Isrotel Ltd. (TASE: ISRO) has bought the Ganei Mivtachim Hotel at the Dead Sea from Mivtachim Ltd. pension fund for NIS 73 million. The 196-room hotel is located at Ein Bokek along the southern basin of the Dead Sea.
Isrotel, controlled by Britain's Lewis family, owns twelve hotels in Israel, including one at the Dead Sea, and the Carmel Forest Spa, which was damaged in the fire earlier this month.
Isrotel won the hotel in a tender held by Amitim Ltd., which manages the eight nationalized old pension funds, including Mivtachim. Ganei Mivtachim Ltd., which owns the hotel, has NIS 19 million in cash, giving the company a value of NIS 92 million. Amitim books the hotel at a value of NIS 51 million, and will report a capital gain of NIS 41 million on the sale.
Isrotel's share price rose 3.1% by midday today to NIS 16.50, giving a market cap of NIS 895 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2010
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