| Delek in talks to buy stake in UK Marriot hotel chain - Delek Belron International will invest NIS 1.46-1.63 billion in the NIS 8.6b deal
Delek Belron International Ltd. (TASE:DLKI.B1) the international
real estate arm of Delek Real Estate Ltd. (TASE: DLKR) is
in advanced stages of negotiations for the acquisition of
17-19 percent of the shares of a foreign company which owns
47 hotels in the UK. The chain has been run by the Marriot
International chain (NYSE: MAR) for 30 years. The hotels
will be purchased from the Royal Bank of Scotland (LSE:RBS)
and from the Marriot chain.
The chain is valued at NIS 8.6 billion. Delek Belron will
invest NIS 1.46-1.63 billion. Delek reported that the hotels
produce an average net annual income of NIS 640 million.
The deal will be led by Delek Belron together with businessman
Yigal Ahouvi and the Irish fund Queenland.
Delek Belron today reported a sharp 123 percent rise in
its profits for January-September to NIS 318.4 million,
from NIS 142.5 million in the corresponding period of 2005
and NIS 218 for all of 2005.
In the third quarter alone, the company posted a profit
of NIS 51.4 million compared with NIS 77.8 million the corresponding
quarter of 2005. It reported that in the third quarter of
2005 it included NIS 68.5 million in revenue from a non-recurring
event as a result of profit taking on some of its UK assets.
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