Meitav Pension Fund Invests $22 Million in Israel Canada Hotels

Meitav Pension and Provident Funds is investing 80 million shekels (approximately $22 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 last November.

The investment follows the merger of Israel Canada's hotel arm with DNA, a company also controlled by its owners, Asi Tochmeyer and Barak Rosen. Meitav's shares were allocated at 1.15 shekels each, a 9% premium over the previous day's closing price, valuing Israel Canada Hotels at 1.1 billion shekels, up from its market value of 950 million shekels. The company's stock rose 8% following the announcement.

Prior to Meitav, Harel Insurance Investments and Financial Services acquired a 7.6% stake for 70 million shekels in January. In 2022, Menora Mivtachim Holdings purchased 15% of the company's shares for 88 million shekels when it was still a private subsidiary.

As of late June, Israel Canada Hotels operated 17 hotels in Israel and eight in Greece and Cyprus, totaling around 3,100 rooms. The company expanded last year, partly by acquiring operations from the collapsed Brown Hotels chain, and recently entered the German market, aiming to double its international room count to approximately 2,400.

Israel Canada Hotels is controlled by Israel Canada, holding 51.5% of its shares, and managed by Reuven Alkas, who also owns 9%. The company debuted on the stock exchange in November at a valuation of 1.08 billion shekels, but its stock has since declined 19%. Factors contributing to this include the security situation in Israel, where most of its operations are concentrated, and the location of many hotels in northern Israel and Tel Aviv. In contrast, Fattal Hotels' stock rose 23% during the same period, while Isrotel's increased 9%, and Dan Hotels' stock fell 23%.