The Azrieli Group estimates the value of the hotels it owns at about 541 million ILS, when the value has increased by about 16 million ILS since the end of December 2023. At the end of last year, the value was estimated at about 525 million ILS. By the way, the hotel assets make up only about 1% of the group’s total assets.
The group owns the Mount Zion hotel in Jerusalem, which was purchased back in February 2020, for approximately 275 million ILS. Since March 2020, the hotel has been closed and the group is working to expand it to include 341 rooms with an underground parking lot that will include approximately 210 parking spaces.
The company estimates that it will be able to open the renovated hotel in 2027, and the cost of the completed construction will be 645-675 million ILS. The company intends to open a class A plus hotel.
The company also owns the Red Rock Hotel in Eilat, which was purchased during 2023 for approximately 130 million ILS. Renovations have not started yet.
The company anticipates that during the year, it will open an 85-room hotel located near the Azrieli Mall in Modi’in, and is also working on the expansion of the Azrieli Center in Tel Aviv (the Spiral Tower) which is expected to include, among other things, a hotel with about 250 hotel rooms and suites.
The company states, not for the first time, that it “has come to the conclusion that entering the hotel industry will be an opportunity to expand the group’s mix of activities, using the company’s existing initiative capabilities and the real estate assets it owns and the operational experience gained in the sheltered housing sector”.