Israel Canada in Talks to Buy Tamares Hotels

Main Photo: The Tamares West All Suite Hotel, Tel Aviv

Date: September 2020

Location: Tel Aviv, the Dead Sea, Ashdod, Netanya and Herzliya….Israel

Name: Tamares Hotels

No of Keys: 712

Seller: Tamares Hotels Israel, owned by businessman Poju Zabludowicz. Tamares has five hotels in the Dead Sea, Tel Aviv, Ashdod, Netanya and Herzliya, with 712 hotel rooms in total. Tamares also operates two spa centres at the Daniel Hotel in Herzliya and at the Dead Sea.

Buyer: Real estate developer Israel Canada is in talks to acquire Tamares Hotels Israel. Like most hotels in Israel, the chain’s hotels have been closed since March, and have been opening gradually as of July 1.

Canada Israel’s hotel arm, Play, which is managed by Reuven Elkes, formerley CEO of Brown Hotels, includes a hotel that the group plans to open in six months in the Midtown project in Tel Aviv. The project is for 120 rooms and commercial and leisure buildings, including a Zappa club. The group has set a target of 1,000 rooms, most of which will be integrated with real estate projects under construction by the company. The company currently manages 500 rooms in various hotels, including two hotels in Tiberias: the Lake House Tiberias Hotel (formerly Hamei Tveria) with 250 rooms and Hotel Villa Europa 1917 Tiberias, a boutique hotel with 31 rooms. The company is also involved in the Harlington Ashkelon Hotel (formerly the Holiday Inn). In addition they announced in September 2019 that they would renovate and manage a third hotel in Tiberias, The Galei Kinnereth Hotel.

Israel Canada confirmed in a report to the Tel Aviv Stock Exchange that it has begun conducting due diligence of the Tamares hotel chain, but a binding agreement has not yet been signed between the parties, and the company is unable to assess the chances of success in the negotiations “as it not certain that the negotiations will bring about an binding agreement between the two sides, in light of the due diligence findings.”

The Tamares hotel chain is part of the international Tamares Group, founded 50 years ago by the late Finnish entrepreneur Shlomo Zabludowicz, and now managed by his son, Poju Zabludowicz. In the past, Zabludowicz was interested in acquiring Bezeq Israeli Telecommunication and even owned shares in El Al Israel Airlines parent company Knafaim Holdings, which is controlled by the Borowitz family.

“As a private company, we do not usually inform the press about moves related to our business. We should note that, from time to time, there are serious and significant entities that show interest in our excellent assets. We emphasise that Poju Zabludowicz and the Zabludowicz family have been involved in wide-ranging investments and business activities in Israel for 70 years, and will continue to work on investments benefiting the State of Israel in the future, as well.”

THPT Comment: Tamares has an interesting and colourful background and a great hotel portfolio. 

First Seen: Globes

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