Fattal to open eight new hotels in Israel

Fattal Holdings (1989) (TASE: FTAL), one of the biggest hotel chains in Israel and Europe, will open eight new hotels in Israel over the next year at an overall investment of NIS 1.6 billion. The hotels will add more than 1,000 rooms to the chain in Jerusalem, Tel Aviv, Ramat Gan and Herzliya. At the same time the chain is moving forward with three more hotels in Jerusalem, Tel Aviv and Eilat with 540 rooms. Fattal also has plans to build new resort hotels at Zion Square in Jerusalem, along the railway park in Tel Aviv and by the Dead Sea and Sea of Galilee.

Fattal has 66 hotels in Israel (of which 45 are currently operating) and over 240 hotels in Europe with 53,000 rooms in 20 countries.

In addition to refurbishing, opening and building hotels, Fattal has acquired the exclusive hotel The Jaffa in Jaffa for an estimated NIS 450 million. The hotel, until now owned by Aby Rosen and Michael Fuchs, has 120 rooms, a spa, swimming pool and chef restaurant, and is considered one of Israel’s most luxurious hotels.

The hotels just opened by Fattal are Bazaar Hotel in Jaffa with 104 rooms, which opened in April, with an investment of NIS 90 million and the Nucha Hotel in downtown Jerusalem with 86 rooms, which opened last month, with an investment of NIS 150 million.

Hotels set to open are the Reception Hotel in Tel Aviv, at Dizengoff Square, with 75 rooms, which will open in September, with an investment of NIS 100 million. The Nordau Hotel in Tel Aviv, will also open in September. The 22-room veteran hotel has been renovated at a cost of NIS 65 million. The Yacht Hotel in Herzliya Marina, with 327 rooms, will open in March 2026, after an investment of NIS 500 million. The Palatin Hotel in Tel Aviv will open in April 2026 , after an investment of NIS 200 million, and the Leonardo Plaza City Tower in Ramat Gan will reopen in November 2025, after an investment of NIS 80 million.

Not only Fattal is expanding

Despite the security situation and the impact on incoming tourism, the hotel industry in Israel continues to grow. More than 1,000 new hotel rooms will be added in the near future, and developers are not hesitating to invest. The Israel Hotels Association says there are 55,000 hotel rooms in Israel, of which 3,000 are inactive due to the security situation, which has led to a major reduction in incoming tourism. However, over the past year, and contrary to all expectations, many developers have seen the potential. According to the Ministry of Tourism, since the start of 2025, more than 700 rooms have been opened, some in new hotels and some as additions to existing hotels.

Since the Covid pandemic and then since the outbreak of the war, the hotel industry has reported a clear trend: the large chains that have hotel operations abroad continue to build and expand, while small hotels are struggling to survive.

The Isrotel chain has also announced major expansion in Israel and abroad in the past year. In 2025, the Isrotel chain planned to open five new hotels in Israel and one hotel in Athens through its international sister chain ALUMA. It also plans to build seven hotels in Israel within five years. The chain currently operates 23 hotels in Israel and three hotels in Athens, and is expected to operate 28 hotels nationwide and over 5,175 rooms by the end of the year.

In contrast, Dan Hotels, which benefits from foreign tourism revenue, has been damaged during the war. For example, in a report to the Tel Aviv Stock Exchange (TASE) following the Iram operation, Dan reported a sharp decline in occupancy, cancellations, and lack of new bookings. The company closed about half of its hotels, put most of its employees on unpaid leave, and estimated that the negative impact would continue even after the operation ended.

Published by Globes, Israel business news – en.globes.co.il – on August 3, 2025.

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