Israeli Boutique Hotel Chain Wants Its Own Airline
Hotel chain Brown has reached understandings in a deal to acquire Israeli airline Israir for $70 million, according to one person familiar with the matter
Israeli boutique hotel chain Brown has reached understandings in a deal to acquire Israeli airline Israir Airlines Ltd. for $70 million, one person familiar with the matter who spoke on condition of anonymity told Calcalist.
A subsidiary of IDB Development Corporation Ltd., a holding company controlled by Argentinian businessman Eduardo Elsztain, Israir offers international flights to Europe as well as domestic flights from Tel Aviv to southern resort town Eilat.
In its financial reports for the quarter ending September 30, 2018, IDB stated it expects to sell Israir for NIS 225 million ($61.2 million). The company also predicted yearly revenues of $340 million and an EBITDA of $25 million in 2018.
Founded in 2010, Brown, listed as Brown Ha-Moshava Boutique Hotels Ltd., operates hotels in Tel Aviv, Jerusalem, and Trogir, Croatia. The company previously announced plans to open additional spots in Israel, including one in Eilat.