Brown Hotels Accelerates European Growth with Major Germany Acquisition

Brown Hotels by Israel Canada is making one of the most significant moves in its history, accelerating its expansion in Europe. The company announced today its official entry into Germany’s hospitality market through the acquisition of six hotels and about 1,500 rooms in central locations across the country.

The strategic move is expected to make Germany one of the chain’s key operating markets outside Israel and significantly expand its footprint in Western Europe.

Excelsior Berlin: the Crown Jewel

At the center of the deal is the acquisition of the Excelsior Berlin hotel, one of the best-known historic hotels in the German capital, as part of a partnership with Kibbutz Kfar Giladi.

The hotel, located in the upscale Charlottenburg district near the city’s main commercial, cultural and tourism areas, has not been active in recent years and will undergo a major renovation and redevelopment process over the coming years.

The project will include 316 rooms and suites, advanced workspaces, large-scale hospitality areas, restaurants, bars and a rooftop floor with panoramic views of the city.

Israeli designer Sahar Zafrir, considered one of the leading figures in hospitality design, will oversee the hotel’s design.

The deal is estimated at about 50 million euros, and Brown Hotels will exclusively manage and operate the property after the project is completed.

From right: Reuven Elex, CEO of Israel Canada Hotels; Doron Lavi, chairman of Kibbutz Kfar Giladi; Tamir Abrahams, CEO of tourism and development at Kibbutz Kfar Giladi; Barak Rozen, one of the owners of Israel Canada; and Ofer Peled, chairman of business at Kibbutz Kfar Giladi

Five Additional Hotels in Germany’s Key Cities

At the same time, the company signed conditional agreements to acquire the operations of five additional active hotels in Germany, comprising 1,179 rooms in total, for about 15.8 million euros.

The transaction was carried out במסגרת insolvency proceedings in Germany and is considered an unusual business opportunity. According to the company, it was closed at a multiple of only about 1.5 on the hotels’ operating profit in 2025.

The acquired hotels are located in four of Germany’s most important cities:

Munich

-H4 Hotel München Messe – 331 rooms

-H2 Hotel München Messe – 205 rooms

Leipzig

-H4 Hotel Leipzig – 291 rooms

Hamburg

-H4 Hotel Hamburg Bergedorf – 201 rooms

Berlin

-Centro Park Hotel Berlin – 151 rooms

"A Strategic Anchor From Which We Will Grow"

Reuven Elkes, CEO of Brown Hotels, part of Israel Canada Hotels, described the transacti  as one of the most significant milestones in the company's history:

"Today marks a major milestone in Brown Hotels’ international development. Our entry into the German market is a key part of the long-term growth strategy we have outlined in recent years. The acquisition of the iconic Excelsior Hotel in Berlin, in partnership with Kibbutz Kfar Giladi, a strategic partner that shares and believes in our vision-represents a significant leap forward for the brand."

Reuven Elex. Photo: Yehuda Ben Itach

Brown Hotels, which began as an Israeli boutique hospitality brand, has in recent years become an international player with operations in Israel, Greece, Cyprus and Croatia.

The chain currently operates 41 hotels and 4,752 rooms under five different collections, including urban hotels, resorts, beach hotels, boutique hotels, nature vacation villages and luxury hotels.

Its entry into Germany, Europe’s largest economy and one of the world’s most important tourism markets, marks a transition for Brown and Israel Canada from regional establishment to substantial European expansion, with ambitions to become in the coming years one of the most prominent Israeli hospitality brands on the international stage.