Sustainability Report 2019-2020

SUSTAINABILITY REPORT
2019-2020

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TABLE OF CONTENTS
Message from the Founder.........................................................................................................3
A note on COVID-19........................................................................................................................6
About us...............................................................................................................................................8
Our vision, values and commitment to sustainability...................................................................8
Ethics and corporate governance.................................................................................................. 14

Hosting our guests with love................................................................................................... 16
Achieving best customer experience............................................................................................ 16
Our hospitality puzzle..................................................................................................................... 18
Respecting the diversity of our guests and fulfilling their special needs.................................. 21
Caring for our guest’s safety and privacy......................................................................................22

Nurturing our employees..........................................................................................................24
Diverse employees..........................................................................................................................25
Health and wellbeing......................................................................................................................26
Learning and development............................................................................................................28
Promotions and employee advancement....................................................................................29

Making a difference in our communities...........................................................................32
Engaging employees in the community.......................................................................................32
Making a difference through partnerships...................................................................................34

Caring for our Environment.....................................................................................................36
Energy...............................................................................................................................................37
Waste................................................................................................................................................38
Water.................................................................................................................................................38
Emissions.........................................................................................................................................39

About this report...........................................................................................................................40
GRI Index...........................................................................................................................................42
SASB....................................................................................................................................................44
Appendix...........................................................................................................................................462

Sustainability Report 2019-2020

strength and what sets us apart, is our people– staff members and managers who work side
by side, as a team and a family, and who arecommitted to making a good thing great! The
combination of diverse people who represent
different cultures - urban dwellers and nature
lovers, new immigrants and locals, men
and women - each bring their own uniqueand personal contribution. Human capitaldevelopment is an important and leading
value for us, so we have many development
programs and management tools for our
employees and managers. We understandDear Readers,that the role of our team besides hospitality is
Throughout 2020, even in the face of to be ambassadors of the hotel industry.
unprecedented difficulties, the Fattal team Corporate responsibility is our guiding
has stayed true to its mission of serving its principle and is reflected in our high levelglobal community with love. The driving of social engagement, work with the local
characteristics of Fattal – love, excellency, and communities and people with special needs.
innovation- that led to its remarkable growth, We always keep the environment in mind andfrom a single hotel management company comply with the standards of the corporate
in 1999 into a global Israeli-based chain 209 governance of a public company.
hotels strong, are the same characteristics that
Alongside fostering human capital, we believe
made it resilient to the many challenges of thein looking ahead to the future, so we havepast year, and the same characteristics thatdeveloped highly innovative technologicalwill carry us through challenges yet to come.
processes for accessibility and service
Today we are a public company, traded on
efficiency. They allow us to respect our guest’s
the Tel Aviv 90 Index of Israeli stock exchange
time and to promptly care for their needs whilewith hotels spanning across Israel, Central
arranging their accommodations prior to their
Europe, the UK & Ireland, Benelux as well as
arrival and during their stay at the hotel. Our
the Mediterranean Basin.
guests have access to tools and apps, which
Our success is not only measured by the give them a variety of actions implementable
number of hotels or by the reputation for across different channels running side by side.
quality that we uphold. Our success, or to say
At Fattal, we are constantly looking forthe least, the secret of our success, our true3

opportunities to reduce the impact of ouractivities on the environment both on the
global and local scale through various
programs.

Our commitment to our guests and ourcompany’s moto is “to lead the hospitality
culture, to stay professional, dedicated &devoted, and to create exciting experiences
A continuously growing number of our hotels and memories for our guests”.
have become a part of local Green Tourism Each hotel has its unique approach toprograms, which provide a framework to understanding and meeting the needs of thehelp our businesses tackle the long-term communities. One of our community projectsustainability issues and reduce overheads. highlights is accommodation of ill children
Furthermore, our European hotels have and their families. In 2018 we started building
collaborated with Löfbergs Coffee Group that two hostels for children with cancer and theiris certified as organic and fair trade, and is a families at Rambam and Ichilov hospitals in
member of the rainforest alliance. Through Israel which will contain resources for patients
this partnership, we are working to build a and their family including guest rooms, asocially, economically and environmentally dining hall, study center, and activity room.
sustainable business.
In Europe, we work with Ronald McDonald
As a further development, the network began Foundation to build new rooms at theto create large-scale projects designed to meet residence for sick children and their families.
additional needs of our guests, such as: short- While, in the UK & Ireland, we collaborate
term apartment rental, launch of the “ROOMS” with Scope, a national disability charity thatproject - joint work complexes near and within campaigns to challenge and change negative
the hotels, establishment of “Fattal Terminal” attitudes about disabilities, as well as theat Ben Gurion Airport, which allows fast border majority of our hotels receiving the Disability
Confident accreditation.
crossings, accommodations and more.
As a community-based network, we operate
and work with the community and for thecommunity. Our hotels are situated in many
diverse locations and cater to every type ofguest: - families, business guests or travelers,
couples, medical tourists, religious tourists
and more. We see this as a realization of ourThanks to the wonderful people who havevalue, “Hosting with Love”. Our mission is toaccompanied Fattal from its founding, we
provide great hospitality and make guests feel
have been able to develop, preserve and whenat home.
necessary change over the years according to
the spirit of the time.
Thanks to our human and technologicalresources, we continue to develop andconquer the markets. Today, the chain has
more than 209 hotels in 20 countries andmaintains its status as the largest hotel chain
in Israel, despite the competitive environment.

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Sustainability Report 2019-2020

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A NOTE ON COVID-19
In March of 2020 our hotel operations were legally
mandated to shutdown across the globe.
They remained shut down until Februaryof 2021 when vaccination campaigns
allowed for the partial reopening of thetravel and hospitality industry. Since
then we gradually opened our hotels andincreased occupancy in full cooperation
with the local and national guidelines.
Our guest and staff’s health remain ourutmost priority and we continue to act inaccordance to all local and national safety
precautions. Extra sanitation, masks, social
distancing and other safety measures are
all being implemented closely to insure thehealth and comfort of our guests and staff.
In order to insure business continuity
during closure we were forced to makemany tough decisions including reducing
our work force, making wage reductions
and placing employees on unpaid leave.
Additionally, we received state-guaranteedloans from the Israeli and German
government.
Doing our part in the battle against
COVID-19 meant operating two of our Israeli
hotels for people who needed to be isolate
either because they tested positive for
COVID-19 or because they were returningfrom abroad. Staff at Leonardo Negev
and Leonardo Jerusalem were trained by
the Home Front Command on necessary
precautions to take while hosting COVID-19
positive guests. For a four-month period
the hotels hosted COVID-19 guests withdiligence and perseverance supporting
guests and helping keep the general public

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safe during a tumultuous period.
In 2020 our Central Europe hotels
established a social fund called “Share &Care” which provides monetary assistancefor employees who are facing situationsof financial hardship, for example during
COVID-19. Employees can apply via emailor through a direct conversation with theirlocal HR and the application is reviewed
by a Social Fund Advisory Board which
reviews the situation and makes the
allocating decision. The idea for the fund
was developed by the 2019/2020 Leonardo
Academy Expert group as a way for the
hotels to offer ongoing support for theircommunity of employees.
We would like to thank all the nurses,
doctors and frontline workers from thebottom of our hearts. Their bravery
was instrumental in saving lives andsuccessfully diminishing the spread of thevirus so we could hug our loved ones again.
There work was instrumental in allowing
us to get back to what we do best: Hosting
our guests with love.
During COVID-19, the Benelux hotels
developed the initiative “Hospitality from
Home” in order to continue to serve theircommunity and combat loneliness. Actsof hospitality such as delivering flowers,
supplying home cooked meals, donatingbooks to open air libraries and writing
postcards were preformed to bring comfort
and create community despite quarantine.

Sustainability Report 2019-2020

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ABOUT US
The global Fattal Hotel Chain encompasses
more than 209 hotels, 40,000 rooms and over
12,000 employees and is currently active inIsrael, UK & Ireland, Central Europe, Benelux
and the Mediterranean Basin. The chain’s
hotels include the Leonardo brand, Herods, U
Hotels, Hotel Rothschild 22, NYX Hotels, Jurys
INN, Apollo Hotels and Bachar House.
While the Fattal Hotel Chain attributes its
continued growth to the combined talents of its
many gifted and dedicated people, ultimately
this success is due to the determination andvision of its founder, David Fattal. David started
his career as a waiter and acknowledges that
this modest beginning gave him early insights
into the core values necessary to attract guests
and convert them into repeat customers.
Showing a natural aptitude, he gained rapidly
promotion to positions of influence. In 1984,
at the age of 27, he was appointed AssistantGeneral Manager of the prestigious Dan
Accadia Hotel in Herzliya. By 1988, he became
General Manager of King Solomon’s Palacein Eilat. David Fattal founded the Fattal Hotel
Chain in 1999, with the chain’s headquarters
based in Israel and operations constantly
expanding to other regions.
For many years now, the Fattal name has beensynonymous with innovation in the hotelindustry, and continues to make inroads into
the hotel markets across the globe. It attributes
this success to a strong determination toensure that guests leave with an enduring
feeling of satisfaction and good value.

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Our vision, values
and commitment tosustainability
Vision: We will lead the hospitality culture,
host professionally and lovingly and create
exciting experiences and memories for ourguests.
Guiding values:
1. Host with love
2. Responsibility and setting a personal
example3. Excellency
4. Cultivating human capital
5. Innovation and creativity
6. Taking personal initiative and continuous
improvement
7. Community involvement
Commitment to sustainability
The World Tourism Organization recognizes
that the tourism industry continues togenerate 10% of world jobs annually. As
an international hotel chain, Fattal aims tocontribute to the positive developments ofthe tourism economy and to create a valuable
economic, social and environmental impact.
Fattal realizes its ability to enhance the welfareof people, protect nature and preserve cultural
heritage by adopting trends of ‘micro tourism’,‘cultural tourism’ and ‘sustainable tourism’.
These developing sectors of tourism allow
people to interact in a genuine and meaningful
way with other cultures while helping toSustainability Report 2019-20209

support and revitalize their economies andenvironment.
Fattal creates jobs and promotes peace,
prosperity and observance of humanrights and fundamental freedoms, without
distinction to race, sex, language and religion.
Journey Ventures
At Fattal, we recognize the increasing role thattech plays within the hospitality industry andthe importance of investing in new ideas. With
these beliefs in mind we decided to create
Journey Ventures, a venture capital firm
focused on the fields of tourism and travel
technology.
We created Journey Ventures (JV) in
partnership with Spring Ventures, a techfocused investment firm. By joining forces withSpring Ventures we combined their experience
investing in technology-based platforms with
our in-depth knowledge of the hospitality
industry to support innovative start-ups at theintersection of tourism and tech. Since startingin 2019, JV has invested over $7 million andestablished a diverse portfolio. An exampleof the type of companies we invest in throughJV is Guesty, a platform that offers specialized
services for short-term rental management,
working in tandem with services like Airbnb
and VRBO to promote the sharing economy.
Another example is Thriver, a comprehensive
platform to improve companies’ work culture
and employees’ work-life. Thriver’s online
platform helps offices coordinate teambuilding activities, volunteer and professional
development opportunities, cater healthy
food, and much more. Additional companies
that JV has invested in are; We Trip, Ontopo,
Upstay, Whizar, Avian, Roomernag, andSplitty Travel. This wide array of travel related
applications has been particularly important in
2021, helping businesses maximize profits andrecover efficiently from COVID-19 shut-down

