Not only in Eilat: Herods brand expanding

Fattal hotel chain owner plans to renovate Leonardo Plaza Tel Aviv, which will close for three months; when it reopens, prices will rise 15%. Future renovations scheduled for Dead Sea hotel; new hotel in Jerusalem also planned

Yasmine Gil, Calcalist|Published: 10.22.10 , 07:58

Herods, a famous hotel establishment in Eilat built a decade ago by architect Yoav Igra, who controls 50% of it, is expanding, Calcalist reported Wednesday.

According to Igra, the chain has plans for new hotels in Tel Aviv, Jerusalem and the Dead Sea. Herod's, also controlled by the owner of the Fattal hotel chain, David Fattal, is the chain's prestigious brand.

“In polls that we conducted we found that Herods is considered the most prestigious hotel in Israel,” Fattal said. When asked about other prestigious hotels in the country, Fattal said, “King David, for example, isn't considered a vacation hotel, but rather an inaccessible hotel. The Dan brand is less prestigious than Herods, though of course as a company Dan has brand value. But the public always considers Herod's the most prestigious.”

The first phase of the plan is to upgrade the Leonardo Plaza Hotel on Hayarkon Street in Tel Aviv. The hotel will close in December for three months for renovations in its rooms, public spaces and exterior, for a total cost of NIS 60 million (about $16.5 million). The hotel's design concept, overseen by Igra, is “Old Tel Aviv,” with stylistic influences from 1930s and early 1940s Tel Aviv.

“We toured Tel Aviv hotel rooms,” Fattal says, “and every room is similar to the next. Our goal is to be different. The hotel will be closed for three months. We have to open it in early March 2011 to be ready for Passover, and therefore we have no other option. As for the employees during the renovations, some will continue doing their work and some will go on unpaid leave, everything is coordinated.” Addressing the losses expected to be incurred from closing the hotel, Fattal said only that, “This is a very big loss, a few million, but because it is winter it is the lesser of the evils.”

The renovated hotel will feature 330 rooms, include a 180-square-meter (1,937-square-foot) suite featuring a dry sauna, private gym and open bar. “Tel Aviv has never seen a suite like it,” Fattal said. Once the hotel is reopened, room rates are expected to go up 15%.

'Most prestigious hotel in capital'

As for Jerusalem, an entirely new hotel will be built adjacent to the Leonardo Plaza Hotel on King George Street. “I hope that we'll get a building permit by the end of 2011,” Fattal said. Some $90-100 million will be invested in the construction, averaging roughly $300,000-320,000 per room. Some 70% of the investment will be financed through a loan, and the rest will be the hotel chain's investment. “According to our estimates, it will be the most prestigious hotel in Jerusalem,” Fattal said. The hotel will offer 300 rooms and will feature a bar, restaurant, stores and a 2,000-square-meter (21,530-squre-foot) convention hall. The top three floors will follow the same concept as the Vitalis Spa, in Eilat.

In addition, there are plans to upgrade the Leonardo Plaza Hotel, formerly the Sheraton Plaza, at the Dead Sea. “This is a strategic decision that Rafi and I made,” Fattal said, referring to the new CEO of the Fattal chain, Rafi Sadeh. “We decided to upgrade our hotel at the Deal Sea and bring it up to the highest standards in the region.” The hotel will feature 227 rooms; it is unclear when renovations will commence.

Addressing the possibility of expanding the Herod's brand abroad, where Fattal operates a chain of 34 hotels under the Leonardo banner, Fattal said, “This is indeed a possibility. I think that Herod's Eilat is a name with international acclaim; tourists love it and are impressed. Currently our hotels in Europe have 3-4 stars, and the Herod's brand will allow us to join ranks with hotels at a different level, even internationally.”

The Fattal chain operates 29 hotels throughout Israel, in Eilat, Haifa, the Dead Sea, Beersheba and Tel Aviv. The hotel brands are: Leonardo, Meridien, Magic, Club Med, Herods and Golden Tulip.