Fattal Group – the owner of the Leonardo Hotels brand - has bought the Dilly Hotel in London for an undisclosed sum from Archer Hotel Capital.
Subsidiary Leonardo Hotels UK & Ireland has pledged to invest £90 million for an extensive refurbishment programme
Opened in 1908, the Dilly Hotel is in a central London location between Piccadilly and Regent Street with more than 280 rooms, indoor swimming pool, fitness and treatment rooms, and squash courts, plus seven meeting rooms and event spaces.
Le Meridien Piccadilly as it was then known was bought by Host Hotels & Resorts in 2010 for £64 million. In 2019 Dutch pension fund APG Group and Singapore's sovereign wealth fund GIC formed Archer Hotel Capital and acquired Host Hotels’ interest in the property.
Leonardo Hotels operate 52 hotels across the UK and Ireland. It is part of Fattal Hotels, which owns and operates over 200 hotels in over 100 destinations.
The Dilly will join the group’s collection of hotels in central London, which include Leonardo Royal Hotels at London City, Tower Bridge, and St Paul’s; and the NYX Hotel London Holborn.
In total, so far, Leonardo Hotels UK and Ireland has seen over 2,530 bedrooms refurbished across the group and has had more than 1,450 rooms added through new developments and acquisitions – including Leonardo hotels in Manchester, Bristol Glassfields, Chester, and new NYX Hotels opening in Dublin and Edinburgh. The development pipeline is being supported by the rebranding of the Jurys Inn portfolio to Leonardo Hotels, creating one global brand.
In Europe it has over 150 hotels across Europe in 86 cities and 14 countries. Most recently, Fattal Group acquired six hotels in Spain for over €165 million, with plans to invest €20 million additional capital across the properties, as well as to enhance the guest experience.
In addition, Leonardo Hotels Central Europe recently acquired nine leading hotels in Austria. Located in Vienna, Salzburg and Linz, the new hotels join the groups existing Leonardo Vienna hotel in the city's 6th district – positioning the Berlin-based hotel group as one of the biggest Austrian hotel operators, with 10 hotels and over 1,400 rooms. The group has ambitious plans to continue expanding its presence across key locations in Austria, focusing primarily on leading business and leisure trip destinations.
What they said
David Fattal, CEO and owner of the Fattal Hotel Group said: “We are delighted to add the Dilly, which is a stunning, high-profile hotel with a rich history dating back to the 1900’s, to our expanding group. We believe our portfolio, our strategy and the proven capabilities of our people puts our group in a unique position to leverage and capitalise on the emerging opportunities we see across the UK hotel sector.
“Our vision is to create one of Europe’s best performing hotel groups, where we nurture our talent to be the best, and create exceptional customer experiences.”
Ronen Nissenbaum, CEO of Fattal Hotels in the UK, Ireland, Netherlands, Belgium, Spain, and Portugal, said: “The iconic Dilly is an excellent acquisition for the group, and reflects the ongoing success of our hotels, and very much consistent with our ambitious growth strategy. We look forward to working closely with the experienced Dilly team over the coming weeks and months to drive performance and continue delivering exceptional experiences for guests as we prepare for the substantial investment and repositioning of the property in the heart of the great city of London”