Ahouvi and Delek buying 16 Hilton hotels in Great Britain

November 25, 2005 01:34
2 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday. The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks. Reports in the Hebrew press Thursday speculated that Ahouvi and Rozanski were in talks with Israel Phoenix Assurance toward bringing in as a partner in the deal. Delek Real Estate's official notices to the Tel Aviv Stock Exchange Thursday, however, continued to claim that the company was still only "examining joining the deal." Delek told the Tel Aviv Stock Exchange that its part in the deal could range from 19% to 30%. Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around 5.4 million yearly from the management contracts on the original 15. Funding for the initial purchase was provided by the Royal Bank of Scotland. Included in the deal were the Hilton at Gatwick Airport, Hilton London Olympia on Kensington High Street, and several more ranging from Aberdeen, Scotland to Bristol, England. The sixteenth is located at Edinburgh Airport. The 16 hotels contain a total of 3,100 rooms. The first fifteen were sold for 382.4 million, 12% above their net book value of 341.4 million, Hilton said. Proceeds from the sale would be used initially to pay the chain's debts. Hilton International intends to sell further hotels valued in excess of 400m., including the Hilton London Metropole and Hilton Birmingham Metropole.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Jisr az-Zarq
April 3, 2014
Residents of Jisr az-Zarqa beckon Israel Trail hikers to enjoy their town


Cookie Settings