The sum includes acquisition of an 8% share in the Laromme hotel. The Israel Resort Hotels chain will manage the hotel at the Rimonim site.
Israel Land Development (ILD) is about to acquire a 30% share of the Rimonim project in Jerusalem from the Ben-Giat family, and the Israel Resort Hotels (IRH) chain will manage the hotel to be constructed on the site. In addition, ILD will acquire 8% of the Jerusalem Laromme Hotel, half of the Ben-Giat family holding in the hotel. ILD will pay $12.9 million in consideration for the two acquisitions.
The Rimonim real estate project, on the old Sha’arei Zedek Hospital site, will include preservation of the old hospital’s facade, a new 208-room hotel rated 3-4 stars, and commercial areas.
At this stage, the deal does not include management of the Laromme hotel. However, it is quite possible that all the Laromme’s owners will be interested in IRH managing the hotel.