Fattal Hotels has acquired the leasehold of The Dilly for £66.5 million, strengthening its London portfolio as the Grade II-listed Piccadilly hotel continues a phased refurbishment ahead of a planned 2028 rebrand.
Fattal Hotels has acquired the leasehold of The Dilly, the trading name of the former Piccadilly Hotel landmark in central London, for £66.5 million.
The Grade II-listed property is positioned between Piccadilly, Regent Street and Air Street. Fattal has operated the building as a hotel since 2022.
The transaction forms part of Fattal Hotel Group’s international growth strategy and supports its continued expansion across major European gateway cities. The acquisition gives the group control of the leasehold at The Dilly, which it has operated since 2022.
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“The Dilly occupies a key strategic location in the heart of central London and remains one of the city’s most iconic hotel assets. This acquisition represents another important milestone in our global expansion strategy. We are grateful for the continued trust placed in us by the investors of Fattal Partnerships, as reflected in the successful completion of this complex transaction following lengthy negotiations. This confidence was further demonstrated by the latest first closing of approximately €0.5 billion for our third partnership launched within the past four years. We look forward to continuing to invest in and operate hotels across 21 countries throughout Europe, creating long-term value for our partners and stakeholders.”
Guy Vardi and Yaniv Amzaleg Fattal Hotel Group
Fattal Hotel Group Expansion
Following the acquisition, Fattal Hotel Group operates more than 320 hotels across over 120 destinations worldwide.
The group has raised approximately €1.5 billion through European partnerships and acquired more than 60 hotels across Europe during the past four years.
Recent transactions include the acquisition of Zien Group and its 12 hotels in the Netherlands, expanding Fattal’s Benelux portfolio to 28 properties.
The group also acquired Hotel Saint in Aldgate, its 11th London property. In 2026, it completed the acquisition of Cora Resort and Spa in Afytos, Chalkidiki, Greece.
The Dilly’s Piccadilly History
The hotel originally opened as The Piccadilly Hotel in 1908 and occupies a prominent position close to Buckingham Palace, the West End and the National Gallery.
The property was once a favourite of King George V and is approaching its 120th anniversary.
The Dilly has 283 bedrooms, including 28 suites. Its dining venues include Madhu’s of Mayfair, The Terrace and Downstairs at The Dilly.
Leisure and events facilities include a swimming pool, squash courts and event spaces.
Refurbishment Scheduled For Completion In 2028
The hotel is undergoing a multi-million-pound refurbishment programme scheduled for completion in 2028. Work is being delivered in phases, with the property remaining open throughout.
Interior designer Suzanne Garuda is leading the transformation, which will cover guestrooms and suites, dining and bar areas, and leisure facilities.
The hotel is due to receive a new name and brand identity as part of Fattal Group’s Limited Edition hotel collection. Further details have not yet been confirmed.
Madhu’s of Mayfair reopened in May 2026 following the introduction of a new concept.
