Isrotel Ltd. (TASE: ISRO) has notified the Tel Aviv Stock Exchange (TASE) that it is buying the Sea of Galilee Hotel, together with a partner, for NIS 225 million, plus VAT. The parties have signed an agreement of principles but have yet to agree the terms of payment. Completion of the deal is subject to due diligence but the sellers agreement is binding.
The 212-room hotel overlooking the Kinneret (Sea of Galilee) is expected to become part of the Isrotel Group in the first quarter of 2022.
The hotel was built by the Tal family and began operations in 2019. The Sea of Galilee Hotel, in Migdal north of Tiberias, was designed to target tour groups of Christians visiting the sacred sites in the region but since March 2020 due to the Covid pandemic these guests have not been coming to Israel due to the prohibition on non-Israeli passport holders entering Israel, although it is hoped that the border will reopen on November 1.
Isrotel, controlled by the Lewis family, manages 20 hotels in Israel including eight in Eilat (Royal Beach, King Solomon, Royal Garden, Agamim, Sport, Lagoona, Isrotel Red Sea and Isrotel Riviera). Other hotels include the Isrotel Ganim by the Dead Sea and the Dead Sea Resort and Spa, Beresheet, Ramon Inn and Kedma in Mitzpe Ramon, Cramim in the Jerusalem Hills and Orient in Jerusalem as well as the Royal Beach and Isrotel Tower in Tel Aviv, the Publicis in Herzliya and the Carmel Forest Spa near Haifa. The Sea of Galilee will be Isrotel's second hotel in the Galilee after Mitzpe Hayamim, which was opened last year.
Because most of Isrotel's hotels are outside of Tel Aviv and Jerusalem, the chain has been less hit by the Covid crisis than Israeli rivals Fattal and Dan with domestic tourism flourishing in Eilat, the Dead Sea and Negev, where 13 of its hotels are located.
Published by Globes, Israel business news - en.globes.co.il - on October 20, 2021.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.