The Mivtachim Pension Fund is closing its Carmel Gardens Hotel (Ganei HaCarmel) in Zichron Yaakov because of heavy losses. 50 hotel employees will be laid off.
Mivtachim fully owns the hotel, which is managed by the Gardens Hotels Israel management chain, also fully owned by Mivtachim.
The hotel has existed for 60 years, and served as a sanatorium for the Clalit Health Fund for 20 years. The Moriah hotel chain assumed management of the hotel in the early 1990s, but the hotel reverted to Mivtachim in 1999. Mivtachim also has hotels at the Dead Sea and in Nazareth.
In April 2004, Mivtachim Pension Fund authorized manager Adv. Yaron Arbel to replace all the directors at all three hotels, and appoint professional personnel in their places. Adv. Ofer Dahan was appointed chairman of the hotel division, and began examining their assets and economic conditions.
An external advisor was commissioned to make recommendations on the continued operation and sale of the hotels. The advisor has not finished his work on the Dead Sea Gardens and Nazareth Gardens hotels.
The advisor recommended closing Carmel Gardens, since it posted heavy losses in recent years. Mivtachim’s board of directors decided to close the hotel, as of September 1.
Published by Globes [online] - www.globes.co.il - on July 5, 2004