Barak Rosen and Asi Touchmair of Israel Canada have confirmed the signing of two non-binding memorandums of understanding (MoUs) for the acquisition of the Brown Hotels brand from founders Nir Waizman, Leon Avigad, Nitzan Perry, and Hachshara Insurance. Concurrently, discussions are underway to integrate Israel Canada’s hotel operations within the DNA Group’s stock market shell, as reported by Globes.
Under the terms of the first MoU, Israel Canada Hotels will assume the lease agreements for eight Brown Hotels in Greece, encompassing 1,067 rooms, at no cost. The agreement extends to taking on leases for Brown Hotels’ properties in Tel Aviv and Jerusalem as well.
Furthermore, Israel Canada Hotels has agreed to another MoU to purchase Brown Hotels’ operations in Israel for NIS 100 million (approximately US$25.5 million). This sum includes NIS 27 million in cash, with the remainder covered by assuming existing debts. This acquisition encompasses 10 hotels featuring 779 rooms, complete with furnishings, the Brown and Lighthouse brands, as well as the brand’s online presence and loyalty programs.
The tourism sector in Israel, including the Brown Hotels Collection, has been experiencing a significant downturn due to the ongoing conflict in Gaza. The Collection, prior to the acquisition, managed 15 hotels in Tel Aviv, seven elsewhere in Israel, two in Greece, and one in Croatia. Under the new arrangement, Israel Canada Hotels -which is majority-owned by Israel Canada but operates as a private entity – will take over these properties. Notably, while the hotels in Israel are leased, the properties outside Israel are owned outright.
In the wake of this acquisition, Hachshara, a major insurance firm, will maintain a 30% stake in the Collection. With the addition of Brown’s assets, Israel Canada Hotels now manages a portfolio of approximately 3,600 rooms, expanding its presence in the hospitality sector and potentially positioning itself for a recovery post-conflict.
The article Israel Canada Hotels acquires Brown Hotels Collection first appeared in TravelDailyNews International.
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