Brown Hotels in partnership with Aman Computers led by CEO Ben Pasternak has won the Israel Airports Authority (IAA) tender to build a hotel near Ben Gurion airport's Terminal 3. The tender, which had previously attracted no bidders, was recently republished with improved terms, while the number of passengers passing through the airport has increased to 25 million annually.
The new hotel will be built within walking distance of the west side of Teminal 3, the airport's main terminal. The hotel will be built on a Design Build Operate Transfer (DBOT) basis and will revert to the IAA after 25 years. The hotel will include a check-in service and transport to the terminal.
Leon Avigad, one of the founders and owners of Brown Hotels, told "Globes" that the hotel will charge affordable prices, "The idea is to make something that will give those flying a genuine reason to stay there. Our challenge is that the airport is close to Tel Aviv and there are no connection flights. Our ambition is to build an airport that won't just be a regular airport hotel with a balcony overlooking the takeoffs and landings and a fitness room. The aim is that guests won't get fed up about staying in an airport hotel."
Brown Hotels will also face competition from other hotels being built near the airport. For example, Nitsba Holdings Ltd. (TASE: NTBA) is building a hotel at Airport City.
Brown Ben Gurion airport will be built on a 7,500 square meter lot and will have 200 rooms. Brown already has a presence at Ben Gurion airport because it operates the spa in El Al Israel Airlines Ltd. (TASE: ELAL) King David lobby spa.
The tender winners will be eligible for a grant from the Ministry of Tourism for between 20% and 33% of their investment.
Previous tenders in 2015 and 2017 resulted in no bidders. Brown will be required to pay a monthly fee to the IAA when the hotel is operating.
Published by Globes, Israel business news - en.globes.co.il - on December 15, 2019
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