Azrieli real estate will purchase Har Zion Hotel in Jerusalem, for NIS 275 million

Azrieli real estate company signed agreement to purchase Har Zion Hotel in Jerusalem, for NIS 275 million. Azrieli will acquire the hotel from Shlomo Eliyahu (owner of Migdal Group), as part of his private business. About six months ago, Eliyahu was in talks to sell the hotel to David Zisser, at par value Of NIS 350 million.The completion of the transaction is conditional upon receipt of approval by the Competition Commissioner within 90 days from the date of signing the agreement.
Located on the outskirts of the Old City of West Jerusalem, the Mount Zion now has 137 rooms, shops, restaurants, spas, health clubs, conference and event halls, a swimming pool and a museum, on a 13-acre plot of land. The total area of ​​the building currently stands at 111.6 thousand sq.m.. The transaction includes building rights amounting to approximately 22.4 thousand sq. M.
The group intends to continue to operate the hotel in its current format, while at the same time renovating the hotel and working to realize the additional building rights to expand it, which will include, among other things, up to 400 rooms and an underground car park with some 380 parking spaces. The total cost of renovating and expanding the hotel is estimated at NIS 500-600 million, and includes the reconstruction and preservation of some of the existing buildings.