Israeli businessman David Fattal is holding advanced talks for the acquisition of 22 Holiday Inn hotels in Germany.
The deal is estimated at some €300 million (about $400 million) and will be funded by Fattal and financial partners.
The 22 hotels are in a franchise agreement with the global Holiday Inn chain and include a total of 4,000 rooms. The hotels are located in Munich, Cologne, Dusseldorf and other cities, and are owned by one franchise group which is negotiating with Fattal.
According to reports, the talks have been held for quite a long time and have yet to mature into an agreement.
Fattal runs some 35 hotels in Europe under the Leonardo brand name (27 in Germany, five in Belgium, two in Switzerland, one in Austria and one in Hungary), as well as some 30 hotels in Israel,
some under the same brand name and others under different brands such as Meridien.
Upon the acquisition of the 22 hotels, which will be given the Leonardo brand name, the Fattal-owned chain will be the second largest in Germany after Accor, with 49 hotels in the country.
Fattal launched his European hotel management activity in 2006 as part of the group's expansion strategy. Several years later, he set up the Fattal Fund with partners such as Migdal, Delek Real Estate and Menorah Mivtachim, and purchased some 20 hotels in different cities in Germany. The additional hotels were bought later on.
Fattal was the person who established the Holiday Inn chain in Israel, which is owned by Africa Israel.