Fattal buys 72.5% stake in boutique hotel chain 7Minds
Israeli hotel chain Fattal Holdings (1998) Ltd. is deepening its involvement in the boutique hotel sector by acquiring a 72.5% stake in Israeli chain 7Minds, which operates hotels in Tel Aviv. 7Minds will become one of the Fattal chain's brands alongside Leonardo, NYX, Herods and others. 7Minds is owned by Oren Pascal and Ben Braverman, Trend reports with reference to Globes.
7Minds hotels include Bachar House, opened in 2019 in a preserved building at the corner of Nahlat Binyamin and Lilienblum Streets in Tel Aviv. Other 7Minds hotels include: the Nordoy, a 22-room hotel in a preserved building in Nahlat Binyamin Street; Sam&Blondi in Schenkin Street, which has 45 rooms in a preserved building and the CUCU Hotel with 33 rooms at Dizengoff Square. Four more hotels are under construction including one at Dizengoff Square acquired by Fattal from the Kabbalah Center.
Pascal and Braveman will retain a 27.5% stake in 7Minds and continue to manage the brand. This will be the first brand that Fattal does not fully own. No financial details about the deal were disclosed which Fattal notified the TASE was immaterial and does not have to be reported.
Pascal told "Globes" that the connection was made between 7Minds and Fattal before the Covid crisis in July 2019. 7Minds had planned to expand to Europe but through their talks with Fattal realized the untapped potential that exists in urban boutique hotels in Israel and the advantages of a partnership with them.
Like all hotels in Tel Aviv, which rely on foreign tourism, Covid has hit 7Minds hard with occupancy down to 30%-40%. Pascal said, "We have created solutions adapted to the situation with two hotels moving to a format of leasing rooms on a monthly basis. Nordoy and Bachar are today open for guests while the others are for long-term rental."
7Minds rooms will be offered on Fattal's website for bookings with benefits for Fattal club members.
Founded in 1999 by David Fattal, the chain has 42,000 rooms in 223 hotels in 19 countries including Germany, the UK, and Italy. The chain has 38 hotels in Israel.
Fattal has been hit hard by Covid-19. Revenue in the first quarter of 2021 was NIS 195 million compared with NIS 839 million in the first quarter of 2020. The company sees revenue of between NIS 3.1 billion and NIS 3.6 billion in 2021, dependent on the pace of recovery of the tourist industries in the countries in which it operates.