Less than a month after it launched a new service for short-term apartment rentals via Airbnb, Israel’s Fattal Hotels is making another foray into the shared economy, this time with shared office space.
TheMarker has learned that Fattal has rented two floors in the Amot Insurance complex in Tel Aviv that it will convert into shared office space on the WeWork model. The new, 5 million shekel ($1.3 million) facility will begin operations next April.
Fattal is entering a crowded market. Although there are no exact figures on the number of shared workspace facilities in Israel, industry figures estimate they number 80 just in the Gush Dan (greater Tel Aviv area).
In the last year alone facilities have been launched by Labs, which is controlled by the Israeli entrepreneur Teddy Sagi, and European-based Rent24, which said it also planned to expand into shared living spaces. We Work, which pioneered the concept, recently expanded its offerings with a four-floor site at the ToHA site in Tel Aviv.
A key part of the company’s strategy is to locate its shared-office facilities near its hotels so that office tenants can make use of hotel services, including meals, spa and bar services and conference facilities, said Ron Yariv, who is heading up the new Fattal operations.
“That way companies can enjoy many additional services beyond the office services and community networks offered in other work spaces,” Yariv said. “At the same time, hotel guests can make use of our office services and network with other business people renting space in our facility.”
Fattal’s first shared workspace will be located next to one of its NYX boutique hotels, which has been operating from the Amot complex since 2014. The company signed a 20-year lease on the space at 1.65 million shekels annually.
Shares of Fattal Holdings, which went public on the Tel Aviv Stock Exchange last February, ended 0.1% higher at 445.30 shekels on Sunday.
Fattal, which operates 186 hotels in Israel and 18 European countries, has been offering short-term apartments via Airbnb and other booking sites under the “Master” brand of its Leonardo Hotels chain. Master offers apartments in two buildings in the trendy Tel Aviv neighborhoods of Kerem Hateimanim and Neve Tzedek.
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