Fattal Hotels acquires leasehold of the Dilly for £66.5m

Fattal Hotels has acquired the leasehold of the Dilly in London’s Piccadilly for £66.5m amid plans to relaunch it under a new name.

The acquisition comes as Fattal Hotels accelerates expansion across “key European gateway cities”, with the group currently operating more than 320 hotels across in excess of 120 destinations worldwide.

Over the past four years, Fattal Hotels has raised roughly €1.5b (£1.3b) through European partnerships and acquired more than 60 hotels in the region, including its 11th London property, Hotel Saint in Aldgate.

The Dilly is currently undergoing a multi-million-pound refurbishment, due for completion in 2028.

Designer Suzanne Garuda is leading the project, which involves the transformation of its rooms, suites, dining areas and leisure facilities.

The hotel remains open to guests during this period but will relaunch with a new name and brand identity under Fattal Group’s Limited Edition hotels.

The ‘prestigious’ Fattal Limited Edition comprises 26 hotels across eight countries in Europe, the UK and Israel.

Guy Vardi and Yaniv Amzaleg of Fattal Hotel Group said: “The Dilly occupies a key strategic location in the heart of central London and remains one of the city’s most iconic hotel assets.

“This acquisition represents another important milestone in our global expansion strategy. We are grateful for the continued trust placed in us by the investors of Fattal Partnerships, as reflected in the successful completion of this complex transaction following lengthy negotiations.

“We look forward to continuing to invest in and operate hotels across 21 countries throughout Europe, creating long-term value for our partners and stakeholders.” 

The Dilly originally opened in 1908 as the Piccadilly hotel and for a time operated under Marriott as Le Méridien Piccadilly until 2020. It currently offers 283 bedrooms, including 28 suites, and Madhu’s of Mayfair, the Terrace and Downstairs at the Dilly.

Fattal Hotels is Israel’s largest hotel group, operating brands including the Leonardo and Nyx Hotels.

The transaction was supported by CBRE, who advised on the acquisition.