10of the travel industry in 2020. By investing intechnology companies at the forefront of thehospitality industry, we see Journey Ventures
as not only a strong investment portfolio but asa way to support and improve the hospitality
industry as a whole.
Defining sustainable global management
approach
In 2021, we prepared our first sustainability
report that outlines current projects andinitiatives in sustainability and analyzes thematerial impact of the Fattal Group on theworld. During the process we conducted
an internal analysis of the topics that arematerial for the hospitality sector in termsof sustainability. This included an analysis of
our peers and of international standards tounderstand what topics are material to ourarea of operation:• Achieving best customer experience;• Guest health, safety and privacy;• Prevention of human trafficking;• Energy usage;• Waste generated;• Water usage;• Food and food waste;• CO2 emissions;• Employment;• Training and education of our employees;• Diversity and equality;• Social and economic inclusion;• Accessibility;• Caring for local communities;• Sustainable supply chain;• Promoting local cultures and products;• Developing sustainable tourism, raisingawareness and engaging our guests;• Business continuity

Sustainability Report 2019-2020

In 2021 we aligned our projects with the following Sustainable Development Goals, and in the
coming years we will continue these projects and maximize our impact in relation to achieving
the SDGs.
SDG

Our Actions
Vocational education and equal opportunity for both men and women. As seen with thelearning opportunities made available to all. See page # 28
• LeoDO• Fattal Academy• Leonardo Academy Central Europe• Grow Academy UK& Ireland• Leadership Academy BeNeLux
Eliminating discrimination both in recruiting employees, and in the workplace itself
through trainings and policies. See page # 25
Creating productive employment and decent work through the vast opportunities of
personal growth inside the company for all women and men, including young people andpersons with disabilities through the various types of employment provided. See page # 25
Fattal promotes economic inclusion of all people regardless of age, ethnicity, religion anddisabilities through inclusive employment practices. In addition to hiring people fromdifferent geographical and religious backgrounds we also primarily hire our management
through internal hiring (75.5% in 2019 and 82.75% in 2020) meaning dedicated employees
have opportunity to grow. Across our hotels we employee 272 employees with disabilities,
giving them dignified work and helping them achieve economic independence. See page
# 26
Donations of meals to food banks in Israel and Central Europe, as well as community workin all regions with soup kitchens and other NGOs.
Responsible consumption and production in the hospitality sector. Substantial reductionof waste generation through prevention, reduction, recycling and reuse. Adoption ofsustainable practices and integration of sustainability information into the reporting.
Promotion of public procurement practices that are sustainable. Following sustainable
tourism practices that create jobs and promote local culture and products. see page # 36
Fattal implements electricity saving strategies in order to reduce our energy footprint,
thus reducing our emissions and helping combat climate change. Energy efficiency
actions include upgrading equipment, regularly checking insulation, automatic lights andmotion sensors and educating staff on energy usage. Our per room energy consumption
decreased on 10% from 8596 KWH to 7794 KWH from 2018 to 2019. See page # 39
In the UK and Ireland we train our staff to recognize the signs of human trafficking. From
this initiative we have gained insight into our ability to reduce human trafficking in all of
our areas of operation. See page # 22

This was our first step towards defining the sustainable global management approach, basedon understanding of our material impacts, existed practices and potential to minimize ourenvironmental footprint and maximize economic and social value.

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Our Management TeamOur management team is composed of talented leaders from across the globe that guide
us in achieving our vision, values and sustainability commitments.

DAVID FATTAL

Owner Fattal Hotels
Chairman

AVIA MAGENManaging Director
IsraelJASONCARRUTHERSYORAM BITON

Managing Director
Fattal UK & Ireland

Managing Director
Leonardo Hotels
Central Europe

SHAHAR AKA

OFER RAFIAH

CFO Fattal Group12DANIEL ROGERManaging Director
Fattal Hotels Europe
and UK

M&A Director

RONI ALONIManaging Director
Mediterranean Region

MAHER NIMERCFO Europe & UK

ALEXANDER KLUITManaging Director
Leonardo Hotels
Netherlands & Belgium

Sustainability Report 2019-202013

Ethics and corporate governance
Board of Directors

SHAHAR AKA

DAVID FATTAL

CFO and Director

Chairman of the Board
CEO, Owner

SHIMSHON HARELSHIMSHON ADLER

Director

YUVAL BRONSTEIN
Director

YOCHI YACOBI

External Director

Our unitary Board of Directors was put
together in the beginning of 2017. As of theend of 2019, the board of directors comprisedof six members. Two members of the board
were employee representatives, as well as two
corporate executive officers.
The board was comprised of three
independent directors, as well as five nonexecutive directors. There is CEO duality,
meaning that David Fattal is both the sitting
CEO as well as chairman of the board.
The term for sitting board members is limited
to nine cumulative years, and three years forexternal directors. Directors are reappointed

External Director

annually during meetings, which take placeno later than 15 months from the end of theprevious meeting.
The Board of Directors has an age range of 5079, an average age of 65, and no age limit. The
Board constitutes one female member.
In 2019, the board met a total of seven times.
There was a total attendance rate of 98%1;
independent directors had 93% attendance.
In 2020, the board met a total of 11 times
and increased its total attendance rate toa remarkable 99% and equally impressive
independent director attendance rate of 98%.

Committees of the Board of Directors

Compensation
Committee (CC)

Audit Committee
(AC)

2019

2020

2019

2020

Number of members in the committees

3

3

3

3

Number of Independent Directors on Committee

2

3

2

3

Number of Non-Executive Directors on
Committee

3

3

3

3

Number of Committee Meetings

1

4

3

1

Committee Meeting Attendance Percentage

100%

100%

100%

100%

1None of the Board Members attended less than 75% of themeetings.

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Sustainability Report 2019-2020

Conducting business ethically

Our commitment to stakeholders

Conducting our business honestly andproperly is critical to the Fattal Hotel Chain's
continued success and growth. At Fattal, we
have procedures and policies in place to help
us maintain our good reputation, as well as
conduct our business activities in a compliant
manner.

We aim to engage our various stakeholders
which include: employees, guests, NGOs
and international organizations, investors,
owners, suppliers, local communities, local
governments, local businesses. We ensure
their participation through customer surveys,
employee surveys, community activities,
learning programs, loyalty rewards programs
and more.

• Code of business ethics;• Equal opportunity policy;• Whistleblower protection policy.
The Code of Ethics which is currently underdevelopment will includes the responsibilityof each employee to act along the principles
of honesty, trust, respect, responsibility andsecurity while conducting activities on behalfof the Fattal Group.

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HOSTING OUR GUESTSWITH LOVE• 85.17% customer satisfaction rate out of more than
474,000 customer reviews gathered in 2019 2• 92% of Jurys Inn and Leonardo Hotels UK & Ireland
received Four Star AA Accreditation• 80% of our Benelux hotels received four stars• Two our hotels in Eilat were highlighted by theTravelers’ Choice Awards in 2019 for being in the top 3
most romantic and family-friendly hotels in Israel.
• We were named “Best Hotel Chain for Business Travelin Germany” for The Leonardo Hotel brand in 2020

Achieving best
customer experience
At Fattal, our responsibility and mission isto leave guests with a feeling of enduringsatisfaction, as well as complete fulfillmentof their needs and wishes. In all regions, we
strive to provide a prime experience to ourguests, with our employees always going theextra mile to make sure they feel comfortable.
Collecting guest feedback is criticallyimportant to us as it provides us an in-depth
understanding of our customers and supports
us in providing our top-notch service. Working
with TrustYou, a renowned feedback software
platform in the hospitality sector, we collected
more than 232,000 reviews in 2020, and morethan 474,000 reviews in 2019 across our

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network. Our overall satisfaction rate from ourcustomer survey reviews in 2019 and 2020 isover 82%2 speaking to our teams high levelof service excellence in the face of COVID-19
challenges to hospitality.
Internal satisfaction survey
In order to gain comprehensive insights
into our understanding of customer’s needs
we use both internal and external methods
2 Total Satisfaction rate was calculated based on data from all
regions excluding the Benelux in 2019. The average for 2019 was
85.17% . In 2020, the satisfaction rate was 81.1%, based on over
232,000 reviews collected from all the regions.

Sustainability Report 2019-202017

of collecting data for monitoring guest To guarantee a pleasant and personalized stay,satisfaction and reviews.
we supply ways for our guests to communicate
Our internal process includes a guest their preferences, restrictions, and needs whensatisfaction survey sent via email after they book with us. This allows us to update thecheckout. The survey includes through relevant staff and helps ensure a pleasant stay.
questions to best capture the guest’s Having different forms and channels of
experience, such as;communication is of top priority to us. From
• How would you rate your satisfaction with traditional methods such as phone calls withrepresentatives at reservation centers, tothe quality of the food at the hotel dinner?
more modern methods including SMS, Chats,• To what extent did you feel that the team WhatsApp and Facebook. We make certain
members hosted with love?
that no matter who or where our guests are,• What do you find is most important to they can always be in contact with us.
improve at the hotel?
**** stars AA Accreditation

Our hospitality puzzle

As part of the drive to reclassify Jurys Inn
and Leonardo Hotels UK and Ireland as afour star brands, the company is delighted
to announce that 92% of its hotels have now
received Four Star AA Accreditation and wereawarded immediately after inspection. We are
expecting to attain the Four Star Accreditation
across the group in the coming years.

Guest memberships

Customer Relationship Management
We develop long lasting customer
relationships with our clients around theworld, to ensure that they recognize Fattal asa reliable ally. Representatives at reservation
centers, the public inquiry department in themain office and hotels, and hotel receptionists
use a CRM System to ensure optimal service
and customer satisfaction through eachphase of the customers’ visit. Our CRM systemis accompanied by other systems such as
Optima, Digital Assets, UP STAY, Informatics
and more, which provide us with a 360 view ofour guest's experience.

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The wide selection of Fattal hotels around theworld, the variety of brands, hotel types anddifferent accommodation bases, combinedwith various benefits and discounts for clubmembers, allows each guest to book his or her
preferred stay at the desired location and a
price for each pocket.
Fattal Loyalty programs are one of the main
ways we continually provide guests withexceptional experiences. Club members
enjoy receptions, entertainment, staff service
and performances throughout their stay as
well as in-room gifts and lots of treats andsurprises. The packages are available to clubmembers and include special benefits at any
Fattal hotel. Even beyond their stay, we give
our guests inspiration and experiences within
their daily routine. Our Members Club recently
underwent a re-launch and a new benefit wasadded to the club members: "Night 11 Gift".
The new benefit allows our club members
to receive the 11th night for free. In keepingwith the core value of the Fattal Club "Beyond

Sustainability Report 2019-2020

Expectations", we hold in all our regions monthly conceptual events and weekends, which
include music and entertainment shows, chef dinners, lectures and quality content activities
with first-rate artists and stars.
As part of the Fattal membership group, our guest can enjoy a 10% discount on rooms,
restaurants, spa, and other experiences any time of the year. Additionally, we also treat ourguests with:
One month of your choice

15% off the room rate

Birthday month

20% off first room and 10% off 3 additional rooms

Wedding anniversary

20% off first room and 10% off 3 additional rooms

With Jurys Rewards membership in the UK & Ireland the more our guests stay, the more theycan enjoy. Members can collect points for money spent on rooms, food and drinks in the hotel.
They can then swap points for gifts like free stays, vouchers, dinners and enjoy exclusive booking
discounts, member only sales and other benefits.

