Dan Hotels Corp. Ltd. (TASE: DANH) plans to build two new hotels on land it owns in Herzliya and Caesarea. The Caesarea hotel will be built on a 40-dunam (10-acre) lot. The Herzliya seaside hotel will be adjacent to the chain’s Acadia Hotel.
In the first stage of the Herzliya project, Dan Hotels plans to build 250 more rooms on what is now the parking lot of the existing hotel. The company may later build an additional hotel on land currently occupied by tennis courts. The Herzliya municipality reportedly supports the plan, since it involves a hotel rather than an apartment building or vacation apartments which have already been built along the city’s seashore.
The Herzliya project will require approval of the coast preservation committee, Valhof, since construction will be within the 300-meter exclusion zone from the waterline. No new hotels have been built in central Israel in recent years. Although there are enough hotel rooms in the area at present, a shortage is expected if projections of increased tourism over the coming years are borne out. Design and construction of the hotel project will take seven years.
Dan Hotels has not yet decided which hotel project to build in Caesarea, because the area is undergoing rezoning and new planning procedures. Dan Hotels will decide on the character and design of the new hotel after its plan is approved, and after the intentions of other landowners in the area become clear.
Early this week, Dan Hotels dedicated the new 42-room wing of the Acadia Hotel in Herzliya, built at a cost of NIS 14 million. The company plans to invest $8 million in renovations this year. Before the 2000-03 intifada, it invested an average of $15 million a year in renovations.
Published by Globes [online], Israel business news - www.globes.co.il - on July 6, 2006
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