The Hilton international hotel chain will manage the Elad hotel, owned by Yitzhak Tshuva, in Beer Sheba. The hotel is in its final stages of construction and will open by the end of the year.
The agreement for the management of the Beer Sheva hotel was signed today between Yitzhak Tshuva and Oded Lipshitz, general manager of the Hilton chain in Israel, in the presence of Beer Sheva Mayor, Yitzhak Ragar.
According to the agreement, the Hilton chain will receive 3% of turnover and another 10% of net profits. In return, the hotel has been assured of a profit $5 million, after five years, to begin following a first year of grace. Hilton did not give guarantees for assuring the profit payment. The agreement is for 20 years with an option for another 10 years.
Another agreement is to be signed in the next few days between Hilton and Elad Hotels for the management of the Queen of Sheba Hotel in Eilat. The hotel, owned by Elad Hotels (50%) and the Clal Center, Jerusalem (50%), is being built on the north shore of Eilat. According to plans, the hotel will feature 560 rooms.
The Hilton chain today manages the Tel Aviv Hilton and has plans to spread out across the country and increase its number of rooms over the next two years from 600 to 1,800. A Hilton Hotel is scheduled to open in Jerusalem in the summer of ‘97. In ‘98, Hilton hotels are scheduled to open at the Dead Sea and in Haifa. No Hilton exists at present in Eilat. The Beer Sheba Hilton is located in the city center. It was built at an investment of some $36 million. The hotel will be managed as a 4-star hotel and will include 262 rooms.