Israeli Hotels Firm Israel Canada Welcomes New Major Investor

Meitav Pension and Provident Funds is investing NIS 80 million in Israel Canada Hotels, acquiring a 7.2% stake and becoming a significant shareholder. This marks the second institutional investment in the hotel company since it became publicly traded in November, following the merger of Israel Canada's hotel arm with DNA company.

The investment was made at NIS 1.15 per share, a 9% premium over the previous day's closing price, valuing the company at NIS 1.1 billion, compared to its market cap of NIS 950 million. Meitav's investment follows similar moves by Harel Insurance, which invested NIS 70 million for a 7.6% stake in January, and Menora Mivtachim, which acquired 15% for NIS 88 million in 2022 when the company was private.

As of June, Israel Canada Hotels operated 17 hotels in Israel and eight abroad in Greece and Cyprus, totaling approximately 3,100 rooms. The company recently expanded into Germany, aiming to double its international room count to about 2,400. This expansion, coupled with the recovery from the previous conflict with Iran, led to a 66% surge in second-quarter revenues to NIS 114 million, with EBITDA rising 115% to NIS 18 million.

However, the recent conflict with Iran impacted the first half of the year. Revenues increased 32% to NIS 164 million, but EBITDA fell 45% to NIS 9.4 million. Israel Canada Hotels, controlled by Israel Canada with a 51.5% stake, has seen its stock decline 19% since its public debut due to security concerns, particularly its exposure to northern Israel and Tel Aviv. In contrast, Fattal's stock rose 23% and Isrotel's rose 9% during the same period, while Dan Hotels' stock fell 23%.