Published On: Thu, Dec 14th, 2017

Israeli Fattal Hotels Group and Swedish Pandox to Buy Jurys Inn Group For €907 Million

This is the second deal for Fattal Hotels Group and Pandox. In 2015, the two companies sell and rent 18 hotels in Germany.

 

Israeli Fattal Hotels Group together with Swedish hotel group Pandox have agreed to acquire the Irish Jurys Inn hotel group and brand from US investment firm Lone Star for £800 million (€907 million) on a debt-free basis.

This is the second deal for Fattal and Pandox. In 2015, the two companies sell and rent 18 hotels in Germany.

The current deal is expected to close within two weeks, before the end of 2017.

The portfolio of 36 hotels includes the entire Jurys Inn portfolio. It includes one hotel at London’s Heathrow airport, trading as a Hilton Garden Inn and four Jurys Inn hotels on the island of Ireland; Jurys Inn Dublin Christchurch, Jurys Inn Cork, Jurys Inn Belfast, and Jurys Inn Galway.

Pandox will retain ownership of 20 hotels within the portfolio, along with the property and operations of the Hilton Garden Inn London Heathrow hotel.

Fattal will acquire via its wholly owned subsidiary Leonardo Hotels Europe, the remaining 16 leasehold properties, which are on long-term leases.

Leonardo will also acquire the operating platform for all 36 hotels and the Jurys Inn brand, and operate the management contract for Jurys Inn Prague

Leonardo will retain the Jurys Inn brand and existing company structures and it will operate the Jurys Inn business as a separate division.

After the deal, which was signed for a period of 25-35 years, Fattal Group will manage approximately 162 hotels with about 31,000 rooms.

Jurys Inn was established in 1839 in Ireland. The chain manages 4-star hotels, with an emphasis on the business sector.

Pandox expects the portfolio to contribute about €45.3 million in operating income in 2018.

According to data provided by Fattal, occupancy rates in hotels reach 80%; Network revenues in 2017 are expected to amount to £225 million, with EBITDA of £ 60 million, or £ 25 million after rent, the network’s annual growth rate (CAGR) is 15.5% and the daily income from a room is £ 75.

The Hotels which Fattal will mange has recently been renovated with an investment of £100 million, as part of Jurys Inn’s preparations for the issue, but the IPO was not implemented, and the hotels were sold now to Pandox.

According to The Marker, the Fattal group is held by David Fattal (72%), Migdal Insurance (18.5%) and Fattal Hadasa Fattal (9.5%). The chain’s hotels are located in Germany, Great Britain, Israel, Spain, Belgium, Ireland, Italy, Cyprus, the Czech Republic, the Netherlands, Switzerland, Poland, Hungary and Austria.

Fattal noted that with the acquisition of hotel management in Britain and Ireland, the British island is the second largest concentration of hotels in the chain (42), after Germany (56).

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