Poju Zabludowicz's Tamares Hotels Israel chain is bidding to take over Eilat's Princess hotel when the management contract of Isrotel expires at the end of March 2015, sources inform "Globes." In 2011, the Israel Antitrust Authority prohibited Isrotel from extending its management contract for the Princess hotel because it would harm competition in Eilat, where the group has eight other hotels.
Tamares operates five hotels in Israel: the Daniel Herzliya; the Daniel Dead Sea; West All Suite Boutique Tel Aviv; West All Suite Boutique Ashdod; and the Shizen Resort Boutique and Spa Herzliya but has no hotel in Eilat. The Princess is Eilat's southernmost hotel near the Egyptian border crossing at Taba.
Rimonim Hotels also expressed interest in taking over management of the Princess but the negotiations stalled. Rimonim Hotels CEO Eran Kviatek said, "There were talks but we didn't reach any agreements on the major subjects, so the contacts have been suspended at this stage. We know there are talks with Tamares."
Meanwhile, the 400 Eilat Princess Hotel employees have been summoned to a hearing, prior to dismissal. Isrotel company secretary Yair Sabo said that only a small number of the employees could be taken in by Isrotel's other hotels in Eilat. He said, "It's very sad and regrettable that so many good people will lose their jobs. Nobody has yet checked if Isrotel's presence at the Princess really is hurting competition in the city, and I'm sure it's not doing any harm."
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2015
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