PPHE Hotel receives $1.24 billion takeover bid from Fattal Hotel

Fattal Hotel Group's £920.9 million ($1.24 billion) takeover approach for PPHE Hotel Group sent the London-listed hospitality real estate firm's shares surging 24%, as the Tel Aviv-based operator seeks to combine two European hotel portfolios spanning more than 250 properties.

"The offer represents fair value for the business and we intend to engage with our major shareholders to assess its deliverability," PPHE said in a statement Wednesday.

The £22-per-share proposal represents a 36.5% premium to PPHE's closing price on May 27 and roughly 47% above the stock's level on Nov. 13, before the company launched a strategic review with Rothschild & Co as financial adviser. PPHE, which operates the Park Plaza and art'otel brands and partners with Radisson Hotel Group, has a property portfolio valued at £2.2 billion. Fattal, which already held about 4% of PPHE, runs hotels under the Leonardo and NYX brands across Europe and the Middle East.

The deal would consolidate two mid-market European hotel operators at a time when travel demand across the continent remains strong, with the European hotel industry posting average revenue per available room growth of 6% in 2025, according to industry data. PPHE's 44% controlling shareholders, Eli Papouchado and Boris Ivesha, who supported the strategic review launched in November, will be critical to the offer's success. Fattal has been granted an exemption from the usual 28-day deadline under the UK Takeover Code and is in talks with PPHE's board to announce a firm offer within four weeks.

PPHE has formed an independent offer committee excluding Roni Hirsch, the representative director of 29% shareholder Euro Plaza Holdings, to evaluate the bid. The committee's formation addresses potential conflicts of interest given Hirsch's dual role, a standard practice in UK takeover proceedings.

The offer structure remains flexible. Fattal reserves the right to vary the form or value of its proposal, including introducing securities or reducing the £22-per-share price under certain conditions, according to PPHE's disclosure. This flexibility suggests Fattal may seek to structure the deal partly in stock to preserve cash, a common approach in cross-border hospitality transactions.

A successful acquisition would mark one of the largest European hotel deals in recent years, combining Fattal's portfolio of more than 200 hotels with PPHE's 47 properties across Europe. PPHE's partnership with Radisson Hotel Group could face changes under new ownership, though no details have been disclosed. The last major European hotel consolidation of this scale was Accor's acquisition of Mantra Group in 2018, valued at about A$1.2 billion.

PPHE shares traded at 2,006.48 pence on Thursday morning in London, giving the company a market capitalization of about £840.7 million, still below the implied value of Fattal's offer, suggesting some investors remain cautious about the deal's completion. Any competing bids from other hospitality groups could emerge during the four-week negotiation period, though no rival approaches have been disclosed.

This article is for informational purposes only and does not constitute investment advice.