Dan Hotels in dramatic recovery: massive losses almost wiped out, revenues surged

Following a year of challenges in 2025 that ended in losses, and a difficult start to 2026, Dan Hotels, controlled by businessman Micky Federmann, is showing a dramatic recovery in the second quarter of the year.

Following a difficult start to the year in the shadow of the security situation and Operation "Lion's Roar," which led to a loss of about 60.5 million shekels in the first quarter, the chain finished the period from April to June with a loss of only about 2.3 million shekels. However, in the corresponding quarter last year, the company recorded a profit of about 5.4 million shekels.

The group's revenues in the second quarter totaled approximately 418.9 million shekels, an increase of 10.8% compared to 378.2 million shekels in the same period of 2025. Revenues from hotel operations jumped by 13.3% to about 318.4 million shekels, mainly due to the addition of the Nomo SoHo hotel in New York, which was acquired by the chain at the beginning of the year.

There was also an improvement on the operational side: the operating profit before depreciation and financing of hotel operations totaled about 57.9 million shekels, compared to 39.3 million shekels in the corresponding quarter. The company notes that the comparison was also affected by Operation "With the Lion," which took place in June 2025 and harmed hotel operations.

However, financing expenses continue to weigh on Dan. Net financing expenses jumped to about 25.8 million shekels, compared to about 9.9 million shekels last year. Interest expenses to banking corporations almost doubled and reached about 10.4 million shekels.

For the first half of the year, Dan's revenues totaled about 714.4 million shekels, an increase of about 6%, but the company recorded a loss of about 62.8 million shekels. As of the end of June, the company's equity stood at about 1.2 billion shekels.