Israel Canada in talks to buy Tamares hotels

Poju Zabludowicz Photo: Yossi Cohen
Poju Zabludowicz Photo: Yossi Cohen

Tamares has 712 rooms in five hotels in Tel Aviv, the Dead Sea, Ashdod, Netanya and Herzliya.

Real estate developer Israel Canada Ltd. (TASE: ISCN) is in talks to acquire Tamares Hotels Israel, owned by businessman Poju Zabludowicz. Tamares has five hotels in the Dead Sea, Tel Aviv, Ashdod, Netanya and Herzliya, with 712 hotel rooms in total. Tamares also operates two spa centers at the Daniel Hotel in Herzliya and at the Dead Sea.

Like most hotels in Israel, the chain's hotels have been closed since March, and have been opening gradually as of July 1.

Israel Canada has long stated that it intends to expand its hotel operations through a division managed by Reuven Elkes. In this framework, it expects to open the renovated Galei Kinneret Hotel in Tiberias; another property, the Soleil Boutique Hotel, is already operational in Eilat. Another hotel is expected to be part of the group’s Midtown Tel Aviv high-rise project.

Israel Canada confirmed in a report to the Tel Aviv Stock Exchange that it has begun conducting due diligence of the Tamares hotel chain, but a binding agreement has not yet been signed between the parties, and the company is unable to assess the chances of success in the negotiations "as it not certain that the negotiations will bring about an binding agreement between the two sides, in light of the due diligence findings."

The Tamares hotel chain is part of the international Tamares Group, founded 50 years ago by the late Finnish entrepreneur Shlomo Zabludowicz, and now managed by his son, Poju Zabludowicz. In the past, Zabludowicz was interested in acquiring Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and even owned shares in El Al Israel Airlines Ltd. (TASE: ELAL) parent company Knafaim Holdings Ltd. (TASE: KNFM), which is controlled by the Borowitz family.

"As a private company, we do not usually inform the press about moves related to our business. We should note that, from time to time, there are serious and significant entities that show interest in our excellent assets. We emphasize that Poju Zabludowicz and the Zabludowicz family have been involved in wide-ranging investments and business activities in Israel for 70 years, and will continue to work on investments benefitting the State of Israel in the future, as well."

Published by Globes, Israel business news - - on August 27, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Poju Zabludowicz Photo: Yossi Cohen
Poju Zabludowicz Photo: Yossi Cohen
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