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The sale of Moriah Plaza owned by Azorim Tourism Ltd has been completed by the Fattal Hotel chain, belonging to David Fattal.  Azorim Tourism was owned by Boymelgreen Capital Ltd and Azorim Investments at a rate of 25% and 75% respectively.

Less than 3 years after completing the purchase of the company from IDB, Azorim Tourism was sold to David Fattal.  According to reports, the owner of Azorim Tourism, Shaya Boymelgreen was forced to sell as a result of credit difficulties.

With the signing of the deal,12 hotels have been transferred to the control of the Fattal Hotel chain, making it the largest hotel chain in Israel with 30 hotels in Israel and a further 32 overseas.  More recently the Fattal chain has started to enter the boutique brand of hotels, with the ‘Leonardo” soon to open in the Ramat Hahayal business area of Tel Aviv.

Additionally, the chain will include the Leonardo Hotel in Haifa (currently Meridian), a hotel in Beersheva (currently Golden Tulip) and the Basel Hotel in Tel Aviv, which was purchased a year ago and will shortly undergo renovation. 12 new hotels will operate under one of the Fattal brands.

According to the announcement from Fattal, the deal includes a payment of 270 million shekels for the shares and 700 million shekels for the company’s debt.  Financing of the deal will be by way of an additional 10 percent from the Fattal Hotel chain to the Migdal Insurance Company and an increase in ownership to 20 percent.

The Moriah Plaza will lose its Sheraton brand name, owned by the Starwood Group, after Boymelgreen failed to meet the conditions of the franchise.