Israel Canada Hotels buys German hotel rights in €66 million expansion
Israel Canada Hotels is expanding into Europe and entering Germany for the first time, following the path of Fattal. The Israel Canada subsidiary, which began trading on the Tel Aviv Stock Exchange last November, said it is buying rights in six hotel properties in Germany with about 1,500 rooms for €66 million. The goal is to build a major European operating arm alongside its Israeli business, diversify growth engines, and reduce exposure to security-related shocks that have hurt Israel’s hotel sector.
The company, led by Reuven Elax, is partnering with Kibbutz Kfar Giladi, already one of its Israeli partners. Together they will buy a Berlin property in Charlottenburg, formerly the Excelsior Hotel, with 316 rooms and 12,200 square meters of built area. The building is slated for renovation and reconstruction. The partners will each own 49.4% of the holding company and 50% of the economic rights, pay €18 million in cash, €9 million of it Israel Canada Hotels’ share, and assume €32 million in bank debt. Israel Canada said the total deal value is €50 million. Renovation and rebuilding are expected to cost about €35 million and take roughly two years, after which the company plans to operate a luxury hotel there through Brown Hotels.
In a separate transaction, Israel Canada Hotels agreed to buy rights in four companies operating five hotels in Hamburg, Leipzig, Berlin and Munich, including two in Munich. The properties have 1,179 rooms and are under long-term leases that run until 2042 to 2047. The purchase price is €15.8 million. The deal is being carried out during the insolvency proceedings of the owner, Revo Hospitality Group, and still needs court approval and creditor arrangements. The five hotels are operating, and the companies’ 2025 revenue reached €52 million, with operating profit of €12.2 million and net profit of €11.4 million.
Revo previously operated about 175 hotel properties, mostly in Germany and Austria, but ran into trouble and in early June said it was laying off 450 headquarters employees. As of May, Israel Canada Hotels held 26 hotels in Israel, excluding the Kfar Giladi and Galilee deals and a planned Midtown Jerusalem hotel, plus 13 hotels in Greece, Cyprus and Croatia acquired with Brown Hotels’ business in 2025. The German acquisition is expected to roughly double the company’s overseas room count from about 1,200 to about 2,400, lifting foreign rooms from about 25% to nearly 40% of its total portfolio. It would also establish a third regional base in Germany, alongside Israel, Greece and Cyprus.