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With the Leonardo Advantage Club in Central
Europe and Benelux, our guests can collectpoints with each stay and exchange them forfree night stays, exclusive booking discounts,
invitation for special events and more. Our
well-known partners Lufthansa Miles & Moreprogram and the Deutsche Bahn, collaborate
with the Leonardo Advantage Club to allow
our members to use their points towards free
flights and train tickets.
Private terminal at Ben Gurion Airport,
IsraelLaunched in 2019 The Fattal Terminal is the firstprivate terminal in Israel to serve passengers
on private flights, government officials, senior
executives, international delegations andtravelers seeking to upgrade the experienceof their departure and entry to Israel. The
Fattal Terminal allows passengers to choose
between 3 packages: Lounge Hall, Private
Room, or Accommodation, which is a full VIP
service. In each package passengers enjoy
private and fast transit services that include
private passenger hallways, check-in services,
border checks, security and transportation
to aircraft. The terminal also includes privaterooms that offers a steward service, attachedshowers, and rest rooms. The facility includes
a couple advanced business centers equippedwith a projection and amplification system,
video conferencing equipment, and highspeed internet making them perfect for press
conferences and a variety of business events.
Masters Collection
The Masters Collection is a project exclusively
presented by Leonardo Hotels as a fresh new
approach to premium accommodation. It
is designed for those who love to immersethemselves in every location they visit andis currently operational with 53 apartments
spread across three cities in Israel: Tel

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Aviv, Haifa, and Beer Sheva. The Masters
Collection offers guests centrally locatedserviced apartments with deluxe hotel-styleamenities plus all the comforts of home. Eachapartment comes with a dedicated concierge
who is available round the clock for tips onfood, culture, entertainment, and everything
in-between. The Masters Collection also offers
a Master of Business option for professionals
that includes airport transfers and round theclock support.
Working ROOMS by Fattal
In 2019, we launched a co-working venturethat is combined with hotels to create a
new kind of hospitality, ‘workspitality’. This
new workspace venture is embracing andinnovating the future of the shared economy,
allowing an affordable workspace for our
local and international guests and supporting
their business. ROOMs co-working spaces
offer super-fast internet access, printing
hub, an array of working spaces and various
sized meeting rooms. We also bring to theexperience our hospitality amenities offeringa lounge area, room service, bar access anda community concierge. Currently there are
already five locations servicing solo workers
and teams across different areas of Israel.

Sustainability Report 2019-2020

Respecting thediversity of our guests
and fulfilling their
special needs• What is: accessibility, equality,
discrimination

Fattal’s Equal Opportunity Policy is a handbookof rules and guidelines for our employees that
explains how to treat all guests. The policy
distinctly states that refusing to provide goods
or services to a customer based on their sex,
gender, pregnancy, color, race, nationality,
disability or ethnic and national origins on
any level is considered discrimination and isillegal.

In the UK & Ireland region a majority of ourhotels have received the Disability Confident
Accreditation. This campaign supports
employers in hiring people with disabilities
through better requirement practices,
networks and inclusive work culture.

Accessibility
Making our hotels accessible to guests withall forms of disabilities is a matter we takeseriously. We consider it our duty to makereasonable adjustments that accommodate
disabled guests including removing, adapting
or altering hotel facilities to make them moreaccessible. Our commitment in the coming
years is to expand our hotels’ accessibility
to allow our disabled guests to feel more
comfortable and at ease during their stay with
Fattal Group.
In the majority of our hotels physical access
is made available for various disabilities,
including wheelchair accessible hotel rooms.
In addition to this, our hotels in Israel are
equipped with special accessibility featureson televisions, allowing guests with sensorial
disabilities watch and enjoy. All hotels in
the UK and Ireland region have a publicaccessibility statement that varies according
to accommodations offered at the site.
In Israel, a mandatory course about hostingguests with disabilities must be completed by
all members of staff, teaching:• What are: the various disabilities• How to provide service that is accessible,
sensitive and respectful of the various
disabilities.

Food safety and dietary needs
Our staff is trained to be conscientious of guest
allergies and dietary needs such as, diabetics,
celiac, milk sensitivity etc. Our hotels areprepared for a guest’s request to change and/or prepare special dishes.
Head Chef Shalom Kadosh prepared a booklet
that is handed out to all chefs in our hotels,
and includes a list of products that must be
stocked and available at all times to makea hotel friendly to dietary sensitivities. The
booklet also includes special recipes handpicked by the head chef that are gluten free,vegan or vegetarian.
Food health and safety for our guests is under
the direct responsibility of our staff. Every hotel
conducts food safety and hygiene trainings
that is undergone by all staff members. In
Israel, the staff has full access to computer
manuals in case of any questions or concerns.
Furthermore, we work with a bio-lab that
performs lab checks of the food three to fourtimes a month to ensure quality and hygiene.
In 2019-2020 there were no cases of foodborne
illness outbreak associated with Fattal
restaurants.

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Caring for our guest’ssafety and privacy
Guest confidentiality and privacy
As part of our business, we collect andprocess personal data in respect of our guests.
Information is collected with the consent
of our guests and is used purely for serving
the guests’ needs. In all regions we comply
with the General Data Protection Regulation(GDPR) that is applicable to privacy.
The Fattal group has detailed policies dealing
with privacy of guest data that is specific toevery region. In addition, in Central Europe
we have two external companies that control
the processing of personal data in our hotels,
ensuring the highest level of protection.
We are committed to continuously improving
our cyber security to prevent breaches of
information. Across all our operations we had
eight leaks in 2019 and four in 2020, however
none of them resulted in the loss of confidential
guest information. In order to eliminate future
security risk a cyber security evaluation was
preformed across the company by an outside
vendor. We continue to strive for a high level of22

security excellence across our whole company
sphere.
Guest safety and security
We are committed to providing a safe andsecure environment for our guests and haveappropriate security measures in place toprotect them.
All our hotels have active policies on sexual
harassment, and staff go through extensive
harassment trainings. Each hotel has anannual training on the topic of harassment
prevention and appropriate workplace
behavior. Additionally, employees also go
through an anti-harassment training as partof their onboarding process when they startworking at Fattal.
In the UK and Ireland 80% of our employees
have completed bespoke online training
to educate them on preventing humantrafficking. From this initiative we have gained
insight into how we can to reduce humantrafficking in all of our areas of operation.

Sustainability Report 2019-2020

23

NURTURING OUR EMPLOYEES• 25.7 hours of training per
employee in 20193• 376,773 total hours of
training in 20194• Women are holding
48% of UK and Ireland
management positions• 75.5% of Hotel managers
were hired from within thecompany in 2019
• Fattal is a leader in genderequality with an overall
pay gap of only 1.93 %throughout the company
Our vision is to be leaders of the hospitality
culture globally, and we understand that ouremployees play a crucial role in achieving this.
The Fattal Hotel Chain attributes its continued
growth to the combined talents of its many
gifted and dedicated people, bound together
by a common corporate culture that is greatly
influenced by David Fattal’s personal story,
which has given him insights into creating a
positive experience for our employees.
We apply the same philosophy we have about
our guests towards our employees. We wantthem to feel special and we are committed

Internal Communication Platforms
LEAPP
In Europe, we have more than 3000
employees and mutual communicationand distribution of information isimportant to us. We use an internalsocial media platform called LEAPP. In
this application, our employees will findthe LeoWiki which covers a lot of basic
information, vacancies in LeoJobs andof course a lot of current information in
our main stream LeonardoAll, where all
employees can post about best practices
and their experiences from everyday
working life.
In 2021 we integrated LEAPP with ouronline training program. Employees
can now access a library of useful online
trainings through our Grow Online
program.
BeeKeeper
In Israel, we simplify daily communications
by using the mobile communication
platform BeeKeeper. This app helps
our teams stay connected, organizedand on-task. BeeKeeper also has ananalytics dashboard that gives us realtime usage data to help benchmark andmeasure internal communications andengagement efforts.

3 Total hours per employee was calculated for all the regions
4 Total training hours was calculated for Israel, Central Europe and

UK & Ireland.

24Sustainability Report 2019-2020

to fostering a work environment that allows
them to reach their full potential.

Diverse employees

Communication with our employees andteams is a crucial part of how we engage
them, convey important information andensure overall satisfaction. For this purpose, it
is important for us to create a culture of open
feedback and to establish communication
through various internal communication
platforms, employee satisfaction surveys,
hotlines, assessments and more.

At Fattal we take pride in the diversity of ourwork place, and are committed to providing
a harmonious and fair working environment.
We support this commitment with an Equal
Opportunities Policy that ensures we are
creating an organizational culture that isinclusive, respectful and safe. This policy
discusses the prevention of direct and indirectdiscrimination and treatment on the groundsof sex, gender reassignment, pregnancy,
color, race, nationality, ethnicity, origins anddisabilities.

Keeping in touch with retired employees
The Leonardo Academy Group created a
networking platform in 2019/2020 to keep
connected with retired employees fromthe Central Europe Leonardo Hotels. The
senior club lays foundation for passing down
acquired knowledge to new generations of
hospitality workers. All former employees
were invited to join the Senior Club with plans
to continue to invite employees who retire in
the future.
Employee Satisfaction Survey
We run engagement surveys or other modesof measuring such as 1 on 1 talks in all
regions and use them to establish two-way
communication between our employees
and the management team, to measureand increase employee engagement andto understand key improvement areas. In
addition to that, managers have informal
conversations with small groups of workers
on a monthly basis to gauge employee
satisfaction, contentment and concerns in anenvironment without apprehension.
In 2020, the employee satisfaction rate5 was
82%, above the sector average of 79%. We haveassessed this outcome to a greater extent andare implementing changes to further improve
this score.

During orientation, employees go throughtrainingonaccessibilityandsexualharassment.
We take additional measures to combat
sexual harassment including have designatedmanagement members who are responsible
for receiving and processing complaints, tip
Employee story: Oshrit
For the past 7 years, Oshrit has worked
her way up to her position in Guest
Relations at the U Coral Beach in Eilat.
Her first job was at the Méridien Dead
Sea Spa. From there she advanced tomany roles, including a dining room
waitress and lobby waitress. Bornwith disabilities, Oshrit had difficulties
finding work, but Fattal grabbed onto
her and has not let go since. Through thesupport of various employees and theirencouragement, Oshrit has harnessed
her potential for growth through theFattal chain. The “humane warmth”
and “equal opportunity to advance”
within Fattal has inspired Oshrit to strive
towards “self-fulfillment” and reach hergoal to run a division or department
within the hotel.
5 Employee satisfaction rate is calculated from surveys preformed

in Israel and Benelux region.

