Israeli Boutique Hotel Chain Wants Its Own Airline
Hotel chain Brown has reached understandings in a deal to acquire Israeli airline Israir for $70 million, according to one person familiar with the matter
Israeli boutique hotel chain Brown has reached understandings in a deal to acquire Israeli airline Israir Airlines Ltd. for $70 million, one person familiar with the matter who spoke on condition of anonymity told Calcalist.
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A subsidiary of IDB Development Corporation Ltd., a holding company controlled by Argentinian businessman Eduardo Elsztain, Israir offers international flights to Europe as well as domestic flights from Tel Aviv to southern resort town Eilat.
A room in one of Brown's hotels. Photo: Assaf Pinchuk
In its financial reports for the quarter ending September 30, 2018, IDB stated it expects to sell Israir for NIS 225 million ($61.2 million). The company also predicted yearly revenues of $340 million and an EBITDA of $25 million in 2018.
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Founded in 2010, Brown, listed as Brown Ha-Moshava Boutique Hotels Ltd., operates hotels in Tel Aviv, Jerusalem, and Trogir, Croatia. The company previously announced plans to open additional spots in Israel, including one in Eilat.
