Menora and Harel booklets for Fattal - will purchase hotels in Europe

According to forecasts, the tourism industry is expected to fully recover in 2024, but until then there will be factors in the industry that will not be able to survive.

This special situation provides good investment opportunities, such as that of the insurance giants and the hotel company.

Leumi Partners will also invest in a partnership that will purchase hotels in Europe

Roast Greenberg

18/04/2022

Monday, 18 April 2022, 08:06 Updated: 08:16

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On the way to a bundle of hotel vacation and insurance?

Menora and Harel insurance companies have pledged to invest 100 million euros each in a partnership to purchase and build hotels in Europe, which they will set up together with the Fattal hotel chain, which will invest the same amount.

Alongside them, Leumi Partners will also invest a sum of 15 million euros, and the total amount of investment liabilities that will be provided for the benefit of the partnership is 315 million euros.

Fattal reported yesterday (Sunday) that the amount will constitute the equity for the purchase of hotels in the total amount of up to about 1 billion euros, which will be managed by it.

The tourism industry began to recover at the end of 2021, and expects a full recovery around 2024. However, not all workers in the industry will be able to recover, and the major international players are trying to take advantage of this in favor of finding buying opportunities to increase their activity.

To this end, some of them are working to raise funds for the realization of the opportunities that will arise.

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David Fattal, joins strong investment partners in hotels in Europe (Photo: Creative Commons)

It should be noted that Fattal's own financial results do not yet indicate a full recovery from the corona blow received by the company in early 2020.

Its revenues for 2021 were about 43% lower than its total sales in 2019 - the peak year Israel experienced in tourism, and the operating profit for the fiscal year. The latter was about 34.5% lower than the peak period.

The company's share price, however, has soared by 531% since the low it reached in mid-March 2020, and today the company is traded on the Tel Aviv Stock Exchange worth about NIS 7.5 billion, compared to about NIS 1.1 billion in mid-March 2020. For the trust of investors in the company, and in its recovery.

The institutional investment mentioned above, however, does not necessarily indicate their confidence in the company's stock, and some direct it to their need for the financial investments under their management in general, and in the direction of income-producing assets in particular, which will benefit their colleagues.

For some time now, insurance companies and investment houses have tended to increase the percentage of the non-negotiable portion of their investment portfolio, making the black swans more tradable assets, hitting the capital markets (Corona, Russia-Ukraine war) in the last two years and shaking stock charts.

In addition, the state's designated bond reform, which will stop the issuance of designated bonds at a rate of 30% of pension fund money in favor of investing in the capital market, puts additional money into the circle of investments that insurance companies will require.

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• Fatal

• lamp

• Harel

• Tourism

• Insurance