Fattal Hotel Group has entered the U.S. hospitality market with the acquisition of The Blakely Hotel in Midtown Manhattan, marking the European hotel operator’s first hotel investment in the United States and its first move into North America. Terms and conditions were not disclosed.
Nissenbaum, the CEO of Western Europe at Israel-based Fattal Hotels, told attendees at NYU earlier this summer that his company was working on a deal for a property in New York City that hadn't been announced yet. Fattal has been circling North American development for years.
The company, which owns and operates 329 hotels in 22 countries under brands including Leonardo Hotels, acquired the 117-room hotel on West 55th Street between Sixth and Seventh avenues. The pre-war property includes 42 suites and sits within walking distance of Central Park, Times Square and Fifth Avenue. Fattal plans a comprehensive renovation and repositioning of the asset, which will remain closed during redevelopment before reopening in mid-2027 under one of the group’s existing brands.
At NYU earlier this summer during a panel, Nissenbaum pointed to New York’s global visibility, year-round demand drivers and long-term investment fundamentals as key reasons for selecting the city for their first North American deal. Picking the right first city is important, Nissenbaum said, because Fattal doesn’t plan on just having a solo presence on the continent.
“Typically, when you look at our company, once you pluck down one hotel, it quickly mushrooms into 10 or 20 or 30 hotels, and that was the idea, strategically… in a significant market with a significant, a good-sized hotel, to allow us to move forward and look past the headwinds,” he said.
Entering the U.S. market is a landmark moment for Fattal Hotel Group and a major strategic step in our continued international growth, Founder David Fattal said. “New York is one of the world’s most important hospitality markets and the ideal location for our first U.S. property,” he continued.
Fattal said it views the acquisition as the next step in its evolution from a European operator into a global hotel company. The group has built a portfolio across major European gateway cities and serves both business and leisure travelers through multiple brands.
“It’s important that our first U.S. hotel is right in the center of one of the world’s greatest cities,” Nissenbaum said. “This hotel benefits from an exceptional Midtown Manhattan location in one of the world’s most dynamic destinations, and we see significant long-term potential in the property.”