David Fattal (PR)
The hotel industry has been suffering from a significant upheaval in the last two years. If 2019 was a record year for the industry, then in 2020, the peak of the Corona crisis, significant closures and disruptions in occupancy were imposed on the industry, which, as a matter of course, sent the industry to losses. 2021 was divided into the first quarter that continued the 2020 trend with closures, and the next three quarters after that exploded both in terms of occupancy and in terms of prices (translated into revenue).
The Fattal hotel chain is no different in the landscape of the industry in which it operates, but to understand the impact of the spring released in 2021, it is worth taking a look at the company’s revenues in the fourth quarter of the year, which touched NIS 1 billion.
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Fattal presented a forecast for 2022 with revenues in the range of NIS 4.8-5.5 billion – reflecting a growth of 58% -81% relative to revenues in 2021; The high continuum of the revenue forecast reflects growth beyond the level of revenue in 2019, pre-Corona crisis, which was a record year. EBITDAR in 2022 is expected to be in the range of NIS 1.5 – 1.7 billion.
During 2021, the company received a waiver of rent and a deferral of rent in the total amount of NIS 191 million. As of the end of the year, the Fattal Fund has cash totaling NIS 800 million.
Profit before rent, depreciation and other expenses (EBITDAR) in the fourth quarter of 2021 increased to NIS 341 million, compared with a loss of NIS 36 million in the corresponding quarter in 2020, mainly as a result of the said increase in revenues, implementation of efficiency measures and recognition of grants for Corona crisis, given to society mainly in Europe.
The loss attributed to shareholders in the fourth quarter of the year was significantly reduced to only NIS 19 million, compared with a loss of NIS 379 million in the corresponding quarter in 2020.
Shahar Aka, director and CFO of the company: “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 showed 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. Next to the corona virus.
“Accordingly, and after meeting the company’s forecasts for 2021, we are raising 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 as well. These days and looking at the long term, we continue In the business development of the company to open 32 more hotels owned and leased by the end of 2024, so that when they open, the company will operate about 43,000 rooms in Israel and abroad.
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