Isrotel Ltd. (TASE: ISRO) has signed a non-binding agreement in principle to buy the Mizpe Hayamim Hotel in Rosh Pina from Sami Hazan. The hotel contains 97 rooms and suites, a spa, restaurants, and two shops. The price is NIS 103 million, or NIS 120 million including VAT.
The Mizpe Hayamim Hotel, considered a luxury hotel, was built in 1966 by Dr. Erich Jacob Yaroslavsky (Yaros). In addition to the main hotel building, the site contains 150 dunam (37.5 acres) with a natural grove, a cowshed and dairy, a sheep pen, a pasture, and an organic farm that supplies raw materials for the hotel restaurant.
Dr. Yaros believed in natural cures for diseases, and he dreamed of founding a 12-room guest house that could help patients in need of personal attention. In the late 1930s, his wife's parents bought the isolated site for the couple, located on a mountainside overlooking Rosh Pina, below Tzfat. In the late 1960s, Yaros and his wife opened the place to visitors, and it was sold to Sami Hazan in 1982. The hotel staff currently numbers over 200. Isrotel says that by the end of March, the parties expect to sign a binding agreement, and the deal will probably be completed by the end of June.
Located near the hotel, the farm on the site provides produce for the hotel. Under the final binding agreement, Isrotel will undertake to preserve the character of the farm and its agricultural activity. The agreement will also include a undertaking by Isrotel to maintain the hotel's unique nature. The parties also agreed that if Hazan decides to sell the farm, Isrotel will have first refusal rights to it.
Isrotel currently has nine hotels in Eilat, with additional hotels in Mizpe Ramon, the Dead Sea, Carmel Forest, Jerusalem, and Tel Aviv. The chain operates a total of 4,140 rooms, of which it owns 3,166 wholly or in part. Isrotel's revenue grew 6% to NIS 947 million in the first nine months of 2015, and its net profit during this period rose 35% to NIS 84 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 28, 2016
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