Isrotel to build Jaffa hotel

Shekem building Jaffa

The planned 120-room hotel on Jerusalem Boulevard is in a building with a preservation ordrer.

Isrotel Ltd. (TASE: ISRO), controlled by company president Julian Lewis, will build a hotel on Jerusalem Blvd. in Jaffa. The company has signed an agreement with SYA Group to purchase half of the corner Shekem building at 8 Jerusalem Blvd. for NIS 34.7 million.

The building, marked for preservation, has 3,522 sq.m. of built-up space. It was built in the 1920s and used by the British Mandatory regime. After being abandoned in the Israel War of Independence, ownership passed to the management of the Shekem chain of IDF stores. Isrotel will build a hotel with at least 120 rooms under its Isrotel Exclusive Collection brand name. The hotel will have a swimming pool, spa, restaurant, and commercial floor leased to third parties. Investment in the project is estimated at NIS 97 million.

Isrotel and the seller, which will each own half of the rights, have signed a management agreement with Isrotel Hotel Management for 24 years and 11 months. The management agreement is subject to approval by the Antitrust Authority director general. Advocates Uri Yamin and Adi Shachar of the Yehuda Raveh & Co. law firm represented Isrotel in the deal, and Adv. Ronen Cohen represented SYA.

Isrotel is currently building another hotel in the Little Tel Aviv complex on the northern part of Hayarkon St., and already has the Royal Beach Hotel on the Tel Aviv coastal strip. The chain also recently announced that it had purchased the Mizpe Hayamim Hotel in Rosh Pina for NIS 120 million. Isrotel's market cap is NIS 900 million.

Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Shekem building Jaffa
Shekem building Jaffa
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