Elad Hotels, controlled by Yitzhak Tshuva, is about to enter into a cooperation and merger agreement with the Sheraton Moriah Israel chain, top tourism sources at the International Tourism Exchange Berlin 2004 told "Globes". Under the agreement, Elad Hotels will reportedly control the merged company.
Elad Hotels currently owns seven hotels across Israel: the two Paradise Hotels in Eilat; the Queen of Sheba Hilton in Eilat, in partnership with foreign investors; the Sheraton City Tower Hotel in Ramat Gan, in partnership with other investors; the Paradise Hotel in Beer Sheva; the Ein Boqeq Hotel at the Dead Sea; and the Amnon Bay Hotel at the Kinneret.
Sheraton Moriah Israel has seven hotels: two in Jerusalem, two in Eilat, and one each in Tiberias, the Dead Sea, and Tel Aviv.
Koor Industries (NYSE: KOR; TASE:KOR) owns 55% of Sheraton Moriah Israel, Sheraton Holding Corporation's owner Starwood Hotels and Resorts (NYSE:HOT) owns 25%, and Bank Hapoalim (LSE:BKHD; TASE:POLI) 20%. Starwood has exclusive management rights to Sheraton Moriah Israel.
Like most large Israeli hotel chains, Sheraton Moriah Israel has substantial debts to the banks, due to the tourism crisis.
As a private company, Sheraton Moriah Israel does not publish financial results, but its annual turnover is estimated at hundreds of shekels a year.
Sheraton Moriah Israel stated in response, "We have not signed any binding documents with any interested party. In any event, Sheraton will continue to be a management company."
Koor stated in response, "There is no agreement of any kind."
Published by Globes [online] - www.globes.co.il - on March 14, 2004