Dan Hotels has rented 90 two-room apartments in a 200-apartment project Almog BZ Construction & Investments will build in downtown Eilat. Dan Hotels will pay $670 per apartment per month, dollar-linked, in a ten-year lease, plus $75 per apartment in maintenance fees, under the same terms. Dan Hotels will pay $8 million over the entire lease period, in one of the largest rent deals in years.
The apartments are intended for employees in the Dan Eilat and Dan Panorama hotels in the town. There is a shortage of rental apartments in Eilat, and three and four-room apartments can lease for up to $1,000 a month.
Almog will begin construction in May on a ten-dunam (2.5-acre) plot it earlier bought from the Israel Land Administration for $3 million, including development. Almog will build five 5-8-storey buildings. 100 apartment are intended to be leased.
Almog has already sold 20 of the 100 apartments intended for sale. Furnished two-room apartments were sold for $90,000 each, and three-room apartments for $130,000 each.
Almog is investing $11 million in the project. The Bank of Jerusalem is providing financial coverage.
Published by Israel's Business Arena on 24 March 2002