS 254 million in 2020.
The company’s management, led by the founder, controlling shareholder, chairman and CEO, is now watching David Fattal, That its revenues in 2022 will be NIS 4.8-5.5 billion – an increase of 81% -58% compared to revenues in 2021 (in 2019, before the outbreak of the corona plague, the chain’s revenues totaled NIS 5.3 billion). In addition, the company set an EBITDAR forecast for 2022 in the range of NIS 1.5 – 1.7 billion.
Shahar Aka, director and CFO of the company, stated that “We conclude the fourth quarter of 2021 with a sharp growth in revenues, in support of the increase in occupancy rates. At the same time, we have shown an impressive increase in EBITDAR thanks to the actions we have taken since the outbreak of the corona crisis to reduce spending, along with continued recognition of government grants. “
“We believe that the positive trend in the company’s business activity, as reflected in recent quarters, will continue in the foreseeable future, with the expectation that the increase in occupancy rates will continue in the coming years, in line with international bodies’ forecasts. According to the Corona virus, accordingly, and after meeting the company’s forecasts for 2021, we are raising our forecasts for 2022, relative to the results of 2021, with a maximum growth of up to 81% in revenue, along with a significant increase in EBITDAR. We are continuing the business development of the company to open 32 more hotels owned and leased until the end of 2024, so that when they open, the company will operate about 43,000 rooms in Israel and abroad.