25

lines for reporting cases and additional training
on the topic for managers. Upon hiring in the
UK & Ireland, all new employees participate
in the BELONG induction program and are
given a ‘New Recruit Buddy’ to more quickly
and comfortably integrate into the team while
completing their statutory learning.
Employees with disabilities
From the day it was founded, the Fattal Hotels
Chain has been integrating disabled people
into its workforce in various capacities. Thisis one facet of incorporating the chain’s corevalues in our everyday operations. We haveachieved our commitment to having at least
one disabled employee for every 100 rooms
for all our hotels in Israel. In Central Europe,
we have been partnering with an organizationthat has assisted us in provide disabled people
with work in all areas of hotel operations since2015. In 2019 we employed 272 employeeswith disabilities across our hotels.

found to exist as wages are set strictly by skill
set parameters.
Ethnic Diversity
We are openly committed and actively
working towards the inclusion of minorities
within Fattal. In Central Europe, we work with
employees from 90 nations worldwide. In
Israel, we provide work visas for Palestinians
in Israel and Jordanians in Eilat, which now isdependent on COVID-19 rules and regulations.
Also in Israel, an impressive 24.25% ofmanagers are part of minority groups.
Percentage of minorities in Israel in
2019-2020
Muslims

Christians

Jews

Druzim

0.29%
21%

6%

Gender Diversity
At Fattal we strive for a workplace in which
all employees regardless of their gender canfeel safe and comfortable being themselves.
We recognize that having a diverse work force
where all employees can thrive is critical to thehealth of our business by bringing in different
perspectives and assets.
Our workforce in Israel and UK consists of 37%
of women.
As an equal opportunities employer, weuphold the Gender Pay Gap Reporting
obligations in the UK, and are looking to
implement it globally. The pay gap for the
women employed by Fattal is 2% medianin the UK; 1.7% in Central Europe and 4%
in Benelux. In Israel no gender pay gap was

26

73%

Health and wellbeing
All employees have a right to expect theworkplace to be safe and secure. At Fattal,
we all have a duty to assist in protecting
this right by complying with the Health and
Safety policies and immediately reporting any
accidents, injuries and/or unsafe conditions.
The Safety Policy is reviewed and updated
annually.
The Group’s Health and Environmental
Manager is responsible for the overall
implementation of the Health & Safety

Sustainability Report 2019-2020

Personal Disaster Fund Pilot
Graduates of the Leonardo Academy
developed a project that is now piloted
in Europe. The graduates created a social
fund where our employees can donate
money. Employees that are facing
personal disasters can apply to receive
financial aid from this fund. So moved bythis project, David Fattal jumpstarted thefund by donating 10,000 euros.

Management System and advising Fattal at alllevels on safety matters.
Each manager, or head of department, or
supervisor is responsible for the safety ofboth the staff and work areas under theircontrol. These responsibilities include thecommunication of the Safety Policy totheir staff, accident reporting, training andenforcing the hotels rules.
Occupational injuries are a serious matterand must be reported by employees to theirsuperior and the HR Department immediately.
This also includes injuries that might happen
on an employee’s way directly to or from work.
Injuries, which cause inability to work for morethan 3 days are recorded in an occupational
injury report.
Hotels across the company support
employees’ health in a variety of ways
including encouraging physical activity byallowing use of gym infrastructure, healtheating and mental health workshops,
adapting workplace menu to offer healthy andnutritious options. Hotels in the Netherlands,
Germany and Britain also offer additional
financial support to employees going throughmental health issues.

Financial Wellbeing
Financial wellbeing is built on a foundationof a stable and consistent income that allows
individuals to meet their needs and support
their family. It is very important to Fattal that
our employees feel financially secure andfairly compensated for their work. In Israel
this translates to 90% of our employees
earning more than a minimum wage before
tips and an average hourly wage of $14.3 in2019 and $14.81 in 2020. In the UK our averagehourly wage was $11.5 in 2019 and $12.09
with 40.16% of all employees receiving morethan minimum wage before tips. By paying
employees more than the minimum wage we
can help contribute to the financial wellbeing
as well as reflect our appreciation for the valueof their work.
Work-life balance of our employees
We are committed to finding innovative andpractical solutions to the problems that ouremployees may encounter with work-lifebalance. We recognize that there are times
when our employees physically and mentallyneed support, and we make sure it is available.
Employees who need help can voluntarily seek
assistance directly from their HR Manager,
who will put them in touch with an external
company that provides confidential employee
assistance programs and is not noted on theemployees personal file.
In the UK and Ireland a work-life balance policy
shines a light on various work-life balancesolutions, which include: job sharing, part-timeworking, term-time working, and flexitime6
working. We also provide career breaks, whichallows an employee to take unpaid leave fora period of time and for a variety of reasons
such as furthering education, traveling or
volunteering opportunities.

27

In Central Europe, we provide regular healthdays to teach our employees how to bettercare for themselves, regional jogging groups
and access to fitness centers. Since 2018,
our Germany hotels received the official
governmental certification for going above andbeyond the legal requirements in promotin
work-life balance in each and every area of
employment conditions, including worktime
options, working from home, job sharing,
unpaid leave and child care. Additionally,
they help support families of kids with special
needs by helping them navigate finding
resources and understanding their rights,
offering flexible hours and daycare options.
In Israel, hotels take various measures tosupport employees who have children,
subsidizing camps and offering financial
advising for families.

Learning anddevelopment
Being part of the Fattal group means
gaining practical, hands-on experienceand accessibility to first-class learning anddevelopment opportunities. We believe thatongoing support and encouragement of ouremployees helps us to establish a worldclass team. We are committed to ensuringthat our employees find their place within thecompany, and have clear paths for their future.
We turn our service vision into structured
career paths that maximize employee
experience and elevate their sense of value
and professionalism.
In recent years, the hotel industry has
experienced quite a few challenges in raising
6Term-working

time is a British term referring to part-time
employment contracts that give employees with children theflexibility to have extended time off during school holidays. Flexitime
is a type of employment where employees can take ownership ofdetermining when they will start/end their work day and how longthey can take for lunch breaks etc within certain pre-set guidelines.

28

human capital. Therefore, we have createdthroughout our regions various learning
opportunities that we believe will inspire
passion for the service industry. We trust thatthrough these opportunities, Fattal Group will:• Help employees acquire knowledge ofprofessional and managerial tools, creating
a desire to develop their career in the hotelindustry.
• Improve employee satisfaction.
• Help employees to find meaning a sense of
pride in their role and work.
Employee Training and Development
cost for 2019

$6,440,400

The various learning opportunities throughout
the Fattal Group were created as a derivativeof the Group’s vision: “We will lead our people
to develop careers in hotels, enrich them withinformation and professional knowledge andgive them administrative tools.”
LeoDo Academy
At the Leonardo Academy in Central Europe,
every employee can join and grow theircareer. The Academy accepts 100 employees
annually to participate in one of the four levels
available: Beginners, Management, Expert
and Expert Senior.
In the UK,Ireland and Central Europe our
employees have opportunities to benefit
from further learning development via GROW
Learning and Development programs andaward winning e-learning platform GROW
Online.
The Fattal Academy in Israel is basedon enabling development pathways,
enrichment, training, career building andpromotion. The courses include professional
tours, management training for all levels andpractical development in Israel and abroad.

Sustainability Report 2019-2020

In order to further motivate our learners, we
decided to implement a point system to help
us track their progress.

a high mobility rate. Across all regions ourinternal hiring rate for management positions
was 75.5% in 2019 and 82.75% in 2020.

In Israel we developed an initiative called“learning from the field”, where team members
share insights from the field that can lead toan improvement.

			Training next generation of chefs
Fattal Group places an emphasis on our
restaurants and dining culture, and pride
ourselves on catering to a variety of tastes. To
create an authentic, unique and exciting dining
experience, our hotels are initiating projects
and cooperation with chefs from around theworld in our kitchens. Through this, we arepromoting local tourism, exposing the local
culinary culture and building connections for
future international collaborations.
We are aiming to develop and train the next
generation of great chefs who will lead thefuture of hospitality and gastronomy. In
Germany, we created a new university study for
Culinary Management that is accredited by theGerman Government as an official bachelor’s
degree. In Israel, we are supporting Darka
School in Dimona with their specialization incooking and graduate training program andare planning to open a first-of-its-kind schoolfor chefs and hospitality, spearheaded by ouraward-winning head chef, Shalom Kadosh.

Promotions andemployee advancement
We are a family and make it a priority tosupport promotions and fill our positions
with people who understand our values andinternal culture. In all of our hotels, we have“Golden Lists” where we mark employees thathave the potentiality for advancement within
the group. We give preference to employees
who have grown alongside us, resulting in

Piotr Matusiak – Hotel Manager –Leonardo Glasgow West End – High
Potential Programme
Piotr began his hospitality journey in2011 as night porter. After about a year in
Glasgow, Piotr was offered the position ofNight Manager, which presented a unique
opportunity to learn several aspectsof running a hotel – financial, forecast,
reception and F&B. After 3 years in this role,
he transitioned to a Front Office Manager
role and joined the Accelerator Program.
Piotr's career further developed as they
became acting Operations Manager in
Glasgow and later the Leonardo Aberdeen
Airport for 10 months. From there, hemoved to Leonardo Glasgow and joined
the HiPo training program to prepare forthe position of Hotel Manager/General
Manager.

Yannick Goossens
Yannick started his career as a night audit in
the Leonardo Hotel Brugge. He developed
his career step by step to become Front
Office Manager. He then was Operations
manager in 3 different hotels (Aachen,
Cologne, London) before he took over at
the age of 30, the Leonardo Royal Munich
which he has managed since.

29

Deanne Fowler – Meeting and Events
Office Manager Jurys Inn Oxford –Insights Programme
Deanne began her journey with Jurys
Inn in 2016 as a Meetings & Events
Coordinator. Within her first three years,
she was promoted three times to Senior
M&E Coordinator then Insights TraineeManager to Duty Manager. With thesupport and development opportunities
offered to Deanne by the Jurys Inn networkand the Insights trainee management
programme, she was able to quickly move
up to the position of Meetings & Events
Office Manager. Deanne was runner
up in apprentice of the year in Oxford
in 2019 and also visited Parliament todiscuss the use of apprenticeships in thehospitality industry to develop employee
skills. Deanne is looking to progress her
next move into an operational role in the
future to help progress her into becoming
Operations Manager.

Jasmin Wartenberg
Jasmin began her work with Leonardo
Hotels Europe as an intern at the reception.
After gaining insights at the reception
desk, she moved on to be the assistantto the Hotel GM. After several years inthat position and gaining more and moreexperience, she moved on to become
Operations Manager and in the next step
General Manager of the Leonardo Hotel
Düsseldorf Airport Ratingen. Following
that, she moved back to her Leonardo
Hotel Cologne as General Manager.

