Company Fattal Holdings Reported this morning that its new hotel venture in Europe (a partnership established with the institutional bodies for the purchase of hotels) has signed a binding agreement with the KKR investment fund to purchase indirectly or directly the full issued share capital of 4 Spanish companies holding 4 hotels and 2 hotels. Apartments from the ALUA chain in Spain for 165.5 million euros. With the purchase of the hotels, Fattal will have 16 hotels in the country.
The hotels now purchased are rated 4 stars, have 1,119 rooms and are located on the beaches of Ibiza and Mallorca. The partnership will finance the transaction from its own sources, in addition to a loan of approximately € 95 million that the partnership intends to receive from a banking entity. The hotels join two hotels purchased by the partnership in Malaga and Palma.
Fattal notes that in recent years about 14 million euros have been invested in the renovation of the hotels and the company intends to invest an additional 20 million euros in the renovation of the hotels and the improvement of visibility and comfort in them.
Following the acquisition, Fattal is expected to brand the hotels in the group’s hotel brands such as Leonardo, Leonardo Royal and Knicks.
Fatal’s partners in charge of managing the partnership, Guy Vardi and Yaniv Amzaleg, noted that “the current deal again reflects Fattal’s ability to identify opportunities and execute significant volumes of transactions with top international entities and partners in transactions that create diversity and value for venture investors.”