Brown Hotels announced this morning that it has filed a debt settlement proposal in court, based on Israel Canada Hotels’ purchase offer. As part of the deal, Israel Canada Hotels will acquire most of Brown Hotels’ business operations in Israel, including hotels in Tel Aviv and Jerusalem, the Brown brand rights, the customer loyalty club, digital assets, and the company’s website — all free of prior debts. The deal also includes the purchase of the chain’s operations in Greece.
The acquisition will enable Israel Canada Hotels to integrate the business operations of 10 hotels in Israel (approximately 930 rooms) and 8 hotels in Greece (approximately 1,000 rooms). Overall, following the transaction, the company will double the number of hotel rooms under its management, operating approximately 3,600 rooms across Israel and internationally.
The agreement’s terms include regulatory approvals, such as clearance from the Antitrust Authority. As part of the deal, Israel Canada Hotels will pay approximately NIS 38.5 million in cash and assume an additional debt of approximately NIS 74 million to cover Brown’s financial obligations to various institutions.
Reuven Elkes, partner and CEO of Israel Canada Hotels, expressed confidence in the deal, stating: “We have reached an agreement with Brown Hotels and are confident that the court and the Antitrust Authority will approve the transaction. This deal presents a unique opportunity to expand business operations, enhance service quality, and penetrate new markets while leveraging Israel Canada Hotels’ strong management infrastructure.”
Elkes added that the company plans to continue expanding domestically and internationally, focusing on developing its brands and building advanced technological infrastructure.
Israel Canada Hotels was represented in the transaction by attorneys Levi Amitai, Tamar Luz, Limor Masika Zilberstein, and Shiran Alwas from the law firm Goldfarb Gross Seligman & Co.