The Israeli-based company has taken on a site on Adair Street, which will be developed in to a 275-room hotel with a bar and restaurant.
It will be operated by Jury’s Inn and join the Leonardo Hotels group, which is owned by Fattal and has over 180 properties in major European cities.
The deal follows a string of UK acquisitions for Fattal, which has bought The Midland – home to the Adam Reid at The French restaurant – and Southampton’s Grand Harbour Hotel for £115m and £29m respectively in the last two months.
Fattal also acquired the Jury’s Inn chain for £800m in partnership with Sweden’s Pandox hotel investment firm last year.
“The opportunity to expand into a vibrant and growing city like Manchester is a great one, and this move serves to strengthen our portfolio and network enormously,” says Jason Carruthers, managing director of Leonardo and Jurys Inn Hotels UK and Ireland.