It’s heartening to see the steady increase in hotel transactions, especially deals that involve a portfolio. Fattal Hotel Group’s majority stake in 7Minds – which has three hotels open and four in development – is significant for several reasons.
Firstly, it speaks of Fattal’s confidence in the high-end boutique segment. The company will even reposition its flagship property Bachar House under the 7Minds offering, emphasising the value of a brand post-pandemic. Identifying value-add deals where underperforming assets can be enhanced for optimal ROI will likely spur investment in the initial stages of recovery.
Secondly, it broadens Fattal’s presence in the Israeli market. Tel Aviv-based 7Minds will join its Leonardo, NYX and Herods hotel brands, catering to a range of tastes and demographics. 7Minds is perhaps most closely aligned with NYX as both fall into the lifestyle segment, which again shows conviction in this type of product and a sign of future growth for urban lifestyle hotels.
Thirdly, 7Minds’ owners are provided with liquidity and are able to continue managing the brand. From an expansion point of view, the partnership grants 7Minds the opportunity to significantly increase its operations by adding Fattal’s own assets along with new hotels down the line. It’s a mutually beneficial deal and will support the growth of 7Minds even beyond Israel.
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