Dan buys hotels in Eilat, Safed and Nazareth

Ofer Nimrodi Photo Vardi Kahana PR

Dan has acquired three hotels from Israel Land Development Hotel's Rimonim chain.

The Dan Hotels chain is acquiring three hotels from Israel Land Development Hotels (TASE: HAHO), owner of the Rimonim hotel chain, for a total of NIS 225 million. The hotels are Rimonim Eilat Hotel, with 278 rooms and 1,600 square meters of space (NIS 110 million); Ruth Rimon Hotel in Tzfat, with 75 room (NIS 33.7 million); and Rimonim Nazareth Hotel, with 226 rooms (NIS 63.6 million). The deal is contingent on approval by the Israel Competition Authority (formerly the Antitrust Authority) director general and the bank holding a lien on the Rimonim Eilat Hotel.

Israel Land Corporation has three months to decide whether to add the Neve Ativ Rimonim Hermon Holiday Village, with 44 rooms to the deal for an additional NIS 17.7 million.

The Rimonim hotel chain has other hotels: Rimonim Galei Kinneret Hotel, Rimonim Palm Beach Hotel in Akko, Rimonim Tower Hotel in Ramat Gan, and Rimonim Shalom Htel in Jerusalem.

After using NIS 72 million from the proceeds on the deal to repay loans, Israel Land Development Hotels will have NIS 153 million left in cash. Its profit on the deal, before expenses and taxes, is NIS 15 million.

Israel Land Development Corporation CEO Ofer Nimrodi said, "The current deal is another element in the Israel Land Development group's strategy of selling assets that are not in its core business and focusing on income producing real estate activity in Israel and overseas."

The agreement gives Dan Hotels the right to negotiate for an agreement to manage three more Rimonim hotels not involved in the deal.

Israel Land Development Corporation owns 83.3% of Israel Land Development Hotels, which operates mainly under the Rimonim brand. There are eight Rimonim hotels with an aggregate total of 1,255 rooms: three fully owned hotels, one partly owned, and four under management agreements.

Published by Globes, Israel business news - en.globes.co.il - on February 20, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Ofer Nimrodi Photo Vardi Kahana PR
Ofer Nimrodi Photo Vardi Kahana PR
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