In a groundbreaking move, Dan Hotels revealed on Monday its strategic alliance with Electra Power, marking a pivotal step towards sustainability in the Israeli hospitality sector. Under the terms of the agreement, Electra Power, a key player in the energy industry, will exclusively provide the prominent Israeli hotel chain with green electricity sourced from renewable energy outlets.
The 10-year deal will see Dan Hotels committing to purchasing up to 75% of its entire network's electricity consumption from Electra Power. The estimated value of the agreement is set between 300-350 million NIS.
Scheduled to take effect on March 1, 2024, this initiative positions Dan Hotels as a trailblazer in Israel's hotel industry, becoming the first hotel chain to convert the majority of its electricity consumption to renewable energy sources.
Following economic trends
"The Dan Hotels chain works hard to promote sustainable energy, preserve the quality of the environment, reduce greenhouse gas emissions and convert our electricity consumption to greener, environmental and cleaner sources,” noted Ron Federman, Vice President of Business Development at Dan Hotels. He cited a “trend in the Israeli economy” as a cause for the deal’s materialization.
“We are proud to become the first hotel chain in Israel to enter into this type of agreement, which will allow us to convert most of the chain's electricity consumption to 'green' electricity and will also allow a significant reduction in the network's annual electricity costs,” he added.
Amit Fragment, Deputy CEO of Electra Power, expressed gratitude for the partnership and highlighted the significance of the collaboration in realizing the company's strategic vision. "We are honored to be chosen as the electricity supplier for the Dan Hotels chain. This monumental agreement aligns seamlessly with our business strategy to emerge as a premier provider of electricity to households and strategic clients in Israel, contributing to our overall commitment to sustainable practices."