Dive Brief:
- European hospitality operator Fattal Hotel Group has acquired The Blakely Hotel in Midtown Manhattan, marking its first hotel investment in the U.S., according to a Wednesday news release. The terms of the transaction were undisclosed, and Fattal did not respond to a Hotel Dive request for comment by the time of publication.
- The 117-key boutique hotel, situated in a pre-war structure, features room sizes that are “notably larger than the Manhattan average,” per the release. The operator is planning a full renovation and repositioning of The Blakely, with the hotel expected to reopen in mid-2027 under one of Fattal’s existing brands.
- Fattal adds The Blakely to a portfolio of 329 hotels in 22 countries across Europe and the Middle East. The company’s expansion into North America is “a natural progression,” as it sees long-term growth opportunities in both New York City and the U.S. more broadly, Ronen Nissenbaum, Fattal CEO of Western Europe, said during a session at this year’s NYU International Hospitality Investment Forum.
Dive Insight:
The Blakely, located on West 55th Street between Sixth and Seventh Avenue, is situated in “one of the world's most important hospitality markets and the ideal location for our first US property,” David Fattal, founder of Fattal Hotel Group, said in a statement.
“Over the years, we have built a strong presence across Europe’s leading gateway cities and established a diverse portfolio of hospitality brands that resonate with both business and leisure travelers,” Fattal continued. “Expanding into New York represents the next chapter in our evolution into a global hotel company.”
Fattal sees long-term potential in The Blakely, which “benefits from an exceptional Midtown Manhattan location in the center of one of the world’s most dynamic destinations,” Nissenbaum said in a statement. During NYU IHIF, he said New York City represents a significant growth opportunity for Fattal.
In recent quarters, New York City’s Manhattan lodging market has seen strong RevPAR performance, driven by luxury hotels, according to PwC research. In the first quarter of 2026, Manhattan RevPAR increased roughly 5% year over year, driven by a 6.5% increase in ADR, a May PwC report found.
Other investors looking to capitalize on New York’s market strength include Miami-based Gencom, which acquired The Ritz-Carlton New York, Central Park earlier this year following its December purchase of the InterContinental New York Times Square and its Thompson Central Park buy in 2024. Blackstone, meanwhile, acquired the Kimpton Hotel Eventi in New York City for approximately $175 million last year.
More broadly, U.S. hotel investment is on track for growth in 2026, as the debt market strengthens and foreign investment increases, hospitality executives shared at NYU IHIF.
As for Fattal’s potential growth across the U.S., Nissenbaum said during the conference that “once you plop down one hotel, it quickly mushrooms into 10, 20 or 30 hotels.”
Fattal’s portfolio currently spans multiple segments, including business, lifestyle, premium and extended stay. Founded in 1998, it operates the Leonardo Hotels and NYX Hotels brands as well as premium and lifestyle collections.
