Israel Canada Hotels, a prominent player in the hospitality sector, is taking significant steps to expand its reach both in Israel and internationally. The company is currently engaged in strategic deals worth around NIS 200 million, aimed at strengthening its position as a leading hotel operator. With a focus on key markets such as Israel, Greece, and Cyprus, Israel Canada Hotels is expanding its portfolio of properties to meet the growing demand for diverse, high-quality accommodations. This move comes at a pivotal time as the tourism sector recovers from the challenges posed by the global pandemic, and Israel Canada Hotels seeks to cement its status as a leading hotel brand in the region.

Israel Canada Hotels’ Growing Domestic Presence

In Israel, Israel Canada Hotels is actively enhancing its presence with strategic acquisitions and investments. The company recently signed a memorandum of understanding to acquire a 50% ownership stake in two significant properties: the Galilion tourism complex and the Kfar Giladi Hotel. Located in the northern region of Israel, these two properties represent a major leap forward in the company’s expansion strategy.

The Galilion complex, situated in the beautiful Hula Valley, is a popular destination that boasts 120 guest rooms and suites, making it an ideal getaway for couples and families. The complex includes a spa center, swimming pool, restaurant, wine bar, and conference facilities. The Kfar Giladi Hotel, located in Kibbutz Kfar Giladi at the foot of the Naftali Mountains in the Upper Galilee, spans over 30 acres of well-maintained grounds, providing a serene environment for relaxation and leisure. These acquisitions, valued at approximately NIS 140 million, will be managed by Israel Canada Hotels, ensuring the company continues to provide exceptional service while benefiting from ongoing management fees.

Expansion in Tiberias: A New Lease Opportunity

In addition to its acquisitions, Israel Canada Hotels is in advanced negotiations to lease a 307-room hotel in Tiberias for a 15-year period, with an option to extend the lease for another 10 years. This property, which includes extensive public spaces and great potential for tourism activities, represents an exciting opportunity for the company to broaden its offerings in the region.

Plans for the hotel include a comprehensive renovation, aimed at transforming it into a family-friendly destination. With the growing demand for family-oriented travel experiences, this renovation will position the property as an attractive option for tourists looking for comfort and convenience in Tiberias, a popular location on the Sea of Galilee. The project aligns with Israel Canada Hotels’ broader strategy to expand its footprint in Israel and cater to a wide range of travelers.

Israel Canada Hotels’ Expansion in the South: Eilat and the 42 Degrees Project

Israel Canada Hotels is also making notable strides in the southern part of the country, specifically in the popular tourist destination of Eilat. Through a joint venture with the Karel Group, the company is investing NIS 1.5 million in the 42 Degrees project. This complex consists of nine buildings, public areas, a swimming pool, and a gym, and will be managed under a short-term hotel rental model.

This new investment in Eilat complements the company’s previous leasing agreement for a hotel located adjacent to the apartment complex. Both properties will be managed separately, offering tourists different experiences based on the type of service provided. This diversification ensures that Israel Canada Hotels can cater to various customer preferences, providing everything from family-friendly accommodations to more luxurious offerings in Eilat.

Aggressive International Expansion: Israel Canada Hotels in Greece

On the international front, Israel Canada Hotels is making significant inroads in Greece, a popular European destination that continues to draw millions of tourists each year. The company recently completed the acquisition of a Greek company holding the lease rights to a building on Theatrou Street in Athens, next to its existing Play Theatrou Hotel. This acquisition will allow the company to expand its presence in the vibrant Psiri neighborhood, a popular area for tourists.

The new building is set to undergo renovation and will be converted into a 50-room hotel with a restaurant, doubling the capacity of the Play Theatrou Hotel. With this expansion, the hotel will grow to 110 rooms, making it the largest hotel in the sought-after Psiri neighborhood. This acquisition is part of Israel Canada Hotels’ strategy to capitalize on Greece’s popularity as a global tourist hub and increase its footprint in one of Europe’s most desirable destinations.

In addition to this acquisition, Israel Canada Hotels is negotiating the lease rights to another hotel in a prime area of Greece. The estimated value of this deal is 13 million euros, and it represents another strategic move to strengthen the company’s presence in Greece, a market with significant growth potential. The addition of this hotel will further enhance Israel Canada Hotels’ urban portfolio and allow the company to attract more international visitors.

Strategic Focus on Brand Consolidation

Reuven Alkas, CEO and partner at Israel Canada Hotels, emphasized that these acquisitions and investments are integral to the company’s long-term growth strategy. By strengthening its presence in both domestic and international markets, the company is positioning itself to capture a larger share of the global hospitality market. As the tourism industry rebounds, Israel Canada Hotels aims to consolidate its brand and expand its offerings in key locations both in Israel and abroad.

“We see these deals as an opportunity to expand our footprint in the most sought-after markets, while also maintaining our commitment to quality and exceptional customer service. Our focus on Greece, Israel, and the southern region ensures that we can cater to a diverse range of travelers,” Alkas said.

The Current Hotel Portfolio of Israel Canada Hotels

Currently, Israel Canada Hotels operates 24 hotels in Israel, 11 in Greece, and one in Cyprus, with a total of approximately 3,800 rooms. The company’s diverse portfolio includes properties ranging from luxurious resorts to more budget-friendly options, catering to both leisure and business travelers. The expansion plans in Israel and Greece are expected to significantly boost the company’s portfolio, reinforcing its position as a leading hospitality provider in these regions.

Upon the completion of the new deals, Israel Canada Hotels will not only increase its room capacity but also enhance the variety of vacation experiences it offers, from family-friendly accommodations in Tiberias and Eilat to upscale urban properties in Athens. This growth strategy is designed to meet the increasing demand for high-quality hospitality options in both domestic and international markets.

Conclusion: A Bright Future for Israel Canada Hotels

Israel Canada Hotels is making substantial strides in expanding its footprint both in Israel and internationally. Through strategic acquisitions, joint ventures, and investments, the company is positioning itself as a leading player in the hospitality sector. With a strong presence in key tourist destinations like Eilat, Tiberias, and Athens, and a focus on customer service and quality, Israel Canada Hotels is poised for continued success in the growing global tourism market.

As the company strengthens its brand and expands its portfolio, travelers can expect an even more diverse range of accommodation options and experiences, catering to a variety of preferences and budgets. Israel Canada Hotels’ ongoing commitment to excellence ensures that it will remain a key player in the international hospitality industry.