The Radisson-Moriah Hotel Chain will be sold in a closed local tender, not an international one, at a minimum price of $80 million. The closing date for the list of competitors has been set for November 5, 1998. The deal will be contingent on the purchaser’s having sufficient financial sources to close the deal, and due diligence of the chain, which will done by the purchaser, beginning in mid November. This decision was made by the chain’s shareholders.
The shareholders are: Ampal (46%), Amot (27%), Gmul (20%), and the remaining shares are held by Hevrat Haovdim’s investment fund.
Three proposals have so far been received by the chain: Koor Tourism, for $82.5 million (revalued to $85 million following increments); Radisson-SAS of Europe, together with the Dutch group Camp-Klein, for $86.5 million; and Eli Papouchado, Motty Zisser and Boris Ivesha, for $85 million.
The Radisson-Moriah chain owns or manages eight hotels. Three of them - at the Dead Sea, in Jerusalem and in Tel Aviv are owned by the chain. Two are managed by it, but are owned by others - Radisson-Moriah Plaza in Tel Aviv, owned by the Koren and Liss families and managed under a ten year contract; and a hotel in Tiberias owned by the Israel Corporation and managed under a contract for another two years, with a purchase option to Radisson-Moriah.
Three additional hotels - Ganei Moriah at the Dead Sea, one in Zichron Ya’akov and one in Nazereth - are owned by Mivtahim and are managed under management contracts. Deep differences of opinion exist between the chain and the owners of these hotels.
Published by Israel's Business Arena October 19, 1998