Israel's hotel industry has faced several challenging years, but Fattal Hotels is pushing ahead with its expansion plans. The chain has announced that it intends to open at least 12 new hotels across Israel by 2030. All are already at various stages of development and are expected to add more than 2,000 rooms to its portfolio.
The planned projects include a new hotel in Eilat, the Avra Hotel, a NYX hotel with a water park at the Dead Sea, a NYX hotel in Jerusalem and the Palatin Hotel in Tel Aviv. At the same time, the chain said it has invested hundreds of millions of shekels in recent years to renovate and upgrade existing properties. These include the Leonardo Plaza City Tower, Leonardo Plaza Haifa, Leonardo Plaza Kinneret (formerly Leonardo Plaza Tiberias), Leonardo Plaza Dead Sea, Leonardo Plaza Jerusalem, Club Dead Sea, Herods Boutique Eilat, Leonardo Negev and Leonardo Plaza Ashdod.
"Even during the challenging years the tourism industry has experienced, we have not put our development plans on hold," said Nadav Fattal, one of the chain's two co-CEOs. He said the investments were driven "out of a belief in the future of Israeli tourism."
New luxury and urban boutique collections
In recent years, Fattal has also focused on developing two hotel collections alongside its established brands, including Leonardo, U, Herods and NYX. The two collections cater to different vacation preferences, with one emphasizing the hotel experience itself and the other focusing on the surrounding city and its local character.
The first, Fattal Limited Edition, brings together the chain's luxury hotels, where the property itself is a central part of the guest experience. The hotels feature chef-led restaurants, bars and spa facilities, as well as art collections curated specifically for each property. In Israel, the collection includes THE YACHT in Herzliya, The Jaffa, located in a historic 19th-century building in Jaffa, Canaan Hotel in Safed and Botanica Hotel in Haifa's German Colony, at the foot of the Bahai Gardens. The Palatin Hotel in Tel Aviv is expected to join the collection in the future and will also house a new restaurant by the Kisu Group.
The second collection, Fattal Colors, comprises urban boutique hotels situated in the heart of local entertainment and cultural districts. Each property reflects the character of its surrounding neighborhood. The collection includes the Bazaar Hotel in Jaffa, Nucha near Mamilla in Jerusalem, and Bachar House on Lilienblum Street, Nordoy in Nachalat Binyamin, Sam & Blondi on Sheinkin Street, Rothschild 22 and Reception on Dizengoff Street in Tel Aviv. Rather than offering breakfast in a traditional hotel dining room, these properties serve it in their on-site restaurants, which are also open to local diners. The collection is expected to grow in the coming years with the addition of the Lilienblum Hotel in Tel Aviv, as well as Beit Alliance and The Bank in Jerusalem.
Tailored experiences for every traveler
"The same guest may be looking for a completely different kind of vacation, even at the same destination," explained Maya Shalev, the chain's VP of Marketing and Sales. "Sometimes, they want to disconnect from the outside world, while at other times, they want to experience the city, its culture and its local cuisine." Alongside its hotel collections, Fattal is broadening its range of guest activities to include performances and lectures, wine tastings, retreats, yoga sessions, tours and workshops.
Growing presence across european markets
David Fattal, the group's founder and controlling shareholder, also discussed the chain's growing presence across Europe. According to him, the group operates in 17 of Europe's 20 most popular tourist cities, with 87 hotels across those destinations. Founded in 1998, Fattal Hotels currently operates 332 hotels in 22 countries, offering more than 59,000 rooms, according to company figures. In Israel, the chain has approximately 64 hotels, of which 49 are operational, while the rest remain under development.