Fattal Hotel Group has made its first move into the US hotel market with the acquisition of The Blakely Hotel in Midtown Manhattan for a reported $38.5 million.
The deal gives the owner-operator a foothold in one of the world's most competitive hotel markets but also raises a broader question about hotel real estate: can a company built around owning and operating hotels succeed in a US industry increasingly dominated by the asset-light brand cos?
The likes of Hilton, Wyndham, Marriott and even Hyatt have spent the last few decades switching to a franchise model where they collect fees rather than investing in bricks and mortar.
Earlier this year Hospitality Investor broke the news that Fattal was close to buying its first hotel in New York when Ronen Nissenbaum, Fattal’s CEO of Western Europe, spoke at NYU IHIF. He also indicated this would be the start of a greater expansion in the country.
“Typically, when you look at our company, once you pluck down one hotel, it quickly mushrooms into 10 or 20 or 30 hotels, and that was the idea, strategically… in a significant market with a significant, a good-sized hotel, to allow us to move forward and look past the headwinds,” Nissenbaum said.
Fattal owns and operates some 329 hotels in 22 countries. Following completion of the acquisition, Fattal Hotel Group plans to undertake a comprehensive renovation and repositioning programme. The hotel will remain closed during redevelopment and is expected to reopen in mid-2027 under one of the group’s existing brands.
The Blakely has previously been associated with an ownership group that included BD Hotels and its principal Richard Born, one of the best-known figures in New York's boutique hotel sector.
David Fattal, Founder of The Fattal Group said: “Entering the US market is a landmark moment for Fattal Hotel Group, and a major strategic step in our continued international growth. New York is one of the world’s most important hospitality markets and the ideal location for our first US property.
“Over the years, we have built a strong presence across Europe’s leading gateway cities and established a diverse portfolio of hospitality brands that resonate with both business and leisure travellers. Expanding into New York represents the next chapter in our evolution into a global hotel company.