The agreement provides that Israel Canada will assume the lease agreements at Brown's 8 properties with approximately 1,076 rooms throughout Greece, as well as at Brown's 10 properties in Tel Aviv and Jerusalem with approximately 779 rooms. In addition, the agreement includes the hosting system, the website, the forms and the Brown Club.
Israel Canada will pay an amount of approximately NIS 100 million (€23.66 million). Of this approximately 27 million NIS (6.38 million) will be paid in cash and the remainder through an assignment/transfer of BROWN's debt to Canada.
It is noted that a total of approximately NIS 10 million (2.36 million) of its amount has been deposited as a down payment at the time of signing
The company will then be absorbed by the publicly traded DNA Group, which is controlled by Israelis Barak Rosen and Asi Touchmair, who also control Israel Canada.
Israel Canada is one of the largest real estate companies in Israel, with a portfolio that includes offices, shopping centers, hotels and residential properties. Before the deal it had 15 hotels – 12 in Israel and three in Greece (Play Psyri, Play Theatrou, Play Paros). After the acquisition, its potential will rise to a total of 3,600 rooms.
Brown Hotels Collection has suffered from weak travel demand across Israel linked to the ongoing conflict in Gaza. The drop in inbound and domestic tourism hit all of Israel's hotels, which saw their revenue drop to zero despite the government's efforts to secure some of the accommodation for the roughly 100,000 displaced and refugees from the war zones.
Brown Hotels Collection was founded in 2010 by Leon Avigad and Nitzan Perry and already in its portfolio has 10 hotels, of which 4 in Athens, in points and neighborhoods of the center, 6 resorts (in Chania, Agios Theodoros, Eretria, Chalkida, Loutraki and Corfu). After five years of operation in Greece and expansion in various regions of the country, Brown Hotels has created a network consisting of approximately 4,000 rooms and 2,000 employees.
In addition to Greece and Israel, Brown has hotels in Germany, Croatia and Cyprus.
