Alrov Reports 77 Million Shekel Loss in Q2 Amid Market Slowdown and Currency Declines
Alrov Properties and Lodgings, led by Alfred Akirov, saw its Q2 2026 financial results heavily influenced by stock market sentiment rather than real estate or hospitality sales. The company holds a significant equity portfolio, including 13.7% of Clal Insurance shares and a smaller stake in Bank Leumi. The second quarter experienced a halt in the previous upward trend, with Clal Insurance shares rising only about 10%. Consequently, Alrov's securities portfolio profit dropped sharply from 709 million shekels in Q2 2025 to 116 million shekels in Q2 2026, an 84% decrease. For the first half of 2026, the company recorded a profit of 301 million shekels from its portfolio, down from 800 million shekels in the same period in 2025. The current value of Alrov's equity portfolio stands at 3 billion shekels, with Clal shares valued at 2.7 billion shekels and Bank Leumi shares at 277 million shekels.
Alrov operates in Israel, Switzerland (where it owns a public subsidiary), London, Paris, and Amsterdam, managing luxury hotels and 37 income-generating properties in Europe, including office buildings, shopping centers, and industrial facilities. Currency depreciation of the Swiss franc, euro, and British pound against the shekel resulted in a 244 million shekel loss from foreign exchange translation, turning the company’s Q2 profit into a 77 million shekel loss, compared to a 608 million shekel profit in Q2 2025. For the first half of 2026, Alrov posted a profit of 283 million shekels, down from 727 million shekels in the previous year. The company’s market value is 5.3 billion shekels, below its shareholders’ equity of 7.4 billion shekels.
In the hospitality sector, Alrov owns two luxury hotels in Jerusalem, Mamilla and the Tower of David, which recorded an operating loss of 9 million shekels in the first half of 2026 due to stagnant inbound tourism following the "Lion's Roar" military operation. In the same period last year, the hotels had an operating surplus of 8 million shekels, and 43 million shekels for all of 2025. Hotel revenues declined to 305 million shekels in the first half of 2026 from 346 million shekels in the comparable period of 2025.
