Israel Canada Hotels is buying three hotels in Israel from the Tamares Hotels chain for NIS 155 million. The deal is for the Daniel Dead Sea Hotel, the West Ashdod and West Tel Aviv hotels, the chain's marketing and information networks, and the West brand.
Talks on the acquisition of Tamares Hotels have been going on for several months. The consideration in the deal is adjusted for the condition of the hotel industry resulting from the coronavirus pandemic. The deal does not include the Daniel Herzliya Hotel at this stage, of the West Hotel Netanya. Tamares will retain its chain of spas (Shizen).
Israel Canada, controlled by Barak Rosen and Asaf Touchmair, formed its hotels arm in 2019. The company's hotel business is managed by Reuven Elkes, formerly CEO of Fattal Hotels. Elkes holds 20% of Israel Canada Hotels. On completion of the deal with Tamares, Israel Canada Hotels will manage 1,350 hotel rooms.
The hotels bought from Tamares will join the Play MidTown hotel in Tel Aviv, due to open in March, and containing 120 rooms, a commercial area and an entertainment area; the Lake House Kinneret Hotel (formerly Tiberias Hot Springs Hotel), with 250 rooms; the Gonen Holiday Village in the north of Israel; the Harlington Hotel, Ashkelon; and the Soleil Hotel, Eilat, due to open when the city opens up in the framework of the 'tourist island' law.
The Daniel Dead Sea Hotel, which to a large extent represents the core of the deal, has 302 rooms, of which two are presidential suites and eighteen are suites; a spa center, conference hall that holds 800 people; and a private beach. The company plans to expand the number of rooms and to upgrade floors to premium rooms.
Elkes described the new acquisitions as "attractive hotels with high upgrade potential." "The acquisition is a strategic purchase, taking place after eighteen months of activity in hotels. For Israel Canada, the deal completes a significant presence on Israel's vacation map, at the Dead Sea, and on the Mediterranean coast in Tel Aviv. We believe that with our 'better and different' strategy, combined with the group's strategic assets and exploitation of interesting opportunities in the market in the light of the period, we can become the spearhead of the tourism industry in the coming years," Elkes said.
Poju Zabludowicz, owner of the Tamares chain, welcomed the closing of the deal. "I believe that Israel Canada Hotels will make this important asset grow and develop, for the benefit of the public and of tourism in Israel. We are handing over an excellent, strong asset, and we wish the buyers great success."
Published by Globes, Israel business news - en.globes.co.il - on November 25, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020