IDB Logo
Israeli IDB to invest in Hilton hotels
Israeli company would join in purchase of two Hilton hotels in England for USD 871.3 million
Israel's Property and Building Corp. said on Sunday it would join in the purchase of two Hilton hotels in England for 463 million pounds (USD 871.3 million).
Property and Building, a subsidiary of holding company IDB Development Corp., will hold 20 percent of the group acquiring the real estate.
Britain's Tonstate Group Ltd. will have 60 percent, and another Israeli company will have 20 percent. The group will receive non-recourse bank loans in the amount of 400 million pounds.
The remaining 63 million pounds will be covered by shareholders' equity, with Property and Building putting up 17.3 million pounds.
The buildings are the Hilton London Metropole, with 1,054 rooms, and the Hilton Birmingham Metropole, with 794 rooms. The hotels are expected to report an operating profit of 39.4 million pounds for 2006.
The buildings will continue to be managed by Hilton under a 30-year agreement. U.S. company Hilton Hotels Corp. bought the hotel assets of its British namesake, Hilton Group, in February.
Shares in Property and Building were up 1.7 percent in early afternoon trade in Tel Aviv, outpacing moderate gains in the broader bourse.
