Fattal Holdings sold Munich's Leonardo Royal Hotel in Germany for $175 million, €25 million more than the hotel's value, according to a report from Globes.
Fattal signed a 30-year lease on the 424-room hotel next to the Olympic park. Depending on which is higher, the company will pay €7.2 million a year in management fees or 32 percent of the hotel's revenue turnover.
Shareholders' equity at Fattal will jump €11 million upon completion of the hotel sale. However, the company's EBITDA will drop €7.2 million each year.
Now, the company's portfolio holds 131 hotels. Fattal completely or partially owns 48 of these properties, rents 79 of them and manages four. They span Germany, the UK, Spain, Belgium, Italy, Cyprus, the Czech Republic, the Netherlands, Switzerland, Poland, Hungary and Austria. Germany has the largest number of the company's hotels, totaling 61 across the country.
"We'll continue to operate according to our strategic plan and strengthening our grip in Israel and Europe in order to expand the company to new instruments," David Fattal, founder of Fattal Hotels, told Globes.
Fattal Holdings recently boosted its presence in Europe through its acquisition of a Dutch holding company in April 2018, according to Globes. With this purchase, Fattal took over ownership of 12 hotels with 1,938 guestrooms in the Netherlands. The group already leases a hotel in Amsterdam with 103 guestrooms. It is also developing a 490-room hotel in the capital city, which is scheduled to open in 2019.
The company's latest opening in Europe was the Nyx Hotel in Madrid, Spain in the same month, according to Conference & Incentive Travel. The 180-room Nyx Hotel Madrid is Fattal's third hotel operating under the Nyx brand. The next Nyx hotel is set to open in Bilbao, Spain in early 2019.