The Brown Hotels chain is entering the Tel Aviv Stock Exchange (TASE) through a merger with Herodium Investments (TASE: HROD), which currently has no significant activity. The activity of the boutique hotel chain is being merged into Herodium at a value of NIS 325 million. The merger is taking place through an allocation of shares to Brown Hotels' shareholders: the Leopard group, controlled by Leon Avigad; Nitzan Perry; and businessperson Nir Weizman. Former Fattal hotel chain CEO Reuven Elkes recently became manager of the chain.
The announcement by Herodium on the matter indicates that in return for putting Brown Hotels' activity into Herodium, Brown Hotels' shareholders will receive 75% of the shares in the merged company, with an option to increase their holding to 85%, subject to conditions.
A month ago the Brown Hotels chain opened the Lighthouse Hotel at 1 Ben Yehuda St. in the Migdalor building. When completed, the hotel's 100 rooms will be expanded to 156 rooms.
The Brown Hotel chain operates both in Israel and overseas. The chain's first hotel was built in 2010. The chain now has eight boutique hotels, most of them in Tel Aviv, including the Brown TLV and Poli House Hotels, and also in Jerusalem and Croatia. The chain's hotels preserve a special character resulting from careful design. Avigad told "Globes," "Regardless of its size, a boutique hotel has to give a guest an intimate feeling. It's important for it to make a statement and not to be just a run of the mill hotel."
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2018
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