Hotel company Pies Siam (TASE: PIES) began trading on the Tel Aviv Stock Exchange yesterday. The company was founded and is managed by veteran real estate developer Shlomo Dahocki, who serves as Chairman of the Board of Directors. Until recently, Pies Siam was jointly owned by Dahokey and Aspen Group (TASE: ASGR).
Aspen Group sold its shares in the IPO, while Pies Siam also issued new shares, which were purchased by institutional investors at a company valuation of NIS 810 million. Peace Siam has become the fourth hotel company on the Tokyo Stock Exchange, joining Fattal, Isrotel and Dan Hotels.
Pies Siam, founded in 2007, currently operates two Ibis hotels in Jerusalem and together with Isrotel owns 50% of a hotel near the port of Tel Aviv, which Isrotel operates. Pies Siam plans to develop and build six more hotels including a holiday village with Isrotel next to the Sea of Galilee in the Gulf of Amnon, and hotels in Safed, Mevaseret Zion, Jerusalem and the Dead Sea. The company is also promoting the construction of three sheltered housing schemes: two in Tel Aviv (one in Neve Zedek) and one on Haneviim Street in Jerusalem.
Dahoki, who now owns a 50% stake in Pies Siam, told the Globes after the IPO was completed that he believed institutional investors came in at the right time with signs the war was coming to an end and expectations of a recovery at the hotel. sector. He said: “We feel that we are talking about the end of the road (for the war). Foreign airlines are starting to return to the country, and hotels in places like Jerusalem and Tel Aviv, which depend more on foreign tourism, are expecting a recovery.”
Dahoki added: “The core activities of Pies Siam, which are the construction, planning and improvement of real estate, were not affected at all during the war – quite the opposite. During this period, the company developed most of its plans. Our Featured Locations We succeeded in getting through this period safely, and in terms of Operationally, we were completely balanced once flights return and hotel occupancy will rise.”
As far as is known, Dahoki was aiming for a higher value of about NIS 1 billion for Pie Siam, but in the end the valuation at which its shares were sold to institutional investors in the deal was approximately 20% lower. However, his companions consider the completion of this step a success for him.
Pizza franchise and KFC
The IPO now returns Dahuki, 67, to the position of sole controlling shareholder in Pie Siam, where he serves as chairman. Al-Dokki has 35 years of experience in establishing, managing, planning and building residential, commercial, industrial, hotel and senior housing projects through his company Penthouse. In the past, he was also a franchisee of the Pizza Hut and KFC restaurant chains in Israel. Among others, Dahoki has built thousands of housing units across the country including Jerusalem, Tel Aviv, Rishon Lezion, Shoham, Mevaseret Zion and Eilat. He developed and built Harel Mall in Mevaseret Zion, Rav Shiva Mall in Jerusalem, and Malaka Sheba Mall in Eilat.
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Peace Siam ended the first nine months of 2024 with revenues of NIS 21.5 million, down 27% from the corresponding period in 2023. The decrease was due to the outbreak of war and the occupancy of hotels by evacuees. BaySiam recorded a net loss of NIS 36 million compared to NIS 62.5 million in the corresponding period of 2023. The decrease in loss is mainly due to differences in the fair value of its assets between the two periods.
Published by Globes, Israel Business News – en.globes.co.il – on January 23, 2025.
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