Fattal Hotels – a success story

The Fattal Hotels Group was established in 1998 and today (2005) is the leading hotel group in Israel. The group includes the Le Meridien hotels, Magic hotels, Sheraton Paradise hotels and the Goldan Tulip Privilege hotel.

The beginning – Le Meridien Hotel Eilat
The Le-Meridien hotel in Eilat was opened late 1998. It is a luxury all suite resort hotel with 250 suites that was designed to meet the high international standards of the Meridien hotels.
After a long process of inspecting all the possibilities available in Israel, the management decided to install the complete Optima Line, which includes the Optima PMS, Optima POS and Optima Priority ERP for the back office.

Magic Sunrise Club and Magic Palace Hotel
By the summer of 1999 another two hotels were opened in the area of Eilat. The Magic Sunrise Club, an all-inclusive, deluxe, desert holiday village with 280 rooms and The Magic Palace Hotel, a magnificent 5 starts family hotel with 300 rooms located on the marina of the city.
Both hotels were built and managed individually and both installed the full Optima Line of hotel applications.

Building up the Fattal group – The need for CRO
Late 1999, when tourism industry became prosperous, the Fattal Group, running one hotel so far, signed a contract to manage both Magic Palace and Magic Sunrise hotels. 
At the beginning, each hotel managed its own reservations department. As the group management lost control, hotels were competing with each other, and reservations were refused and not diverted to other hotels. A decision was taken to centralize all reservations departments to one office using ASP services from an external provider (Ardom), who uses Silverbyte’s ASP technology.
To build the CRO, a joint committee of Silverbyte and Fattal was founded including a project manager, expert in central reservations office, a system analyzer and an ASP expert.
Within two months the central reservations office of the Fattal hotels was up and running with 20 operators using an advanced call center technology and working online on the hotels’ databases, handling direct and travel agents individuals and groups reservations as if they were working in the hotels. 
The idea of taking the reservations department out of the hotels and centralize them in one office under one conductor (Fattal Reservation Manager) proved to be a success story:
- Occupancy percentage went up 
- Average rates went up
- Human resources costs went down. 
The Fattal CRO for the three hotels in Eilat was a success story.

Fattal group is the fastest growing hotel chain in Israel
During late 2000 and 2001 more hotels joined the Fattal group and the group expanded to other regions of Israel. Owners of hotels changed their management company to Fattal: 
- The Eilat Sheraton Paradise Hotels (2 hotels, 500 rooms)
- The Paradise Be’er Sheva (300 rooms formerly Hilton BS)
- The Le Meridien Haifa (300 rooms)
- The Nirvana Dead Sea Spa hotel (400 rooms)

- The Golden Tulip Privilege (300 rooms joined 2003)

- The Le Meridien Dead Sea (600 rooms joined 2004)

- Club Med Eilat (Joined 2004)

The first decision of Mr. David Fattal and the hotel owners was to centralize the databases of the group and to replace the current applications (Fidelio, Lodgistics, Rothstein, Micros) with the Optima Line using Ardom’s ASP.
The connection of the new systems was smooth and was done overnight. The database of the new hotels relied on the information already existing in the group’s hotel and reflecting the procedures and policies of the Fattal group. 

The success story of Information Technology
The major decision of Fattal to: 
- Centralize the information 
- Centralize the computing
- Outsource the IT service
Proved to be the right decisions. 
Centralizing the information (the operational database) allowed the group to improve and add more new applications such as:
- Multi PMS - improve CRO operations
- Optima Central Reporting – Executive Information tool
- Optima Sales & Proposals – Quotations and proposals for groups and congresses
- Optima Loyalty Club 
- Centralized purchasing 
- Optima WIRS – on line room sales over the Internet

Centralizing the computing saved the owners and the group a great deal of money on computer operations and maintenance (over $200,000 in the initial investment and over $50,000 a month for the ongoing operations compared to a similar group) 

Outsourcing the IT services (rather than building its own ASP) saved the group a lot of money (as mentioned above) and released the management in all levels from the head ace of dealing with computing to their core business.

Prolog
The success of the Fattal group hotels is well noticed in the Israeli Hospitality Industry. More hotels are considering joining the group and enjoying the high level of management. 

In addition to the abilities and talent of Mr. David Fattal and his staff, Silverbyte’s vision, technology and products are part of this success.

Silverbyte is proud to be a part this success story.

 

Additional information after 2005:

October 2005 - Silverbyte Israel won Fattal Hotels Cherished Supplier Award

It is the second time “Fattal Hotels” grants such award. The award was given to Silverbyte for it giant contribution to the chain and the professional work done as the main software supplier of the chain more and beyond the expected.

Mr. David Fattal writes: “Since the establishment of Fattal Hotels Silverbyte stood by us in each addition and each hotel changeover, supporting us on any technical and system matter, providing us the best results with no compromises while meeting the highest professional standards. I am proud to give Silverbyte this Cherished Supplier Award that they deserve for their numerous achievements. I have said this before and repeat it pleasantly that I have no doubt that with Silverbyte’s support we shall continue to reach more achievements and develop new high quality systems to the benefit of all of us”.

Fattal chain of hotels, established in 1999, is a young and dynamic company, still it is already the largest hotel chain in Israel, operating 12 hotels under the world's leading brands, such as the Le Meridien, Golden Tulip and Club Med. The company has over 4,200 hotel rooms in Israel's central resorts and business centers. Fattal currently employs 3,000 staff members and its annual revenues from hotels are estimated to be over NIS 450 million.   

December 2009 - 12 additional hotels join the group

On 2009 Fattal Hotel has taken over 12 hotels in Israel with 3,200 rooms. These hotels include all of the hotels previously managed by the Sheraton group as well as 3 hotels managed by the Accor (Novotel) group in Israel. All 12 hotels are rebranded as Leonardo Hotels.
On 2010 Fattal Hotel manages 30 hotels in Israel and 28 hotels in Europe, most of them are branded as Leonardo Hotels. All the hotel are managed using two data centres, one in Tel Aviv and one in Berlin.

 

 

Silverbyte is proud to be a part of this success story.

 

 

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