Isrotel to build hotel in Tel Aviv's Mugrabi Square

Isrotel Tel Aviv Hotel - Pinsker Street  / Imagin: Bar Orian Architects

Isrotel and White City Buildings will convert a five-floor historic office building in Pinsker Street into a hotel.

White City Buildings has signed a partnership agreement (50%-50%) with Isrotel Ltd. (TASE: ISRO) to develop and build a hotel in Mugrabi Square at the corner of Pinsker Street and Allenby Street in central Tel Aviv. The hotel will be in buildings bought by White City buildings in recent years, which need to be rezoned as a hotel. Sources close to the deal say the land is worth NIS 90 million.

The main part of what will be the new hotel has a preservation order and currently serves as a five-floor office building at the corner of Pinsker and Allenby Streets, which was built on a 1,000 square meter lot shortly before the establishment of Israel. The two companies intend building a 170-room hotel encompassing 6,600 square meters of buildings. Construction will cost an estimated NIS 200 million. The project is being designed by architect Gidi Bar Orian.

White City Buildings bought 36.6% of the rights to the lot in 2018 from private owners and the balance several months ago from IDB unit Property and Building Ltd. (TASE: PTBL) for NIS 57 million.

White City Buildings chairman Itzik Ben-Shoham said, "The place has architectural and historic value and is opposite the lot which once contained the famous Mugrabi cinema. The Beit Landau building is part of November 29 (Mugrabi) Square and was built as an office block in 1947 and incorporates unique architectural details that have been preserved over the years. We are planning a five-floor hotel with a rooftop floor with a large swimming pool on it."

Isrotel CEO Lior Raviv said, "Despite the coronavirus and despite the halt in incoming tourism, we are still looking ahead and we believe in the power of tourism in Tel Aviv and that it will return."

Published by Globes, Israel business news - en.globes.co.il - on June 14, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Isrotel Tel Aviv Hotel - Pinsker Street  / Imagin: Bar Orian Architects
Isrotel Tel Aviv Hotel - Pinsker Street / Imagin: Bar Orian Architects
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