Industry Update
Press Release22 July 1999

Starwood And Koor Acquire Moriah Hotel Chain

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Starwood Hotels & Resorts

Carmel-By-The-Sea, CA -- Starwood Hotels & Resorts Worldwide, owner of the Sheraton, Westin, St. Regis Luxury Collection, Four Points, W and Caesars brands - and Koor Industries, a leading company in Israel, have completed their $76 million acquisition of Radisson Moriah. With the acquisition, Sheraton Israel is now the largest hotel chain in Israel with a total of 12 hotels and 3,200 rooms.

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Koor Industries and Starwood will hold 75 percent and 25 percent respectively of the newly formed company in order to complete the Moriah Hotels acquisition. The Workers Investment Company, previous owners of the chain, has been given the option to sell the remainder of the shares for another $5.5 million.

Combined sales of the new company totaled $112 million last year and are expected to reach $150 million in 2000. The new joint venture company will be the leading hotel chain in Israel, with a variety of four- and five-star deluxe hotels and resorts located in key destinations across the country. In addition, the company will serve as the sole representative of Sheraton in Israel and all its hotels will be linked to the international reservations network.

The Moriah chain has five hotels: the Moriah Plaza Jerusalem with 292 rooms, Moriah Plaza Eilat with 306 rooms, Moriah Plaza Tel Aviv with 265 rooms, Moriah Plaza Tiberias with 265 rooms and Moriah Plaza Dead Sea with 275 rooms.

Sheraton Israel already manages the Four Points brand hotels in Eilat, Red Sea, Jerusalem and Tiberias. The company has an equity interest in and operates the Herods resort in Eilat, along with the Sheraton Jerusalem Plaza, the City Tower business hotel (presently under construction) and the Sea Village Hotel & Vacation Apartments on the Mediterranean shore. For reservations and information: www.traveldiscounts.com (hotels & resorts)

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