Fattal Properties Europe acquired two development sites—one with a hotel and the other with a residential building—in Edinburgh, Scotland for £52 million.
The subsidiary of Israeli hotel company Fattal Holdings acquired all the rights to the 186-room hotel. The hotel is leased to Fattal Holdings subsidiary Jurys Inn.
Fattal plans to develop an additional wing to the hotel on the first lot, investing £14 million to add 101 guestrooms to the existing building. The Jurys Inn will have 287 guestrooms once the renovation is complete.
The second lot will get a new-build 131-room Nyx hotel along with 31 residential units. Each project will cost £17 million and £1 million, respectively, to construct.
Fattal expects the renovation and construction work to begin in the first half of 2019 and be complete by first-quarter 2021. The company will use a bank loan to pay off 60 percent of the acquisition, expansion, renovation and construction costs, while its own resources will cover the remaining 40 percent.
This recent acquisition follows the completion of another hotel sale on Aug. 16. Fattal purchased the share capital of a Dutch company with ownership management and leasing rights to 13 Apollo hotels in a deal of approximately £137,000.
The newly acquired hotels have more than 1,900 guestrooms, expanding Fattal's inventory of Dutch hotels to 14 with 2,041 guestrooms. The group's pipeline for the market includes an additional hotel in Amsterdam with 490 guestrooms slated to be complete in 2019.
"When the deal is completed, Fattal Holdings will have 11 hotels in Scotland, including four in Edinburgh, the second most important tourist site in the UK, and a total of 43 hotels in the UK. The deal in the Netherlands has made the chain a significant player in the country with 15 hotels, including the largest hotel in Amsterdam," David Fattal, founder of Fattal Holdings, told Globes.
Fattal has 146 hotels operating across Europe. The company wholly or partly owns a total of 52 hotels, while it rents 89 hotels and manages five.