Daily Newsletter

20 September 2024

Daily Newsletter

20 September 2024

Israel Canada signs MOUs to acquire Brown Hotels’ operations in Israel and Greece

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

Shivam Mishra September 20 2024

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.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close