Israeli entrepreneurs in the investment wave in Rome and London

Israeli investors are cooperating with banks and insurance companies to buy properties at low prices.

 Illustrative image of investing. (photo credit: MoneyFindings)
Illustrative image of investing.
(photo credit: MoneyFindings)

Fatal Hotels, owned by David Fatal, is expanding its operations in London. It signed an agreement with institutional entities to purchase the DILY hotel in London for 90 million pounds. Also, 85 million pounds will be invested in renovating the historic hotel. The venture intends to finance the transaction from independent sources and take financing from Bank Hapoalim and Bank Mizrahi Tefahot.

CEO Ronen Nissenbaum stated that the DILY hotel will be a significant and prestigious addition to the Fattal Group's property portfolio in the British Isles, which will include, upon completion of this deal, 11,000 rooms in 54 hotels.

White City Buildings, a real estate investment firm, is entering the Rome hotel market with an investment of NIS 1.7 billion, in partnership with Phoenix Insurance and leading hotel companies like Isrotel and Fatal. The company will purchase and renovate six hotels in Rome that will be operated by international management companies.

Also, Fattal has drafted contracts to buy four additional hotels, including a building with a constructed area of approximately 24,000 square meters near the Spanish Steps and the Trevi Fountain in Rome, with the cost totalling 160 million euros. 

The total volume of transactions is about half a billion euros. Among the hotels that will be bought is the Savoy Rome Hotel located in Via Veneto, in front of the American Embassy. The companies intend to invest an additional amount of about 15 million euros in renovations and turn it into a leading luxury hotel.

 THE ISROTEL Dead Sea Hotel (credit: ISROTEL) THE ISROTEL Dead Sea Hotel (credit: ISROTEL)

The VIA IN ARCIONE office building was bought, as well, in partnership with the Leonardo company from the Fatal network. The building will be converted into an apartment hotel in a deal worth 13 million euros. An additional 7 million euros is slated to convert it into an apartment hotel.

Itzik Ben Shoham, chairman and owner stated that there's complexity in the realization of real estate transactions in Rome, since these buildings are 200-400 years old and are protected by stringent preservation laws. The investments were complex and closing them required planning and understanding the market and its potential.

Isrotel buys Rome's Savoy

At the same time, the Isrotel hotel chain also reported the purchase of the Savoy in Rome for 62 million euros. The hotel will open in 18 months. The agreement was signed through a subsidiary that will hold 50% of the property rights.

CEO Lior Raviv stated that the purchase of the hotel in Rome is a significant step in the implementation of the company's strategic plan to promote hotel development outside of Israel. The company is seeking more business opportunities in strategic locations with distinct tourist potential.

Omer Levy, the chair of the board of the Samelet car importer, announced a second expansion in Europe and the company's entry into Greece. This is the second country where the company will operate in the European market, after success in Romania.

Samelet markets in Romania the brands Jeep, Fiat, Alfa Romeo and Abarth from the global concern Stellantis. which until now marketed in Romania, and Stellanis announced the sale of its distribution company to Samelet including all brands that will be marketed in Greece.