Dan Hotels eyes Rimonim hotel chain

Rimonim Central Park Hotel, Eilat  photo: PR

Negotiations on buying Israel Land Development Hotels Ltd., which owns the Rimonim chain, are at a price of NIS 140 million.

The consolidation in Israel's tourism industry is gathering momentum. Dan Hotels Ltd. notified the Tel Aviv Stock Exchange today that it is in negotiations to buy Israel Land Development Hotels Ltd., which owns the Rimonim chain of hotels numbering eight hotels in Israel, for NIS 140 million. Israel Land Development Hotels also issued a notice of the negotiations.

In addition to this amount, the outline deal also stipulates that the shareholders in Israel Land Development Hotels will be entitled to compensation from the NIS 10.5 million lawsuit filed by the company against the Israel Land Administration, if the company wins the case.

According to the announcement from Dan Hotels, the negotiations will mature into a deal after a feasibility study and subject to the necessary regulatory approvals. Following the announcement of the negotiations, the share price of buy Israel Land Development Hotels shot up 35%. The share price of parent company Israel Land Development Company is up 2.5%, while that of Dan Hotels is up 4%.

Published by Globes, Israel business news - en.globes.co.il - on December 3, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Rimonim Central Park Hotel, Eilat  photo: PR
Rimonim Central Park Hotel, Eilat photo: PR
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