Delek Real Estate, the Israeli property company that is listed on London’s Alternative Investment Market, is considering the options for its £1.5bn worth of hotel property.
A spin-off of its hotel interests or the creation of a hotel REIT are all possibilities for its holdings which include stakes in 47 UK Marriotts and 16 UK Hiltons.
The company, together with Igal Ahouvi, bought a Swiss retail portfolio at the end of July for CHF1.5bn (US$1.3bn), the largest ever sold in that country.
The news about the possible changes in the hotel interests came in interview with CEO Ilik Rozanski, the highest paid director in Israel in 2006.
The total property portfolio of Delek is worth about £3.5bn and includes the UK’s National Car Parks, the Adidas HQ in Germany and 73 petrol stations in Finland.