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Fattal Hotel Group has completed its purchase of the leasehold interest in The Dilly for £66.5 million after operating the property under a sub-lease secured in 2022. The Israeli hospitality company finalised the transaction following extended negotiations, according to multiple industry reports including one published by Boutique Hotellier. The acquisition advances the group’s strategy for strengthening its footprint in prime European gateway cities. Reports from CoStar and Calcalist placed the overall commitment at roughly £220 million once associated costs are included.
The deal encompasses a £170 million syndicated financing facility arranged by Bank Hapoalim to support both the acquisition and upcoming works. Fattal Hotel Group anticipates investing an additional £60 million to refurbish and upgrade the 283-key Grade II-listed building. According to a statement from the company, the programme will address guest rooms, dining venues and leisure facilities while the hotel remains open throughout phased delivery. Boutique Hotellier reported that interior designer Suzanne Garuda is overseeing the project, which will conclude with a relaunch in 2028.
The Dilly originally opened in 1908 as the Piccadilly Hotel and occupies a prominent spot at 21 Piccadilly in central London. The property provides multiple dining options such as Madhu’s of Mayfair together with a swimming pool, squash courts and extensive event spaces. Its Edwardian architecture has drawn notable guests for more than a century, a detail highlighted in the hotel’s official history. Fattal Hotel Group has operated the asset since 2022 and now moves to integrate it more fully into its premium Limited Edition collection under a new name and identity.
Guy Vardi and Yaniv Amzaleg of Fattal Hotel Group described the purchase as a key milestone. “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,” they stated according to Boutique Hotellier. The executives pointed to investor confidence evidenced by the first closing of approximately €0.5 billion for the group’s latest partnership vehicle. They added that Fattal intends to keep expanding its operations across 21 countries in Europe.
Fattal Hotel Group was founded in 1998 by David Fattal, who began his career as a bellboy before building one of Israel’s largest hospitality businesses. The company listed on the Tel Aviv Stock Exchange in 2018 and now ranks among Europe’s major hotel operators with brands that include Leonardo Hotels and NYX Hotels. Its portfolio spans major cities such as Paris, Berlin, Rome and Madrid as well as a recent entry into the United States market through the acquisition of The Blakely Hotel in New York. Corporate background material distributed by the group underscores its focus on creating long-term value for partners through selective acquisitions and operational improvements.
Baker McKenzie advised funds managed by Fattal Hotel Group on the legal aspects of the acquisition, financing and refurbishment programme. The firm’s team, which has supported the hotelier on prior UK and European matters, included partners specialising in leveraged finance, real estate and tax. CBRE provided advisory support on the transaction itself, according to reports in the hospitality press. The completion marks one of Fattal’s larger single-asset investments in the London market to date.
