Israeli hotel chain Isrotel Ltd. (TASE: ISRO) has notified the Tel Aviv Stock Exchange (TASE) that it will lease and operate a luxury boutique hotel that will be built by a third party at the corner of Ahad Ha'am Street and Nahlat Binyamin Street in Tel Aviv.
Isrotel is thus joining the growing trend of opening boutique hotels in Israel, especially in the center of the country. The trend is being encouraged by the authorities to combat a lack of rooms in the Tel Aviv area and high prices.
The new hotel is scheduled to open in 2022 and will be part of Tel Aviv Municipality's major renovation program that includes preservation of many of the buildings in Nahlat Binyamin Street.
Isrotel CEO Lior Raviv said, "We are talking about a relatively small hotel with an urban neighborhood atmosphere with less rooms than we usually have. It will include 87 rooms and commercial space."
87 rooms will be subject to receiving planning permission for construction of an additional floor.
When the hotel is opened, Isrotel will have 930 rooms in Tel Aviv with plans to reach 1,500 rooms, Raviv said.
Isrotel recent began building a 130-room hotel in a preserved building opposite the Gesher theater in Jaffa. The developers are the Gabso family who had originally been given a permit to build apartments but chose to switch to a hotel. Isrotel will lease that hotel for 15 years from completion with an option to extend for another 10 years.
Nationwide, Isrotel operates 18 hotels around Israel including eight in Eilat. The chain has 3,820 rooms with 3,263 rooms in hotels that the company owns as well as operates.
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2018
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