Israel Canada Hotels signed an agreement with Kibbutz Kfar Giladi on Tuesday to acquire half ownership of two northern Israeli hotels, in deals amounting to approximately NIS 142 million.

Israel Canada Hotels purchased a 50% stake in both the Galilion Hotel and the Kfar Giladi Hotel, both in Israel's Upper Galilee region.

The total sum of NIS 142 million includes NIS 77.5 million for the Kfar Giladi Hotel and NIS 65 million for the Galilion Hotel.

The transactions are part of the company’s broader strategy to expand its footprint in the hospitality market, particularly in areas popular for leisure tourism, it said in a statement.

The hotels will join Israel Canada Hotels’ existing northern portfolio, which includes the Galei Kinneret Hotel and the Lake House Hotel on the shores of the Sea of Galilee, as well as the Nofei Gonen Holiday Village and Vered Hagalil Holiday Farm.

The Galilion Hotel, located in the Hula Valley, features 120 rooms, a spa, a swimming pool, conference facilities, a restaurant, and an adjacent commercial center.

The Kfar Giladi Hotel, in the Upper Galilee, offers 158 rooms, an indoor swimming pool and a seasonal outdoor pool, a fitness room, a hair salon, and a large, modern conference center.

The overall consideration for the acquisitions will total approximately NIS 142 million, NIS 77.5 million allocated to the Kfar Giladi Hotel and NIS 65 million to the Galilion Hotel. Subject to the required regulatory approvals, management of the hotels will be transferred to Israel Canada Hotels.

Reuven Elkes, CEO of Israel Canada Hotels, said the agreements "represent another step in implementing the growth strategy we have set for ourselves, with a focus on strengthening our brands in Israel and abroad.

'"Just last week, we received the necessary approval from the Competition Authority for the agreement we signed to manage The George Tel Aviv," Elkes added. "We see the current transactions as an opportunity to reinforce our brand and increase the group’s share of both domestic and international tourism.”

CEO of Kfar Giladi Tourism Tamir Abrahams noted that “the entry of Israel Canada Hotels as a partner in the Kfar Giladi and Galilion hotels is a significant move for us.

"It will enable the continued development and enhancement of the hotels while preserving their values, character, and unique heritage. We view this step as an opportunity to strengthen the central tourism anchor of Kibbutz Kfar Giladi and the Upper Galilee, and to deepen its contribution to tourism in northern Israel.”