Excelsior Berlin hotel facade rendering courtesy of Sz Design Brown Hotels enters Germany
Brown Hotels, part of Israel Canada, is making one of the most significant moves in its history as it accelerates its expansion in Europe. The company announced today its official entry into the German hotel market through the acquisition of six hotels and about 1,500 rooms in central locations across the country.
The broad strategic move is expected to make Germany one of the chain's main operating markets outside Israel and significantly expand its footprint in Western Europe.
Excelsior Berlin: the crown jewel
At the heart of the deal is the acquisition of Excelsior Berlin, one of the best-known and 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 hubs, has not been active in recent years and will undergo a major renovation and reconstruction process in the coming years.
The project will include 316 rooms and suites, advanced workspaces, large hospitality areas, restaurants, bars, and a rooftop floor with panoramic views of the city.
The hotel will be designed by Israeli designer Sahar Zafrir, who is considered one of the leading names in the hospitality design sector.
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 Elkes, CEO of Israel Canada Hotels; Doron Lavi, chairman of Kibbutz Kfar Giladi; Tamir Abrahams, CEO of Tourism and Development at Kibbutz Kfar Giladi; Barak Rosen, one of the owners of Israel Canada; and Ofer Peled, chairman of business at Kibbutz Kfar GiladiFive more 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, together totaling 1,179 rooms, for about 15.8 million euros.
The transaction was carried out במסגרת insolvency proceedings in Germany and is considered an exceptional business opportunity. According to the company, it was closed at a multiple of about 1.5 times the hotels' operating profit for 2025.
The hotels being acquired 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 for future growth
Reuven Elkes, CEO of Brown Hotels, described the move as one of the most important milestones in the company's history and said: "אנו מציינים היום אבן דרך משמעותית בהתפתחות הבינלאומית של הרשת. הכניסה לשוק הגרמני מהווה חלק מאסטרטגיית הצמיחה ארוכת הטווח עליה הצהרנו בעבר. רכישת מלון אקסלסיור המיתולוגי בברלין, בשותפות עם קיבוץ כפר גלעדי – שותף אסטרטגי בעל אמון רב בחזון שלנו – מהווה קפיצה משמעותית עבור הרשת."
He said Excelsior is not just another asset in the company's portfolio.
"אקסלסיור ברלין הוא לא רק מלון שאנחנו רוכשים, הוא עוגן אסטרטגי שממנו נמשיך לבנות את הפעילות שלנו בגרמניה. במקביל, צירופם של חמישה מלונות פעילים נוספים במינכן, המבורג ולייפציג יוצר עבורנו פלטפורמת צמיחה רחבת היקף שתאפשר להמשיך ולהתרחב בגרמניה ובמערב אירופה בכלל."
Reuven Elkes. Photo: Yehuda Ben YitahOn the way to becoming a major European player
Brown Hotels, which began as an Israeli boutique hotel brand, has in recent years become an international player with operations in Israel, Greece, Cyprus, and Croatia.
Today, the chain 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.
The move into Germany, Europe's largest economy and one of the world's most important tourism markets, marks Brown Hotels' and Israel Canada's shift from regional consolidation to significant European expansion, with ambitions to become one of the leading Israeli hospitality brands on the international stage in the coming years.