Israel Corp, owner of Jerusalem Sheraton: We have a good agreement with ITT Sheraton. Why change?
The owners of the Tel Aviv Sheraton, the Sheraton Plaza Jerusalem and the Rhodes hotel in Eilat are opposed to transferring the hotels to the management of the Sheraton Israel company, an ITT Sheraton and Koor joint venture.
The agreement establishing Sheraton Israel is scheduled to be signed by January 1, 1997. The memorandum of understanding signed between Sheraton and Koor at the end of August notes the inclusion of existing Sheraton hotels in Israel is subject to the agreement of the hotel owners.
Apparently the hotel owners fear a Koor takeover and a resulting decrease in the hotels’ revenue and profit turnovers, due to the large investments planned by Koor and Sheraton in other hotels.
Deputy CEO of the Israel Corp, Amos Mar-Haim, told "Globes", "Our agreement is with ITT Sheraton. We are paying a high price for the linkage to the international chain and we have no intention of redirecting the agreement towards with Sheraton and Koor. We have an agreement with ITT Sheraton, which has benefited both sides for years. Why change?"