30

Sustainability Report 2019-2020

31

MAKING A DIFFERENCE IN OUR
COMMUNITIES• In 2019 donated morethan $ 786,170“The company’s worldview regarding activities
benefiting the community begins with its
founder, David Fattal, who has championed
love for people and love for hospitality, andhas passed it on to every one of the workers,”- Ganit Buchman, one of the top managers in
Israel responsible for employee training andcommunity projects. Within the Fattal hotel
chain, “hosting with love” is not just a slogan,but a value rooted within all of our Fattalgroup.
At Fattal, we chose to leverage the powerof hospitality making the best use of ourresources and professional skills to assist thecommunities around us. Our many years ofexperience in recreating the comforts of homeallows us to extend this feeling to those whoneed it most in the community, including:
at-risk teens, seniors, holocaust survivors,
soldiers, disabled people, and sick children.
We are enthusiastic about the communities
that our hotels are a part of, and understandtheir significance in our success, as they
provide us with the resources and markets
we rely on. For this reason, it is vital for us toreciprocate in different ways, whether throughdonating money, donating free rooms, or
engaging by hosting diverse types of events.

32

Engaging employees in
the community
We are committed to developing the cultureof community donating and volunteering,and encourage our employees to be actively
engaged. Having the power to improve thelives of others is a privilege and donating is agreat way to reinforce our corporate values,
and feel like our actions stay true to our ethicalbeliefs. We further believe that community
projects initiated by individuals or our hotels
helps boost morality.
In Israel, our employees initiated engagements,
resulting in the opening of “Place in the Heart”.
A shop set up at the Lev Fattal, employee
residence, where clothing, tools, furniture,
and a variety of other items are sold, with allproceeds donated to children in need.
Since 2018 in the UK and Ireland, we hosted
a charity challenge, where our mascot ‘Leo
the Luggage’ journeyed to all our hotels in theregion. Funds were raised by holding bakesales and games to celebrate Leo’s departure,
and also by sponsoring the number of miles
the transporting teams completed. The funds
raised during his long trip were then matchedby head offices and donated to charity. In
2018, the fundraiser’s inaugural year, we raised$70,208 in total and in 2019 we increased thetotal to $101,430 raised. Just like the rest of
us Leo the Luggage did not get to travel in
2020, but is looking forward to continuing
his fundraising travels in 2021 or the years tocome.

Sustainability Report 2019-2020

Being active in the community is one of thecompany’s core values with which all theemployees are instilled.
The LeoDo Program is a project developed by
Leonardo Academy graduates, and createdto support employees participating in social
initiatives. Incentives are chosen based off the“three Ps” people, planet, and profit and, there
are currently projects across Central Europe ina wide range of areas including being run that
support homeless families, underprivilegedchildren and children with cancer.
To celebrate the achievements of the LeoDo

program the annual LeoDo Awards bring
together employees from across the Leonardo
Hotels to participate in a meaningful andinteractive celebration. While in previous years
three top projects where chosen as winners
it was decided for the meeting in January of2020 that the awards would focus on unity andcelebrating the success of all projects- rather
then placing them in a competition against
each other. As part of this event the employees
painted a collaborative mural highlighting theimportance of CSR which now hangs in NYX
Mannheim.

33

Helping students from economicallydisadvantaged areas
We provide internships to students from
economically disadvantaged areas in Poland,
Czechoslovakia, and Hungary. For about three
to four weeks, for 6 hours a day, the students
get practical training at our facilities. They are
assigned a mentor that they follow aroundand help with daily business, allowing theinterns to get to know the insides and outs ofthese positions.
Additionally, in 2021 our Benelux hotels
initiated a program in collaboration with two
universities in Croatia, IST and Aspira, for aholistic scholarship and trainee program. We
will cover the university tuition for three yearsof the students’ studies during which they also
participate in three traineeships each threemonth long at one of our hotels in Central
Europe. Between eight to twelve students will
get to participate in this enriching program
annually.
Assisting Holocaust Survivors
A touching initiative where the maintenanceteam paid a visit to a Holocaust survivor
couple to check out the old house and founda broken bathroom, unsafe shower, androtten pipes. The chain invited the couple tostay at the hotel, and the work team spent a
week renovating the entire house. The elderly
couple was moved by what had been done forthem and the man told his wife as tears ran
down his cheeks: “The house is lovelier thana hotel.”Making a difference through partnerships
Over the years, we collaborated with manyorganizations and foundations that alignwith our areas of priority. Building theselong-lasting partnerships helps us reach awider community, come up with professional
solutions and raise awareness for the cause.

34

Charity Partner Highlight: We are always
looking for more opportunities to give backto our communities, so were excited to join
the cause when Room to Reward (R2R)
an up and coming UK based charity withthe mission of celebrating hard working
volunteers reached out to us. Room to
Reward provides volunteers a break bypartnering with hotels that donate rooms
to host ‘Hidden Heros’ get-away stays. In
2019 we began our partnership by donatingnine rooms and while the pandemic put apause on Room to Rewards work in the in2020, we are excited to continue to hostvolunteers and grow the number of rooms
we donate in 2021 and beyond.
Fattal Hotel for Children with Cancer
Throughout their treatment, children
with cancer have to cope with intensive
chemotherapy
orbiologicalday
treatments, which spread over several
days or even weeks. They are thus required
to make daily long distance commutes
in order to receive necessary medical
treatment. At the end of a particularly
exhausting day, they return home weak
and sore, and so again the next day.
In light of such hardship, the “Lev Chash
Association” in cooperation with the Fattalgroup initiated in 2018 the establishmentof the first of five hotels to be built. These
hotels will be managed and operated
by a professional team of volunteers
specialized in taking care of these patients.
The hotels will allow families, whose childis hospitalized for a long period of time, totake a break during the difficult period. A
place where families can sleep, eat, enjoy
a variety of supportive activities, and get
the strength to remain devoted during
their child’s challenging treatment.

Sustainability Report 2019-2020

Supporting sick children and their families
In Germany, we are very invested in ourpartnership with the AKHD, an organizationthat accompanies children, adolescents andyoung adults with life-shortening illnesses.
Funds for donating are continuously andregularly raised through yearly auctions,contests and comedy shows. In addition tomonetary donations, we support the ill people
and their families emotionally with meals forthe parents, tickets to football games for thechildren, and hosting support groups for thewhole family.
The Fundación Infantil Ronald McDonald
is a children’s foundation that provides
free accommodation for the relatives of
hospitalized children with grave illnesses.
At our hotels in Madrid, we host days of
unforgettable fun, by having a water party forthese children and their families. In addition
to this, we collect solidarity funds to help

the NGO build rooms of a new residence,
specialized to house sick children and theirfamilies.
“HaKav HaMeached” operates in Israel andspecializes in helping to relieve the burden andalleviate the pain felt by children suffering fromsevere syndromes, as well as helping victims ofterrorism and their families. In many different
ways, the Fattal Chain has been contributing
and aiding the NGO over the years, assistingthem with various activities including fulfillingthe children’s special wishes.
One of the most noted is the yearly happening,where the association brings children andteenagers suffering from cancer or from severe
syndromes to the sea resort in Eilat. Fattal
donates all 150 hotel rooms to this event andplace importance on making sure their special
guests have the best time.

“Whenever I call to coordinate a date, I immediately get a positive answer. Fattal is a home that
benefits the community in every sense of the word.”“HaKav HaMeached’s” Association Chairperson Israel Sheinfeld

35

CARING FOR OUR ENVIRONMENT

7• Individual hotels
participating in green
tourism initiatives in every
region and all hotels
taking steps towards
sustainability• Our water and energy
consumption per room
as well as GHG emissions
per room decreased since
2018• All our hotels in the
Benelux are certified with
Green Key “gold”• 240,000 meals donated in
Israel in 2019
The principle of sustainability is to meet theneeds of the current generation without
endangering the future generation, and isapplied to an ever-increasing extent in ourhotel group. We are committed to do what
we can to take part in this endeavor, and haveinstilled diverse approaches in every region.
In the UK and Ireland we have developed
an environmental policy that includes
aspects of energy conservation, waste
reduction, conversion to environmentally36

friendly chemicals and reduction of water
consumption. As part of our environmental
conservation efforts, our hotels haveindividually become members of the Green
Tourism Business Scheme, a commitment tosound environmental practices that grades
our hotels against a rigorous set of 145 criteria,
covering a range of areas, including energy
and water efficiency, waste management,purchasing, travel, biodiversity, usage of
locally sourced food, recycling, environmental
awareness of our employees and more. All ourhotels in the Benelux are certified with Green
Key “gold” - leading standard for excellence inthe field of environmental responsibility andsustainable operation within the tourism.
In Central Europe, as part of the green
procurement policy, we are purchasing ourmaterials from environmental and social
licensed suppliers and continue to look formore opportunities to develop our green
procurements. As a part of this, we serve
our own line of coffee, Café Intencion, which
has been awarded the fair trade label. Thislabel guarantees direct trade with partnerorganizations and fair prices for small-scale
farmers in the countries where the coffee isgrown.
Our company wide efforts are shown in to
Israel through offering our guests the optionof turning down the service of cleaning linens
during the stay, as to save water and energy.
We also cooperate with the local Government
in their initiatives for energy reduction andefficiency, which includes a grant that isawarded to companies that take part in
the process of selecting more sustainablesuppliers and changing equipment in the
hotels to more efficient ones.

Sustainability Report 2019-2020

EnergyWe aim to operate our hotels by maximizing
energy efficiency without affecting the qualityof our services. We always identify energy
saving opportunities through optimizing theoperational efficiency of our equipment, andupgrading them to the latest technology when
there is a major refurbishment. Additionally,
we also take energy use into consideration
during the design process of our hotels, forexample hotels like NYX Herzliya reduceenergy consumption by maximizing the use ofnatural light.
We know that having accommodations whichcurb electric usage can make a huge differenceon our environment, so it is important to us to
implement energy saving processes acrossall of our hotels. Our proactive measures toreduce energy consumption include checking
insulation, automatic lights using motion
sensors or lights turned off by the use of roomkeys, educating staff on energy usage, andregular electricity checks.
Energy Consumption per Room
9050
8050

8596

7794

7050
6050

Actions to support our ongoing efforts inenergy efficiency:• Lighting replacements and improvements:
Lighting technologies continue to improve,
becoming more efficient. Large-scale
lighting retrofits are often tied to otherrenovation projects, as well as to advancesin lighting technology.
• Building automation systems: Fattal
continues to incorporate and integratebuilding automation systems and otherautomated controls to increase theefficiency of the buildings we manage. We
also install smart, integrated occupancy
thermostat systems that interlock withentry doors and the property management
systems to deliver agile temperature setback
efficiency without impacting guest comfort
and preference.
• Gearing up for the future of transportation:
Fattal recognizes that in future of travel iselectric and is rapidly preparing its hotels
across Israel with charging stations forelectric vehicles. In just a few years Fattal
now has charging stations at 90% of its
Israel hotels with a total of 45 stations. It
plans to continue to build out its electric car
infrastructure to accommodate this exciting
future in Israel and across the global Fattal
network in years to come.
• Energy facilities: We hire experts in the
sector of energy and cooling to analyse theperformance and efficiency of our chillers
and heat pumps and to upgrade our energy
facilities accordingly.

5050
4050
3050
2050
1050
50
Energy Consumption (KWH)
2018
2019
7 The data in this chapter for energy, waste and water are not listed

for 2020 as this information is not an accurate usage portrayal due
to Covid-19.

