| Online: | |
| Visits: | |
| Stories: |
| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Tender To Establish A National Chain Of 5 Budget Hotels In Israel
FOR THE FIRST TIME, THE ISRAEL LAND AUTHORITY AND THE TOURISM MINISTRY TO
PUBLISH A TENDER TO ESTABLISH A NATIONAL CHAIN OF 5 BUDGET HOTELS – AN
ADDITION OF NEARLY 1000 HOTEL ROOMS
Tourism Minister Yariv Levin: “The option of establishing a budget hotel
chain in various locations around Israel will encourage international hotel
chains to invest and build in Israel. This will add to the supply of hotel
rooms at a budget level, thereby offering cheaper vacations for families and
FITs and encouraging tourists to stay in Israel for longer periods – which
will ultimately lead to cheaper vacations in Israel.”
Adiel Shomron, Acting Director, Israel Land Authority: “This is the first
time that we are marketing land in one bundle without fixing a minimum price
in order to allow one entrepreneur to win and build five budget hotels to
internationally-recognized standards so that families and FITs can enjoy
hotel accommodation at an affordable price.”
Tourism Ministry Jerusalem, December 9, 2015 – A unique tender – the first
of its type- is to be published in the coming days by the Israel Land
Authority and the Tourism Ministry, which includes the acquisition of lease
rights for five plots designated for hotels, located throughout the country,
in order to establish a chain of budget hotels.
In keeping with Tourism Ministry policy to lower the price of vacationing in
Israel by, among others, increasing the supply of budget hotel rooms and
creating competition in the hospitality market, the ministry has been
working for some time to facilitate budget hotel chains to build a large
number of inexpensive hotel rooms throughout the country. The tender is also
in line with a worldwide trend in the hotel industry, in which international
chains (such as for example Hilton and Carlton) establish budget brands.
There are hundreds of budget hotel brands worldwide, and the ministry hopes
that the tender will generate international interest in entering the Israeli
market.
The hotels will be built in the following areas:
Eilat – 150 rooms in the center of the city (Mafiya district)
Mizpe Ramon – 100 rooms in the Spice Quarter
Dead Sea – 300 rooms in Ein Bokek
Kiryat Gat – 100 rooms near the northern entrance to the city
Nazareth – 200 rooms near the northern entrance to the city
The tender is only applicable for entrepreneurs who will receive a
recommendation from the Tourism Ministry. First, the winning company will
sign a five year contract for the development of five hotels, and following
this, lease agreements will be signed for 49 years.
Planning and construction of the hotels will be carried out in accordance
with the physical standards for planning and classification of tourist
accommodation facilities of the Tourism Ministry. The entrepreneur will have
flexibility regarding the mix of room types (double, suite, studio) in every
hotel up to a maximum of 40% of total hotel rooms for studios and suites.
This, instead of the 20% as defined in the physical standards.
The entrepreneur must commit to at least 100 rooms of C or D Tourism
Ministry classification. For the remaining building rights, the entrepreneur
can build the hotel to another, higher standard in accordance with the
physical standards for planning and classification of tourist accommodation
facilities of the Tourism Ministry. The entrepreneur will not be able to
sell hospitality units.
According to the Tourism Ministry, the benefits in building a budget hotel
chain at one time, as opposed to building an individual hotel are, among
others: reduced building costs, reduced subcontracting costs and reduced
marketing costs. These will all lead to lower prices. Another advantage is
for the tourist to extend his stay in the country, with a package that
includes several hotels together throughout Israel.
Source: http://www.imra.org.il/story.php3?id=69233
