Real estate company Israel Canada has announced the signing of two non-binding memorandums of understanding (MOUs) to acquire the operations of Brown Hotels in Israel and Greece.

Concurrently, discussions are underway to merge Israel Canada's hotel activities with the DNA Group stock market shell. Both entities are under the control of Barak Rosen and Asi Touchmair, reported Globes.

Israel Canada Hotels, which is 68% owned by Israel Canada, signed the MOUs to acquire the Brown brand from its founders Nir Waizman, Leon Avigad, Nitzan Perry, and Hachshara Insurance.

The first MOU pertains to the acquisition of Brown Hotels' ventures in Greece, involving the takeover of lease agreements for eight hotels, encompassing 1,067 rooms, without any payment.

Additionally, Israel Canada Hotels has agreed to an MOU for the purchase of Brown Hotels' operations in Israel.

The Israel deal encompasses ten hotels with 779 rooms, complete with furnishings, the Brown and Lighthouse brands, online activities, and the loyalty club.

The total transaction of the two deals is valued at NIS100m ($26.5m), including a NIS27m ($7.1m) cash component and the assumption of debt.  

Israel Canada Hotels partner and CEO Reuven Elkes said, "The company's future strategy is to expand overseas and there is no doubt that the deal in practice can consolidate the management platform abroad."

Before the agreement with Brown Hotels, Israel Canada Hotels owned 15 hotels—12 in Israel and three in Greece.

The company operates under the Play brand name and other brands in various locations, including Tel Aviv, Jerusalem, and the Galilee.

Upon completion of the Brown Hotels acquisition, Israel Canada Hotels will manage a portfolio of hotels with a total of 3,600 rooms.