• Source of energy: We upgraded most of ourhotels to a more green method of heatingwater. It provides us with an automation
system that uses different energy sources
depending on the time of the day withpreference to cost saving and efficiency ofthe energy facility.
37• Reduction of electricity consumption: We
have installed in most of our hotels in Israel,
devices that are connected to our electricity
distribution boards, and adjusting ourpower voltage ON-LINE. This helps us toreduce our electricity consumptions by
10%-14% for every KWH that is used by the
distribution board.

Waste
Being in the business of hospitality, we areaware that hotels generate a large amountof waste. We have increasingly become
concerned with reducing the amount of waste
sent to landfills and have been implementing
waste minimization initiatives.
Across our operations we sort our waste toincrease recycling and divert from the landfill.
In the UK and Isreland we have taken additional
steps separating not only recyclables, but alsoorganic waste, cardboard, glass, batteries,
fluorescent and long life bulbs, paper, andhave a target to divert 80% of our waste fromlandfill to recycling and composting by 2020.
In Israel, we have many waste initiatives thatstart in our kitchen. We recycle oils that arethen sent to a local company that converts it
into biodiesel, compost or fertilizer.
Non-hazardous Waste per Room
250

200

150

100

50
Non-hazardous waste (KG)
2018
2019

38

In Central Europe and Benelux, we are working
to reduce consumption, especially focusing
on products that consist of a lot of packaging,as well as partnering with “Too good to go”, aleading food waste app that allows locals to buy
surplus food that would otherwise be thrownout in order to avoid large amounts of foodwaste. Our hotels are using less paper-articles
and have changed our cleaning products to
ECO-label. For many years the Fattal hotels
in Israel have been working closely with Leket
Israel, the leading food rescue organization
focused on rescuing healthy surplus food anddelivering to the people facing food insecurity.
Israel The organization collects cooked meals
from 10 hotels of the chain. During 2019 weaveraged about 240,000 meals a year. Fattal
hotels also work with Latet Israel, the largest
non-government organization combating
poverty and food insecurity in Israel. The
organization operates the leading national
food bank and runs impactful aid programs,
providing monthly assistance to 60,000
families and 1,000 Holocaust survivors. Hotels
in Central Europe donates meals to food banks
as well as supports soup kitchens.

Water
With the knowledge that hotel operations
heavily rely on water for hygiene and cooking
purposes, we are committed to reducing
our water footprint through operational
efficiency, engaging customers and raising
staff awareness.
We take a variety of steps to minimize are water
use where possible including procedures
such as avoidance of dangerous chemicals
in cleaning products, waste water recycling
along with re-use of wastewater for watering
hotel landscaping, and housekeeping rules
which encourage less frequent laundering atguests discretion. Additionally, preforming
periodic checks for leaks is also important

Sustainability Report 2019-2020

as leaks can quickly add up to a big impact.
Other steps like reducing the operation of air
condition systems to save energy offer the
extra benefit of reducing water consumption
as well. Together all these initiatives add up totangible water usage reductions. and allow.
Water Usage per Room

GHG Emissions per Room
60
50

58
53

40
30
20

100
94

95

10
88.66

90

0

85

GHG emissions (CO2 equivalent tons)
2018
2020

80
75
70
65
60
55
50
Water Usage (Cubic meter)
2018
2019

Emissions
Carbon Dioxide is an inevitable output of theway we all live today, and especially in thehospitality sector. The reduction of carbon
dioxide is one of our key objectives for the
coming years.
At Fattal, we understand that hotels can reduce
their environmental footprint through the
integration of more efficient equipment, closemonitoring and transitioning to renewableenergy. In keeping with our corporate policyof continuous improvement, our hotels arecommitted to reducing energy consumption
and associated greenhouse gas emissions, inparticularly CO2.

In Central Europe, we are reducing the use of
products, which produce high CO2 emissions
by decreasing plastic articles as much as
possible. We will no longer supply small tubes
and use large dispensers instead, as well asbanning all plastic straws and individuallyplastic packaged food items that are usedin the dining areas. In addition, employees
uniforms will be produced from recycledmaterials.
We are planning to work with suppliers
who have good environmental policies
to reduce packaging waste and improvethe environmental impact of all products
purchased. We are also committed toencouraging the participation and educationof associates and guests in sustainablebusiness best practices and support positive
action in the community where possible.

39

ABOUT THIS REPORTThis is Fattal’s First CSR (Corporate Social Responsibility) Report, and contains an overview
of our corporate social responsibility (CSR) projects and activities during 2019-2020 and
performance during fiscal year 2019, whose period is from January 1st 2019 to December 31st
2019. Performance during 2020 is reflected in the report as well but due to the pandemic thedata is collected only for the 3 month of activity, when the hotels were open. In this report, weshare the challenges and successes we faced over the past years in our company’s sustainability
journey.
In the scope of this report, we have included hotels from the main operation regions: Israel,
Central Europe, UK & Ireland, Benelux and the Mediterranean basin. Please consult the appendix
to see the full list of hotels included in the scope of this report. That represents more than 85%
of operation of the company. The report covers properties in full operation in the regions of
UK &Ireland, Israel and Central Europe, under the management of the Fattal Group, during thereporting period unless otherwise indicated. Quantitative data and qualitative information
cover all our direct business activities unless otherwise indicated.
This report is written according to the Global Reporting Initiative (GRI) SRS Guidelines – Core
Level.
To normalize and standardize the calculations made in the chapter “Caring for our Environment”
we used the yearly amount of room numbers.
2016

2017

2018

2019

2020

UK and Ireland

512

8997

9757

11,40011,890Central Europe

9786

14,83917,41917,041

16,558Israel7829

9087

12,158

9052

9142

Total

18,12732,92336,75840,13540,232Going forward, we plan reporting on CSR performance annually, providing clear and easily
comparable data on our performance, and actively encouraging discussion about how we canmake improvements over time.

40

Sustainability Report 2019-2020

Statement from Good Vision
Good Vision – CSR Consulting Firm, of the Fahn Kanne & Co. Grant Thornton Group, supported
Fattal with the report. We are a member of the GRI Community and support the mission of GRI
to empower decision makers everywhere, through GRI Sustainability Reporting Standards andits multi-stakeholder network, to take action towards a more sustainable economy and world.

Contact us
If you have any questions or comments about this report, please contact:
Eran Tubul
Human Resources Manager at Fattal Hotels
EranTu@fattal.co.il

Ivri Verbin
CEO of Good Vision – CSR consulting firmIvri.Verbin@goodvision.co.il
Valentina Yakhnina
Sustainability Services Advisor at Good Vision– CSR consulting firm
Valentina.Yakhnina@goodvision.co.il

41

GRI INDEXCore option
GRI 2016
General Disclosures
GRI Standard

Disclosure

Page Number/Direct Answer

102-1

Name of organization

Fattal Holdings Ltd (Fattal Hotel Group)

102-2

Activities, brands, products, and services

See About Us, P. 8-10

102-3

Location of headquarters

Tel Aviv, Israel

102-4

Location of operations

See Appendix, P. 46 - 50

102-5

Ownership and legal form

Fattal is a publicly traded company
incorporated in Israel

102-6Markets served

See About Us, P. 8-10

102-7

Scale of the organization

See Appendix, P. 51

102-8

Information on employees and otherworkers

See Nurturing our Employees, P. 24 – 31
See Appendix – Employees, P. 52 - 54

102-14

Statement from senior decision-makerSee Dear Reader, P. 3 – 4

102-15??

Key Impacts, risks and opportunities

See About Us, P.8 – 11
See a Note on Covid-19, P.6
See Annual Report102-16

Values, principles, standards, and norms of See About Us, P.8 - 11
behavior

102-18Governance structure

See Our Management Team, P. 12 – 13
See Ethics and Corporate Governance, P.
14-15

102-22Composition of the highest governancebody and its committees

See Our Management Team, P. 12 – 13
See Ethics and Corporate Governance, P.
14-15
See Management102-40

List of stakeholder groups

See About Us, P. 8-10

102-43

Approach to stakeholder engagement

See Ethics and Corporate Governance, P. 15

102-46

Defining report content and topic
Boundaries

See About the Report, P. 40

102-47

List of material topics

See About Us, P. 8 -11

102-50

Reporting period

2019-2020

102-52

Reporting cycle

Bi-Annual102-53

Contact point for questions regarding thereportSee Contact Us, P. 41

42

Sustainability Report 2019-2020

102-54Claims of reporting in accordance with the
GRI standards

See About this Report, P. 40 – 41
See GRI Index, P.42 - 43

102-55

GRI content index

See GRI Index, P.42 - 43

302-1

Energy consumption within theorganization

See Caring for our Environment, P. 37
See Appendix – Environment, P.55 - 56

302-4

Reduction of energy consumption

See Caring for our Environment, P. 37
See Appendix – Environment, P.55 - 56

305-1

GHG Emissions

See Caring for our Environment, P. 39
See Appendix – Environment, P.55 - 56

401-1

New employee hires and employee
turnoverSee Appendix – Employees, P. 52 - 54

403-2

Types of injury and rates of injury,
occupational diseases, lost days, andabsenteeism, and number of work-related
fatalities

See Occupational Injuries, P. 54

404-1

Average hours of training per year per
employee

See Nurturing our Employees, P. 24

404-2

Programs for upgrading employee skills
and transition assistance programs

See Nurturing our Employees – Learningand Development, P. 28 - 31

405-1

Diversity of governance bodies andemployees

See Appendix – Employees, P.53 - 54

405-2

Ration of basic salary and remuneration of See Appendix – Employees, P.53 - 54
women to men

413-1

Operations with local community
engagement, impact assessments, anddevelopment programs

See Making a Difference in our
Communities, P.32 - 35

418-1

Substantiated complaints concerning
breaches of customer
privacy and losses of customer data

See Caring for our guest's safety andprivacy, P.22

43

SASB
Hotel & Lodging Standards
SAB Standard

Disclosure

Page Number/Direct Answer

SV-HL-130a.1(1) Total energy consumed, (2) percentage gridelectricity, (3) percentage renewable

See Appendix – Environment, , P.
55 - 58

SV-HL-140a.1(1) Total water withdrawn, (2) total water
consumed, percentage of each in regions withHigh or Extremely High Baseline Water Stress

See Appendix – Environment, P. 55- 58

SV-HL-160a.1

Number of lodging facilities located in or nearareas of protected conservation status orendangered species habitatn/a

SV-HL-160a.2

Description of environmental management
policies and practices to preserve ecosystemservices

See Chapter 'Caring for Our
Environment', P.36 - 39

SV-HL-310a.1(1) Voluntary and (2) involuntary turnover rate for Total Turnover 2019: 26.7%
lodging facility employees
Total Turnover 2020: 25.5%

SV-HL-310a.2

Total amount of monetary losses as a result oflegal proceedings associated with labor law
violations2Israel and UK & Ireland Region had
zero monetary losses from legal
proceedings in 2019 and 2020. Data
not available for Central Europe andBenelux.

