Fattal enters New York market, acquires Manhattan hotel
The company controlled by David Fattal is acquiring the 117-room Blakely Hotel for $38.5 million and will invest an additional $13 million in renovations; this marks the Israeli hotel chain's first expansion into North America, following a prior focus on Europe and Israel.
Fattal is entering the New York market for the first time, acquiring a hotel in Midtown Manhattan for $38.5 million (approximately NIS 117 million). This marks the first North American move for the Israeli hotel company controlled by David Fattal, following a prior focus on operations in Europe (including the UK and Ireland, as well as Greece and Cyprus, which it classifies as separate operating segments) and Israel.
The Blakely Hotel is located in a 17-story building near Central Park and Times Square and features 117 rooms. Fattal plans to close the hotel for a renovation period of approximately one year, with estimated costs of $13 million.
As of the end of March, Fattal operated 276 hotels (with three additional hotels opening by the end of May), including 154 in Central and Western Europe (primarily Germany), 61 in the UK and Ireland, and 13 in Greece and Cyprus, alongside 48 hotels in Israel.
Last week, the company announced a third partnership established with Israeli institutional investors to acquire hotels; it completed a €518 million (NIS 1.8 billion) capital raise for this purpose, comprising a €200 million investment commitment from the company itself and €318 million from a group of institutional investors, most notably Harel, Menora Mivtachim, Mor, and Phoenix.
Like the two previous partnerships the company established with institutional investors in 2022 and 2024, the third partnership is intended to operate in Europe; however, unlike the earlier two, it is authorized to acquire assets in the US as well. Consequently, its launch signaled Fattal’s intent to begin operating in the American market. In practice, the acquisition of the Blakely Hotel was carried out by the company itself rather than through the partnership.
Fattal’s move to enter the New York market follows a similar step taken last year by the Dan Hotels chain, which entered into a deal in October to acquire a hotel in Manhattan’s SoHo neighborhood, thereby expanding its operations into the US market for the first time.
