Israel Canada Hotels is currently taking a significant step in its expansion, unveiling a series of strategic deals totaling approximately NIS 200 million in Israel and abroad. This move comes as Israeli tourism recovers from a challenging period, and the chain seeks to reinforce its position as a leading player in the market.
The chain continues to expand in the north of the country, having signed a memorandum of understanding to acquire 50% ownership of the Galilion tourism complex and the Kfar Giladi Hotel. The Galilion complex, located in the Hula Valley, offers 120 guest rooms and suites for couples and families, a spa center, swimming pool, restaurant and wine bar, as well as a conference and event center.
The Kfar Giladi Hotel, located in Kibbutz Kfar Giladi at the foot of the Naftali Mountains in the Upper Galilee, spans about 30 acres of well-maintained green space. The combined value of these two deals is estimated at around NIS 140 million, and the company is expected to manage both hotels and earn ongoing management fees.
In addition, the chain is in advanced negotiations to lease a 307-room hotel in Tiberias for a period of 15 years, with an option for an additional 10 years. The hotel includes extensive public spaces and presents significant potential for tourism activities. According to plans by the chain and the property owners, a joint investment is planned for a comprehensive renovation, positioning the hotel as a family-friendly destination.
Expanding Operations in the South
In southern Israel, Israel Canada Hotels is set to expand its presence through a joint deal in the 42 Degrees project in Eilat. An agreement is expected to be signed with the Karel Group, under which Israel Canada Hotels will invest NIS 1.5 million and join as an equal (50%) shareholder in the management companies of the apartment complex, which includes nine buildings, public areas, a swimming pool, and a gym, operated under a short-term hotel rental model.
This deal complements a previous leasing agreement in which the chain leased a hotel adjacent to the apartment complex. The two components—the hotel and the apartment complex—will be managed separately and offer different vacation experiences based on the type of service provided.
Aggressive Expansion in Greece
On the international front, the company is strengthening its presence in Greece. On July 14, 2025, the company completed the acquisition of a Greek company holding the lease rights to a building on Theatrou Street, adjacent to its Play Theatrou Hotel. The building is expected to undergo renovation and be converted into a 50-room hotel with a restaurant, effectively doubling the number of rooms. This acquisition will allow the Play Theatrou Hotel to expand and upgrade to 110 rooms, making it the largest hotel in the highly sought-after Psiri neighborhood in central Athens.
In addition, Israel Canada Hotels is currently pursuing another expansion move in Greece, as it negotiates the acquisition of lease rights to a central hotel in one of the country’s most desirable areas. The deal is estimated at around 13 million euros. The hotel is expected to become part of the company’s urban portfolio and strengthen its presence in one of Europe’s key tourist destinations—and in Greece in particular.
Reuven Alkas, CEO and partner at Israel Canada Hotels, explains: “These deals are an integral part of implementing our growth strategy and brand consolidation in Israel and abroad. I have no doubt that these excellent hotels will integrate into the chain and contribute to strengthening the company’s business results.”
Currently, Israel Canada Hotels operates 24 hotels in Israel, 11 in Greece, and one in Cyprus, with a total of approximately 3,800 rooms. Upon completion of the new deals, the chain will significantly strengthen its presence in both the Israeli and international markets.