Isrotel: The €100 mil. investment plan and the expansion of Aluma Hotels & Resorts in Greece

With an ambitious investment of 100 million euros in Greece and with an eye on expanding in Europe, starting with the opening of two hotels in the center of Rome, the Israeli-owned Isrotel, one of the largest hotel chains in Israel, officially begins its expansion into the European market. Greece is the springboard for its brand, Aluma Hotels & Resorts, while this strategic move marks a new era for the company, which seeks to diversify its portfolio and reduce risk, placing significant capital in the Greek tourism industry and expanding its footprint on the European continent.

Athens in the spotlight: Five hotels with the Hilton brand

Aluma Hotels & Resorts has already developed an impressive portfolio of five hotels in Athens and Thessaloniki, with the capital being the focus of its initial activity.

Just a few days ago, the Adia Aluma Athens Curio Collection by Hilton, the chain’s flagship hotel in Athens, officially opened. This 5-star hotel, with a capacity of 215 rooms, is housed in the former tax authority building on 18 Lykourgou Street. The hotel’s manager, Yiannis Ziakos, expressed his satisfaction with the dynamic launch, noting that the occupancy rate for July is already at 60%.

In addition to Adia, Aluma Hotels & Resorts’ portfolio also includes two units acquired from Brown Hotels, also of Israeli interest. These are the 63-room Anise (formerly Brown Spices) and the 199-room Skylark (formerly Lighthouse). Skylark, formerly La Mirage, was a long-term lease to Brown Hotels from the Armed Forces Real Estate Development Service. Both hotels are set to join the Hilton network, specifically the Tapestry Collection.

The chain’s fourth hotel in Athens will be located next to Anise, on Evripidou Street. The redevelopment of the office building that will house this new unit is expected to begin soon and will also carry Hilton’s Tapestry brand.

Aluma Hotels CEO Moshe Ben Hayun highlighted Athens’ strategic importance as a year-round destination, noting the radical transformation of the city center over the past six years.

Expansion in Thessaloniki and island destinations

Aluma Hotels & Resorts’ expansion is not limited to Athens. In Thessaloniki, the chain has already launched the redevelopment of the historic former “Vienna” hotel at 2-4 Egnatia Street, a project initially undertaken by Brown Hotels. The reconstruction work of the property, which was built between 1929 and 1931, is expected to begin by the end of the year. Aluma executives are currently considering whether the hotel will be a 4- or 5-star property.

Beyond the two major cities, the international chain’s executives are preparing the ground for the expansion of the Aluma brand to island destinations in the country, with Crete, Corfu, and Rhodes as the main destinations.

What is Isrotel

Founded in 1980 by David Lewis, Isrotel is one of the largest hotel chains in Israel by number of beds. The publicly traded company, headquartered in Tel Aviv and employing over 6,000 people, has a portfolio of 25 hotels in central locations across Israel, with the majority located in the city of Eilat. Expansion outside Israel is now a strategic goal to reduce risk and position itself in new markets. “Greece is the most logical choice, as it is a much larger market than Israel, but very close. And from here, we are gradually moving into the rest of Europe, with the next step being the opening of two hotels in the center of Rome,” said Mr. Moshe Ben Hayun.

An important “ally” of Isrotel in this investment effort is reportedly the Dayan family, one of the richest in Israel, with strong activity in the real estate sector and a presence in Germany and the United Kingdom. The Dayan family became widely known in Greece through its participation, through Vivion Investments, in the HRADF competition for the development of part of the former American base in Gournes, Heraklion, Crete.

Isrotel’s entry and expansion into the Greek market, through Aluma Hotels & Resorts, with the support of Hilton, is expected to further strengthen Greek tourism, adding new high-end units and contributing to attracting visitors throughout the year.