SV-HL-310a.3(1) Average hourly wage and (2) percentage of
lodging facility employees earning minimum
wage, by region

See Financial Wellbeing, P. 27

SV-HL-310a.4

Description of policies and programs toprevent worker harassment

See Diverse Employees, P. 25-26

SV-HL-450a.1

Number of lodging facilities located in 100- year
flood zones

n/aRestaurants Standard
FB-RN-250a.1% kitchens inspected by food safety oversightthat received critical violations

2019 & 2020: 0% (Israel and UK &Ireland region)
Central Europe and Benelux data isn/a

FB-RN-250a.3# confirmed foodborne illness outbreakassociated with restaurant2019 & 2020: 0 (Israel, Central
Europe, UK & Ireland region)
Benelux data is n/a44Sustainability Report 2019-2020

45

APPENDIX
Hotels included in the scope
MunichGermany

Leonardo Hotel Munich City Center

BerlinGermany

Spreewald Inn

BerlinGermany

Leonardo Airport Hotel Berlin-Brandenburg

Heidelberg

Germany

Leonardo Hotel Heidelberg City Center

MunichGermany

Leonardo Hotel & Residenz Munich

MunichGermany

Leonardo Hotel Munich City West

MunichGermany

Leonardo Royal Hotel Munich

MunichGermany

Leonardo Hotel Munich City Olympia Park

MunichGermany

Leonardo Hotel Munich City North

Hamburg

Germany

Leonardo Hotel Hamburg Airport

Hamburg

Germany

Leonardo Inn Hotel Hamburg Airport

Nuremberg

Germany

Leonardo Hotel Nuremberg

Frankfurt

Germany

Leonardo Hotel Frankfurt City

BerlinGermany

Leonardo Hotel Berlin City Süd

Mannheim

Germany

Leonardo Hotel Mannheim-Ladenburg

WeimarGermany

Leonardo Hotel Weimar

Hamburg

Germany

Leonardo Hotel Hamburg Stillhorn

DresdenGermany

Leonardo Hotel Dresden Altstadt

Koln

Germany

Leonardo Hotel Koln

BerlinGermany

Leonardo Royal Hotel Berlin Alexanderplatz (management
only)

Barcelona

Spain

Leonardo Hotel Barcelona Las Ramblas

Milan

Italy

Leonardo Hotel Milan City Center

Zurich

Switzerland

Leonardo Boutique Hotel Rigihof Zurich

MadridSpain

Leonardo Hotel Madrid City Center

MadridSpain

Leonardo Boutique Hotel Madrid

MadridSpain

Hotel Gran Atlanta Madrid

Karlsruhe

Germany

Leonardo Hotel Karlsruhe

AachenGermany

Leonardo Hotel Aachen

Koln

Germany

Leonardo Royal Hotel Koln am Stadtwald

Dusseldorf

Germany

Leonardo Hotel Dusseldorf City Center46

Sustainability Report 2019-2020

Frankfurt

Germany

Holiday Inn Frankfurt Airport - North

Dusseldorf

Germany

Holiday Inn Dusseldorf Airport Ratingen

Mannheim

Germany

Leonardo Hotel Mannheim City Centre

Baden-Baden

Germany

Leonardo Royal Hotel Baden-Baden

Koln

Germany

Leonardo Hotel Cologne Bonn Airport

Dusseldorf

Germany

Leonardo Royal Hotel Dusseldorf - Konigsallee

Hannover

Germany

Leonardo Hotel Hanover Airport

Heidelberg

Germany

Leonardo Hotel Heidelberg-Walldorf

Wolfsburg

Germany

Leonardo Hotel Wolfsburg City Center

Hamburg

Germany

Leonardo Hotel Hamburg City North

Hannover

Germany

Leonardo Hotel HannoverFrankfurt

Germany

Leonardo Royal Hotel Frankfurt

Heidelberg

Germany

Leonardo Hotel Heidelberg

Monchengladbach

Germany

Leonardo Hotel Monchengladbach

BerlinGermany

Leonardo Hotel Berlin

MunichGermany

Leonardo Boutique Hotel Munich

BerlinGermany

Leonardo Mitte Berlin

Mannheim

Germany

Leonardo Royal Hotel Mannheim

Volklingen

Germany

Leonardo Hotel Volklingen

MunichGermany

Leonardo Hotel Munich Arabellapark

BerlinGermany

Leonardo Hotel Berlin City West

MunichGermany

Leonardo Hotel Munich City SouthCharleroi

Belgium

Leonardo Hotel Charleroi City

Antwerp

Belgium

Leonardo Hotel Antwerp

Budapest

Hungary

Leonardo Hotel Budapest

ViennaAustria

Leonardo Hotel Vienna

Zurich

Switzerland

Alden Suite Hotel Splugenschloss Zürich

Barcelona

Spain

Leonardo Boutique Hotel Sagrada Familia

Amsterdam

Netherlands

Leonardo Hotel Amsterdam City Center

PragueCzech

NYX Prague

Warsaw

PolandLeonardo Royal Hotel Warsaw

Milan

Italy

NYX Hotel Milan

MunichGermany

Leonardo Hotel Munich City East

Dusseldorf

Germany

Savoy Hotel Düsseldorf

47

Granada

Spain

Leonardo Hotel Granada

PragueCzech

Jurys Inn Prague

Hamburg

Germany

Leonardo Hotel Hamburg Elbbrücken

Ulm

Germany

Leonardo Royal Hotel Ulm

RhinelandPalatinate

Germany

Leonardo Hotel Bad Kreuznach

MunichGermany

NYX Hotel Munich

Mannheim

Germany

Whindham Mannheim

Barcelona

Spain

Leonardo Hotel Barcelona Gran Via

The Hague

Netherlands

Crowne Plaza The Hague

Lelystad

Netherlands

Apollo Lelystad

AlmereNetherlands

Apollo Almere

BeyaerdNetherlands

Apollo De Beyaerd

Amsterdam

Netherlands

Apollo Amsterdam

Amsterdam

Netherlands

Apollo Museum

Vinkeveen

Netherlands

Apollo Vinkeveen

Amsterdam

Netherlands

Ramada Apollo

Utrecht

Netherlands

Apollo Utrecht

Groningen

Netherlands

Apollo Groningen

Breda

Netherlands

Apollo Breda

Papendrecht

Netherlands

Apollo Papendrecht

LjmuidenNetherlands

Apollo ljmuiden

Rome

Italy

Venetia Palace Hotel Rome

BilbaoSpain

BilbaoVenice

Italy

Leonardo Hotel Venice Mestre

BelfastIreland North

Jurys Inn Belfast

Birmingham

EnglandJurys Inn Birmingham

Bradford

EnglandJurys Inn Bradford

Brighton
Waterfront

EnglandJurys Inn Brighton Waterfront

Cardiff

Wales

Jurys Inn Cardiff

Cheltenham

EnglandJurys Inn Cheltenham

East Midlands

EnglandJurys Inn East Midlands Airport

Glasgow

ScotlandJurys Inn Glasgow

Hinckley Island

EnglandJurys Inn Hinckley Island

48

Sustainability Report 2019-2020

Inverness

ScotlandJurys Inn Inverness

Leeds

EnglandJurys Inn Leeds

LondonEnglandJurys Inn Croydon

Manchester

EnglandJurys Inn Manchester

MiddlesbroughEnglandJurys Inn MiddlesbroughOxfordEnglandJurys Inn Oxford

Sheffield

EnglandJurys Inn Sheffield

SwindonEnglandJurys Inn Swindon

Aberdeen

ScotlandJurys Inn Aberdeen

Aberdeen

ScotlandJurys Inn Aberdeen Airport

Brighton

EnglandJurys Inn Brighton

Derby

EnglandJurys Inn Derby

Edinburgh

ScotlandJurys Inn Edinburgh

ExeterEnglandJurys Inn Exeter

Gateshead

EnglandJurys Inn Gateshead

Liverpool

EnglandJurys Inn Liverpool

Milton Keynes

EnglandJurys Inn Milton Keynes

Newcastle

EnglandJurys Inn Newcastle

Nottingham

EnglandJurys Inn Nottingham

PlymouthEnglandJurys Inn PlymouthSouthampton

EnglandJurys Inn Southampton

WatfordEnglandJurys Inn Watford

Cork

IrelandJurys Inn Cork

Christchurch

IrelandJurys Inn Christchurch

GalwayIrelandJurys Inn Galway

Parnell

IrelandJurys Inn Parnell

Edinburgh

ScotlandLeonardo Royal Hotel Edinburgh

LondonEngland

Leonardo Hotel London Heathrow Airport

Aberdeen

ScotlandLeonardo Hotel Aberdeen Airport

Edinburgh

ScotlandLeonardo Hotel Edinburgh Capital

Edinburgh

ScotlandLeonardo Hotel Edinburgh City Centre

Glasgow

ScotlandLeonardo Hotel Glasgow West End

Perth

ScotlandLeonardo Hotel Perth Huntingtower

Southampton

England

Southampton

49

Manchester

England

The Midland Hotel

LondonEnglandGrange St. Paul’s Hotel

LondonEnglandGrange City Hotel

LondonEnglandGrange Holborn Hotel

LondonEnglandTower Bridge Hotel

Tel Aviv

IsraelLeoenardo Beach Tel Aviv

Tel Aviv

IsraelLeonardo Boutique Tel Aviv

Tel Aviv

IsraelLeonardo City Tower

Tel Aviv

IsraelHerods Tel Aviv

Rehovot

IsraelLeonardo Boutique Rehovot

Herzeliya

IsraelHerods Herzeliya

Tel Aviv

IsraelLeonardo Art

Tel Aviv

IsraelRotschild 22

Tel Aviv

IsraelNYX Tel Aviv

Herzeliya

IsraelNYX Herzeliya

Tel Aviv

IsraelBachar House

Dead Sea

IsraelLeonardo Club Dead Sea

Dead Sea

IsraelHerods Dead Sea

Dead Sea

IsraelLeonardo Plaza Dead Sea

Dead Sea

IsraelLeonardo Inn Dead Sea

Eilat

IsraelLeonardo Club Eilat

Eilat

IsraelLeonardo Privilege

Eilat

IsraelLeonardo Royal Resort

Eilat

IsraelHerods Palace

Eilat

IsraelHerods Vitalis

Eilat

IsraelHerods Boutique

Eilat

IsraelLeonardo Plaza Eilat

Eilat

IsraelU Coral Beach

Eilat

IsraelU Magic Palace

Eilat

IsraelU Splash Resort

Ashkelon

IsraelLeonardo Ashkelon

NetanyaIsraelLeonardo Plaza Netanya

Jerusalem

IsraelLeonardo Jerusalem

Jerusalem

IsraelLeonardo Plaza Jerusalem

50Sustainability Report 2019-2020

Beersheba

IsraelLeonardo Negev

AshdodIsraelLeonardo Plaza Ashdod

Jerusalem

IsraelLeonardo Boutique Jerusalem

Tiberius

IsraelLeonardo Club Tiberius

Tiberius

IsraelLeonardo Plaza Tiberius

Tiberius

IsraelLeonardo Tiberius

Haifa

IsraelLeonardo Haifa

Tiberius

IsraelU Boutique Kinneret

Number of Hotels

Total number of Rooms

2019

2020

2019

2020

Israel

47

48

9,052

9,142

Central Europe

93

92

17,041

16,558

Uk & Ireland

51

53

11,40011,890Benelux

16

16

2,642

2,642

Total

207

209

40,13540,23251

EMPLOYEES
Collective Agreement
All of our employees in Central Europe have personal contracts under the applicable employment
law of each country of operation. Regions in which collective agreements are required we fullycomply, and replaces employment law (which we follow). In countries such as Spain, Hungary
and Germany collective agreements are not mandatory, and the conditions in the collective
agreements are reflected in a different payment system we offer our employees. 100% of ouremployees in Israel are employed under collective agreements.

