Nov. 14–A group of foreign investors is building a seafront hotel in Bat Yam at an investment of NIS 550 million. Incorporated as Topban Ltd., the investors bought the land from a group of diamond merchants four years ago for $20 million (NIS 74 million at the shekel-dollar exchange rate at the end of 2009), after they were unable to move forward on the project.
Two more hotels will be built adjacent to the Sea Hotel, which will be completed in 2017, for a total of 1,200 hotel rooms. The 26-floor 50,000-square meter hotel will have 436 rooms, 40 percent of which the developers plan to sell as holiday apartments. These apartments will be used by their owners for three months of the year, and the rest of the time will be part of the hotel room supply. The developers’ attorney, Ilan Sasson, says that 40 holiday apartments have already been sold to Austrians, Venezuelans, and Americans for NIS 45 million.
“We plan to sell up to 180 rooms. The business plan calls for 30-40 percent of the project’s financing to come from the sale of rights to third parties, and the rest from the owners’ equity,” says Sasson. Prices will range from NIS 1.5 million for a 32-square meter room with a 12-square meter balcony, to NIS 3.35 million for a 64-square meter suite with a 24-square meter balcony and NIS 4.15 million for an 80-square meter suite with a 30-square meter balcony.
The developers’ representative says that he is in talks with European hotel chains to manage the hotel, in which rooms will cost ?220-280 per person per night.
