Isrotel in surprising reports: Net profit jumped by 50% despite the war
Despite the impact of the 'Lion's Roar' war at the beginning of the year, the hotel chain presents exceptionally strong financial results with revenues totaling hundreds of millions of shekels.
Isrotel, one of the leading hotel chains in Israel, has released its financial reports for the second quarter and the first half of 2026.
The company reported a strong second quarter, with net profit jumping by approximately 50% to 82 million NIS. Revenues grew by 12% to 608 million NIS, gross profit increased by 24% to 204 million NIS, and operating profit rose by 43% to 124 million NIS compared to the same period last year.
Q2 2026 Highlights
The group's revenues rose by 12% to 607.5 million NIS (compared to 542.1 million last year). Gross profit reached 203.8 million NIS, with the gross profit margin rising to 33.5% (up from 30.4%). Operating profit increased to 124.2 million NIS, representing an operating margin of 20.4%.
First Half 2026 Results
Revenues for the first half of the year totaled 932.3 million NIS, a 2% increase over the same period last year. Gross profit stood at 231.2 million NIS, operating profit at 92.1 million NIS, and net profit at 47.1 million NIS.
Financing expenses rose to 32 million NIS (compared to 18 million previously), primarily due to exchange rate differences on Euro balances. Cash flow from current operations reached 179.9 million NIS, and the company's equity totaled 2.76 billion NIS.
Isrotel CEO Lior Raviv stated:
"We are presenting an excellent quarter with strong growth in revenues and net profit. Following the exceptional impact of the 'Lion's Roar' war earlier this year, Isrotel has once again proven its operational resilience and brand strength in a challenging business environment. We continue to enjoy high demand from the Israeli public, particularly for our exclusive hotels and properties in the south."
The company continues to advance its growth strategy in Israel and Europe, including the development of new hotels, the expansion of the Aluma brand, and the continuous improvement of existing assets.
