Tel Aviv, Israel, Jan. 23, 2022 (GLOBE NEWSWIRE) — Despite the damage the pandemic has inflicted on the hospitality industry in Israel, the Dayan brothers and the Isrotel hotel chain have still managed to survive. The Isrotel chain leaves Israel for the first time to expand abroad. According to Israeli newspapers Calcalist and The Marker, the parties are currently negotiating to buy several hotels in Cyprus and Greece.
The Dayan brothers, who are aggressive in the hotel business, are the beneficial owners of AFI hotels in Israel. As a result, they decided to expand their activities to Europe and other regions. This was confirmed by the Israeli newspaper Calcalist, as the hotel chain and the brothers are going to buy 60 hotels in Greece and Cyprus for a colossal sum of 1.2 billion euros.
In fact, the hotels are currently on sale; hence the purchase of several hotels by the Isrotel chain and the Dayan brothers. Most of the hotels they plan to buy are located in most regions of Greece and a minority in Cyprus. However, no one yet knows if other entities are bidding on the hotels for sale.
The Isrotel chain has a current market value of NIS 5.7 billion. However, it has maximized its expansion opportunities in its core area, Israel, as the group owns the majority of hotel chains in the country. In addition, the hotel chain’s competitor, Fattal, also owns several hotel chains in Israel. It currently owns 48 hotels in Europe, out of 216 hotels some of which are in Europe.
Failure to expand into Israel is likely the reason the channel is focusing on expanding into Greece and Cyprus. It’s a smart move since the channel is expanding outside instead of just focusing on Israel. The expansion will minimize the risk of loss during damage sustained during the pandemic. Moreover, despite rumors that he has received state aid, he is also using his assets to expand further.
The Isrotel chain
David Lewis created and founded the Isrotel chain in 1980. The chain has 20 major hotels in Israel, most of which are located in Eilat. They own the majority of the shares of 80%.
Additionally, Isrotel is one of the largest hotel chains in Israel, including in the luxury hotel sector. Since the chain has hotels in tourist regions such as the Dead Sea, Eilat, Tel Aviv and Jerusalem, it has the major market and presence.
Despite owning more than half of the hotel rooms in Eilat, Isrotel is still recovering from the pandemic. Halting international flights could see the chain’s ownership plummet to 42% by 2025. Nonetheless, it still took off for a profit of NIS 186 million in the first three quarters of 2021, which rose of NIS 11 million. value in 2020. The jump in profits from NIS 664 million in 2020 to NIS 1.164 billion in 2021 proved that Isrotel can recover.
Besides expanding in Europe, Isrotel is also opening two other hotels in Israel. These hotels include 45 suites in Ein Bokek in the Dead Sea and 130 rooms in Tel Aviv. Lior Raviv, the CEO, spearheaded the nationwide expansion, who said his initial plan was to open 1,500 rooms in Tel Aviv.
The Dayan Brothers are a family of businessmen investing primarily in real estate. They mainly operate in Germany and England and are beneficial owners of the real estate company Vivion S.à.rl. They also bought two hotels – Sanderson and St. Martin’s Lei in 2019 from Shaikh Hamad bin Jasm al-Thani, the former prime minister. However, recently they decided to focus on hospitality.
In Israel alone, the brothers bought Africa Israel Hotels, which operates Crowne Plaza hotels (as a franchisee of the IHG chain) in Haifa and Tel Aviv and owned other hotels in Jerusalem, Eilat and the Sea. Dead.
Moreover, Dayan Brothers is also established in the hotel industry in Greece long before. Therefore, they decided together with the Isrotel chain to expand into the country. They will compete with the main competitor, Fattal, which also has a significant presence in Greece.
One of the younger Dayan brothers, Amir Dayan, is an entrepreneur, investor, and businessman specializing in real estate and hospitality. Using his in-depth knowledge of these industries, he directs the family’s real estate and hotel investments.
Amir Dayan currently lives in Amsterdam but operates in Germany, Israel, with Greece and Cyprus as new prospects. Through his experience, Amir Dayan is also a shareholder of various companies such as Lianeo Real Estate, Golden Capital and Vivion Sarl
There is no offer to sell, no solicitation of an offer to buy, and no endorsement of security or any other product or service in this article. Further, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether an investment, investment strategy, security or related transaction is suitable for you based on your investment objectives, financial situation and risk tolerance. Consult your business advisor, attorney or tax advisor regarding your specific business, legal or tax situation.
Company Name: Africa Israel Hotels
City: Tel Aviv