Number of Employees

Age Range

2018

2019

2020

10,911

19,677

13,638Percentage of% male employees
employees from theentire company% female
employees

Up to 29

41.7%

28.9%

12.8%

30-34

11.7%

8%

3.7%

35-44

19.3%

12.9%

6.3%

45-54

13.9%

8.9%

5%

55-66

9.2%

6.1%

0.3%

67-74

1.4%

1.1%

0.3%

75+

0.2%

0.2%

0.03%

66.1%

28.43%

Total

Employee Turnover Rate
Employee turnover %

52

2018

2019

2020

Total

Total

Total

37.45

26.7

25.5

Sustainability Report 2019-2020

Employee Training

2018

2019

2020

Training Hours per Employee

38.6

25.7

NA (COVID-19)

Total Training Hours

409,680

376,773

NA (COVID-19)

Total Cost of Training

1,208,916$6,440,400

NA (COVID-19)

UK & Ireland

Central Europe

Diversity of
employees

Israel
2019

2020

2019

2020

2019

2020

2019

2020

# women in workforce

4301

2885

1973

1421

n/a

n/a

n/a

n/a

% women in theworkforce

33.00% 34.00% 51.76% 50.68%

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

48.30% 46.10%

Benelux% women management

n/a

n/a

# disabled workforce

96

n/a

130

n/a

46

44

n/a

3

# minority* workforce

26%

28%

n/a

n/a

n/a

n/a

n/a

n/a

Pay Gap
Central Europe

2018

2019

2020

Number of employees by gender? (M/f)

1.700/1.068

1.574/989

1.431/899

Paygap for women employees in general-57,85 € brut/month- 74,93 € brut/month-88,00 € brut/month

Paygap for women mid managerial employees-154,31€ brut/month-134,39€ brut/month-134,39€ brut/month

Paygap for women top management employees -499,26 € brut/month-420,16 € brut/month-420,16 € brut/
month

53

UK Data

2019

2020

Number of employees by gender? (M/f)

1383 Male / 1451 Female 1489 Male / 1585 Female

Paygap for women employees in general

8.9% Mean, 2% median

7.1% Mean, 2% median

Paygap for women mid managerial employees

8.8% Mean, 1% median

0% Mean, 0% Median

Paygap for women top management employees 8.6% Mean, -7% Median(in favour of Females)

9% Mean, -4% Median(in favour of Females)

Benelux

2020

Number of employees by gender? (M/f)

50-50 Benelux

Paygap for women employees in general-5% for women

Paygap for women mid managerial employees-3% for Woman

Paygap for women top management employees+5% for women
4% average pay gap infavor of men

Occupational Injuries
In Israel, UK and Ireland there was a total of one fatality a year in the period between 2018 and2020. This underlined the importance of our work with employee safety and health to help
prevent these fatalities.

54

Sustainability Report 2019-2020

Environment
units ofmeasure

2018

2019

2020

Indicator GRI

Total Energy
Consumption

KWh315,981,855

312,827,843

173,288,586

302-1, bloomberg

Electricity Used

KWh

314,034,585

310,588,929

171,923,593

bloomberg

Energy Energy
intensity
intensity ratio

KWh12542.44653

12417.25253

6878.441849

302-3

The metricchosen to
calculate
the ratio

Number
of
rooms

25193

25193

25193

Types ofenergyincluded in
the ratio

KWh

Electricity + FuelElectricity + FuelElectricity + Fuel

2

EnergyKWhreduction of energy
consumption

302-3

KWh

20,195,828

3,154,013

139,539,257

302-4

Emissionsunits ofmeasure

2018

2019

2020

Indicator GRI

GHG Scope 1 - LPG
GAS

co2equivalent
tons

3,825,206

4,420,908

3,743,703

305-1, bloomberg

GHG Scope 2 Electricity

co2
equivalent
tons

2,163,075

2,139,341

1,184,212

305-2, bloomberg

Total GHG
Emissionsco2
equivalent
tons

5,988,280

6,560,250

3,909,198

bloomberg

GHG emission
intensity ratio

co2
equivalent
tons

238

260

155

305-4

140,307-23,734-955,129

305-5

0

0

0

3

emission
reduction GHG
reduced as aco2
direct result of equivalentof GHG
organization's
tons
emission initiatives

scope inco2
which theequivalent
reductiontons
took place

Total energy consumption - is the Summary of Electricity and Fuel consumption combined.
As well as energy intensity ratio.
3
The calculation shown is by this Formula - 1 kwh = 0.0068880144 CO2
255

Fuel consumption for internal units ofmeasurehotel use

2018

2019

2020

Indicator GRI
302-1

Gasoline

Liter

0

0

0

LPG - GAS

Kg

1,328,877

1,504,873

887,468

Diesel fuelLiter

618,393734,041

477,524

Total

Liter

1,947,270

2,238,914

1,364,992

Cars

units ofmeasure

2018

2019

2020

Indicator GRI

GasolineUnit

288,213.33

303,382.45

91,014.74

302-1

Diesel fuel

Unit

0.00

0.00

0.00

Hybrid

Unit

0.00

0.00

0.00

Total

Unit

288,213.33

303,382.45

91,014.74

units ofmeasure

2018

2019

2020

Indicator GRI

Total Waste

1 TON

9587.6098

10,546.37

3,163.91

Hazardous Waste Total Hazardous
Waste

306-2,
bloomberg

1 TON

0

0

0

oil

1 TON

0

0

0

electronic devices

1 TON

0

0

0

cleaning products

1 TON

0

0

0

other

1 TON

0

0

0

Total NonHazardous Waste

1 TON

9587.6098

10,546.37

3,163.91

solid waste

1 TON

7876.925

8,664.62

2,599.39

paper

1 TON

353.49388.84116.65plastic

1 TON

0

0.00

0.00

food waste

1 TON

1357.1948

1,492.91

447.87other: glass

1 TON

0

0.00

0.00

Waste amount by type

Non-Hazardous
Waste

56

Sustainability Report 2019-2020

Disposal method by waste
type

units ofmeasure

2018

2019

2020

Indicator GRI

Landfill
waste

Total landfill waste

1 TON

9587.6098

10,546.37

3,163.91

306-2, bloomberg

Hazardous Waste

1 TON

0

0

0

Non-Hazardous Waste

1 TON

9587.6098

10,546.37

3,163.91

Total recycled waste

1 TON

353.49388.84116.65

Hazardous
Waste

total

1 TON

0

0

0

oil

1 TON

36276

39,903.60

11,971.08

totalelectronic
devices

1 TON

0

0

0

PhonesRecycled

1 TON

0

0

0

other: __

1 TON

0

0

0

total

1 TON

353.49388.84116.65plastic

1 TON

0

0

0

paper

1 TON

353.49388.840other: Food
/ Compost

1 TON

0

0

0

other: Glass

1 TON

0

0

0

total reused waste

1 TON

0

0

0

Hazardous
Wasteother: __

1 TON

0

0

0

other: __

1 TON

0

0

0

other: __

1 TON

0

0

0

other: __

1 TON

0

0

0

Recycled
waste

NonHazardous
Waste

Reusedwaste

NonHazardous
Waste

57

units ofmeasure

2018

2019

2020

Indicator GRI

Total Water Use

cubic
meter

3483659

35586961843580.85

Hazardous Waste surface water(rivers, oceans
etc.)301-1,
bloomberg

cubic
meter

0

0

0

ground water

cubic
meter

0

0

0

rainwater collectedby the organization

cubic
meter

0

0

0

waste waterfrom anotherorganization

cubic
meter

0

0

0

municipal watersupplies or otherwater utilities

cubic
meter

3483659

3,558,696

1,843,581

Water

58

Sustainability Report 2019-2020

59

ASSURANCE STATEMENT FOR FATTAL
Introduction
BDO Ziv Haft Consulting and Management is a business-oriented accounting and consulting firm.
Founded in 1983, it is ranked among the top three CPA firms in Israel. Our ESG (Environmental,
Social and Governance) team offers our clients a variety of services in the sustainability,
CSR (Corporate Social Responsibility) and the ESG field, according to their needs, goals andpreparedness.
BDO performed the assurance of Fattal’s 2019-2020 Sustainability Report (“Report”) incompliance with the AccountAbility AA1000AS v3 standard, Type 1 Moderate level, as a licensed
assurance provider. The assurance process was conducted professionally, impartially andindependently, based on information provided by Fattal.
This assurance is intended for all of Fattal’s stakeholders which include: employees, guests,
NGOs, international organizations, investors, owners, suppliers, and local communities,
governments and businesses.

Methodology
In order to render our opinion, the assurance methodology comprised of a comprehensive
review and assessment of the organization’s adherence to the AccountAbility AA1000 Principles,in accordance with the Type 1 assurance requirements. This was established via examination of
the Report manuscript and the collection and analysis of several sample data documents.

Limitations
This moderate assurance engagement relies on a risk-based sample of sustainability data andthe associated limitations that this process entails. This independent statement should not be
relied upon to detect all errors, omissions or misstatements that may exist within the Report.
Towards the end of the process, a detailed account was provided to the company, comprised of
the assurance process’s detailed assessment and recommendations, which is presented in thefollowing.

Conclusions
This being Fattal’s first Sustainability Report and given their operations in light of the challenges
posed during the COVID-19 pandemic, the Report is significant as it details the company’s
actions and devotedness to corporate social responsibility and sustainability.

60

Sustainability Report 2019-2020

Based on the methodology and activities performed within the scope of this assessment, andbased on the presented materials, we determine that Fattal’s Sustainability Report for 20192020 is compatible with AccountAbility’s reporting requirements. A summary of our conclusions
is as follows:
1. Inclusivity: Stakeholders were properly identified, and their engagement was appropriately
assessed.
2. Materiality: Relevant material sustainability topics were examined as ones that influenceand impact Fattal’s assessments, decisions, actions and performance of for the various
stakeholders, and their presentation was clear.
3. Responsiveness: Fattal reacted to the material topics in a timely manner.
4. Impact: Fattal’s performance, behavior and outcome metrics adhere to the moderate level of
AccountAbility reporting standards.

Recommendations
In order to further improve the Report, by introducing a more extensive and expansive one in the
coming years, the following is a list of subjects we recommend that the organization expands on
and/or considers including in future reporting, organized by importance:• Set future goals and measurable targets as part of a sustainability strategy built of the material
topics detailed in the report;• Elaborate upon climate change concerns and the extent of Fattal’s efforts to combat it, in aprominent section of the Report;• Increase reporting and data coverage to include all operations;• Provide further information on waste by collecting quantitative data on recycling of nonhazardous waste (beyond paper and food), and of hazardous waste (beyond oil);• Collect and provide information on employee injuries;• Detail Fattal’s implementation of the United Nations Sustainable Development Goals
throughout the report;• Supply information regarding Scope 3 emissions.

Ziv Haft Consulting and Management
Certified Public Accountants
Tel Aviv6162