Isrotel: An old office building in Omonia is converting into a new 5-star hotel

Another five-star hotel, with more than 400 beds and, again, with Israeli investment, is opening in the centre of Athens.

It is one of the old, decommissioned large office buildings in Omonia, covering almost 8,500 sq.m. on 18 Lykourgou and 34 Sokratous Streets. Isrotel, from Tel Aviv, is now converting it into a luxury hotel unit.

The property was previously purchased by the Gnosis Investments scheme (the investment company led by Petros Politis) and then passed under the umbrella of the Israeli shareholders of Aroundtown with the prospect of operating under Brown Hotels.

However, plans for the chain and its expansion have long since changed. Its founders, Leon Avigad and Nitzan Perry, entered into a series of agreements for hotels operating in Greece.

For the property in Lykourgos, in November, the Special Agency for the Promotion and Licensing of Tourist Investments (EYPATE) approved the environmental commitments for the property and changed the initial categorisation from 4* (as intended by Brown) to 5*.

The capacity reduction from 440 to 412 beds was also approved.

The building was constructed in the 1960s, and licensing for its conversion had already started before the pandemic when Brown and the investors showed particular interest in Athens.

The timetable for the operation of Aluma Hotels is expected to be 2025.

Greece and Italy

As far as the expansion of Isrotel itself is concerned, more recently, it has begun to gradually build its presence in Greece, having expressed interest in the European market, including Italy, Portugal, and the United Kingdom.

In fact, Italy and Rome are the next stops for the chain, which recently invested 68 million euros in the acquisition of the Savoy Hotel in September.

The expansion is also done through Aluma Hotels, which will soon, within 2025, have three hotels under its umbrella in Athens: the Skylark, Anise, and Adia. With the new upgraded image, the newly acquired hotel in Rome is expected to be unveiled in 2026.

Stefania Souki is a columnist for New Money. Translated by Paul Antonopoulos.

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