Bank Leumi has asked the Tel Aviv District Court to appoint a receiver for the hotel.
Isrotel Ltd. (TASE: ISRO) has signed lease and management agreement for Eilat's Princess Hotel from its financially troubled owners. Bank Leumi (TASE: LUMI) has asked the Tel Aviv District Court to appoint a receiver for the hotel.
Under the letter of intent, Isrotel promises to pay either a minimum annual rent or percentage of the hotel's turnover, whichever is higher. The 10.5-year lease agreement has two five-year options to extend. The parties will sign a detailed agreement by June 5.
The 40,000-square meter five-star Princess Hotel has 418 rooms and suites. Isrotel manages eight hotels in Eilat and nine more elsewhere in Israel. Its share price was unchanged at NIS 18.40 on the TASE today at NIS 1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2011
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