Israel Canada Acquires Brown Hotels in Greece

Photo source: Brown Hotels

Real estate company Israel Canada has announced the signing of two non-binding memorandum of understanding (MOUs) for the acquisition of Brown Hotels in Israel and Greece.

According to a report by Israel’s financial newspaper Globes, Israel Canada Hotels, which is 68 percent owned by Israel Canada, has signed the memorandums to acquire the Brown brand from its owners: Nir Waizman, Leon Avigad, Nitzan Perry, and insurance company Hachshara.

The first MOU pertains to the acquisition of the lease contracts for eight Brown Hotels in Greece with a total capacity of 1,067 rooms.

Photo source: Brown Hotels

Additionally, Israel Canada Hotels has agreed to another memorandum of understanding for the acquisition of Brown Hotels’ operations in Israel. The deal includes ten hotels with 779 rooms, operating under the Brown and Lighthouse brands, along with online activities and the loyalty club.

The total value of the two transactions is estimated at $26.5 million, which includes a cash component of $7.1 million and the assumption of debt.

“The company’s future strategy is to expand overseas and there is no doubt that the deal in practice can consolidate the management platform abroad,” Israel Canada Hotels CEO Reuven Elkes told Globes.

Israel Canada Hotels in Greece

Before the acquisition of Brown Hotels, Israel Canada Hotels owned 15 hotels—12 in Israel and 3 in Greece.

The company operates under the Play brand in various locations, including Tel Aviv, Jerusalem, and the Galilee.

Upon completion of the acquisition of Brown Hotels, Israel Canada Hotels will manage a portfolio totaling 3,600 rooms.