Isrotel Ltd. (TASE: ISRO) said today that it will increase the number of hotels it operates in Israel from 19 to 30 by 2025, when reporting its financial results for 2018. eight of the 11 new hotels will be open by 2022.
At present the focus of the company's operations is in Eilat where Isrotel has eight hotels. But in the coming years the focus will shift somewhat to Tel Aviv where it currently has two hotels and is building five more hotels. Isrotel CEO Lior Raviv said, "We believe in Tel Aviv, which combines business and tourism and is becoming a strong international brand."
He added, "Tel Aviv Municipality is encouraging and pushing for the construction of hotels. Here we are also talking about buildings for preservation that are zoned for residential building but today it is understood that the returns from hotels are better. If we used to come and talk about a hotel instead of offices they would tell us that offices have better returns. Today developers are forgoing residential construction and preferring to build hotels."
Isrotel is currently building: the North Yarkon Tel Aviv Port Hotel - a 154 room hotels plus penthouses due to open in 2021; the Leon Towers - a 235 room five star hotel due to open in 2022; a 125-room luxury hotel in the former Shekem building on Jerusalem Boulevard in Jaffa due to open in 2022; an 87-room boutique hotel in a building for preservation on the corner of Ahad Ha'am and Nahlat Binyamin streets due to open in 2022; and a 122-room hotel at 99 Dizengoff due to open in 2022 in a building for preservation in an equal partnership with White City Buildings.
Elsewhere, Isrotel is building the 250-room Zion square hotel, a 4+ star hotel on Jerusalem's Jaffa Road due to open in 2022. Isrotel is also building a 43-suite luxury hotel at Ein Bokek by the Dead Sea also due to open in 2022 and the 163-room Kedma hotel in Sde Boker in the Negev near Ben Gurion's former home, which will open next year.
Published by Globes, Israel business news - en.globes.co.il - on March 31, 2019
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