Israel Canada to buy Brown Hotels chain

Israel Canada Real Estate (TASE: ISCN), controlled by Barak Rosen and Asi Tachmer, announced the signing of two non-binding memoranda of understanding to acquire Brown Hotels’ operations in Israel and Greece. At the same time, talks are underway to merge Israel Canada’s hotel operations into the stock market DNA Group, also controlled by Rosen and Tachmer.

Israel Hotels Canada, in which Israel Canada owns 68%, has signed memoranda of understanding to purchase the Brown brand from Nir Weizman, Leon Avigad, Nitzan Perry and Hashachara Insurance Company.

In the first MOU, Israel Hotels Canada will purchase Brown Hotels’ operations in Greece at no charge and assume the leases for the eight hotels, which have 1,067 rooms. Similarly, Israel Hotels Canada will also assume the leases for Brown Hotels in Tel Aviv and Jerusalem.

Additionally, Israel Hotels Canada has signed a memorandum of understanding to purchase Brown Hotels’ operations in Israel. Israel Hotels Canada will pay NIS 100 million, including NIS 27 million in cash and the rest through debt assumption. The deal includes 10 hotels with 779 rooms, including Brown and Lighthouse furnishings and brands, online activities and a loyalty club.

Expanding abroad

“The company’s future strategy is to expand abroad and there is no doubt that the deal could practically strengthen the management platform abroad,” said Reuven Elkes, partner and CEO of Israel Hotels Canada.

Prior to the Brown Hotels deal, Israel Hotels Canada owned 15 hotels — 12 in Israel and three in Greece. With hotels in Tel Aviv, Jerusalem, the Galilee and elsewhere, the company operates under the Play and other brands. Following the Brown Hotels deal, Israel Hotels Canada will have 3,600 rooms.

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 19, 2024.

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