Brown Hotels, controlled by Israel Canada Group, is expanding its European footprint and entering the German hotel market for the first time, adding six hotels totaling more than 1,500 rooms.
1+At the center of the deal is the acquisition of the Excelsior Hotel Berlin in partnership with Kibbutz Kfar Giladi. The historic hotel in the Charlottenburg district has been inactive in recent years and will undergo renovation and conversion back into an operating hotel. After the renovation, it will include approximately 316 rooms and suites, along with public spaces, restaurants, and work areas. The renovation is expected to take about two years.
The acquisition price for the hotel stands at around €50 million. After completing the renovation, the chain plans to operate the property itself. At the same time, the company signed agreements to acquire five additional operating hotels in Germany, currently active in various cities across the country. The hotels were purchased through a local insolvency proceeding for approximately €15.8 million.
The hotels included in the deal are:
H4 Hotel München Messe – 331 rooms
H2 Hotel München Messe – 205 rooms
H4 Hotel Leipzig – 291 rooms
H4 Hotel Hamburg Bergedorf – 201 rooms
Centro Park Hotel Berlin – 151 rooms
Once the deals close, the chain’s operations in Germany are expected to expand to approximately 6,250 rooms across roughly 47 hotels in total. The chain currently operates 41 additional hotels in Israel and European countries including Greece, Cyprus, and Croatia.
1+The hotel industry has seen a clear trend of Israeli expansion abroad in recent years. Alongside Brown Hotels, other major Israeli chains already maintain significant international operations, including Fattal and Isrotel, which have established and operate hotels in several European countries and around the world. The entry into Germany comes in a large and fragmented hotel market dominated by international chains alongside independent hotels, primarily in major cities like Berlin, Munich, and Hamburg. The recent deals reflect a trend of acquiring existing properties and upgrading them, while expanding into established European markets.