The Federmann Family: Dan Hotels, Elbit Systems, and the Empire Behind Both

The Builders | Olam.business

Dan Hotels is Israel's oldest hospitality brand, founded in 1947 when brothers Yekutiel and Shmuel Federmann bought a Tel Aviv guesthouse called the Kaete Dan. Nearly eight decades later, the same family, now led by Michael "Mikey" Federmann (born September 9, 1943, Haifa), controls both the hotel chain and Elbit Systems, Israel's largest defense contractor, through the private holding company Federmann Enterprises.

At a Glance

How Did Dan Hotels Become Israel's Oldest Hotel Brand?

In 1947, brothers Yekutiel ("Ksil") and Shmuel Federmann bought the Kaete Dan, a small guesthouse on the Tel Aviv seafront. Over the following decades the business grew into a national chain. In 1989, the brothers transferred day-to-day responsibility to the second generation: Yekutiel's son Michael was appointed chairman, and Shmuel's son Ami became vice chairman, roles both still hold today. The chain's flagship property, the King David Hotel in Jerusalem, has hosted heads of state and diplomats on official Israeli government visits since its 1932 founding, including US President Donald Trump and Indian Prime Minister Narendra Modi.

Dan Hotels has recently pushed beyond its historically Israel-centered portfolio: a first India property opened in Bengaluru, and in October 2025 the chain acquired the NoMo SoHo hotel in New York, an unusual move for a portfolio that has otherwise been built almost entirely around Israeli properties. The war that began in October 2023 has weighed on the core business; company management has said the conflict materially reduced inbound tourism to Israel through 2025, with an ongoing negative effect expected into 2026, and reported that the Mary's Well Hotel in Nazareth and the Dan Boutique Hotel in Jerusalem remained closed as of early 2026, with reopening expected in the first half of the year.

Who Is Michael Federmann and How Did He Take Over Elbit?

Michael Federmann was born on September 9, 1943, in Haifa, to Yekutiel and Bella Federmann. He earned a BA in economics and political science and later an MBA, both from the Hebrew University of Jerusalem, and served in the IDF's elite Sayeret Matkal unit, where he was a member of Ehud Barak's unit — a relationship the two have maintained over the following decades, including Federmann's financial support for Barak's political campaigns and civilian initiatives, and Federmann-funded academic centers such as the Federmann Cyber Security Center at the Hebrew University's School of Engineering and Computer Science.

The Federmann family's route into Elbit Systems ran through El-Op, an Israeli electro-optics company the family acquired full ownership of in 1992 for $20 million. El-Op merged with Elbit Systems in a 1998-2000 share-swap transaction, roughly doubling Elbit's size, and Michael Federmann became chairman of the combined company. Elbit had been founded in 1966 in Haifa as an Israeli defense electronics manufacturer; under Federmann's chairmanship and alongside CEO David Ackerman, the company grew roughly 700% over the following decade through an aggressive global acquisition strategy, including the 2018 acquisition of IMI Systems that brought ammunition and ground-systems manufacturing into the Elbit portfolio. Federmann chaired Elbit's board continuously from 2000 until 2023. Today Federmann Enterprises controls approximately 25.7-41.5% of Elbit depending on measurement date and method (through Michael Federmann, his children, and his sister Irit Federmann-Landau), and the company's post-October 7 order backlog, driven by the global surge in defense spending from the wars in Ukraine and the Middle East, reached $28-30 billion-plus in 2025 on revenue of roughly $7.9-8 billion.

Why Is the Federmann Family's Controlling Position Unusual?

Federmann's economic position sits at an unusual intersection of Israeli industrial scale and family-controlled corporate governance. Among large Israeli companies dual-listed on Nasdaq, Elbit is one of the few with a long-tenured controlling shareholder; most other Nasdaq-listed Israeli companies operate with substantially more diluted ownership. The Federmann family's ability to sustain a multi-decade strategic posture at the chairman level — across multiple Israeli political cycles, defense-spending environments, and international cycles — has been a structural factor in Elbit's compounding scale. Alongside Shari Arison's historical position in Bank Hapoalim and the broader Israeli controlling-shareholder cohort, the Federmann family represents the institutional, principal-controlled industrial layer of the Israeli economy that complements the founder-driven technology layer.

Dan Hotels and Elbit Systems sit inside the same family holding company but operate in almost entirely unrelated sectors: tourism and hospitality on one side, defense electronics on the other. That combination makes the Federmann family one of the clearest Israeli examples of a multi-generational holding structure that has compounded across two structurally uncorrelated industries, one exposed to Israeli tourism cycles and regional stability, the other benefiting from exactly the kind of defense spending that regional instability tends to drive. The family's control of the King David Hotel, the default lodging for visiting heads of state, also gives it a unique, non-commercial form of institutional standing inside Israeli diplomatic life.

How does Dan compare to Israel's other major hotel operators? Isrotel is the domestically-focused Eilat-built giant; Fattal is the export-scale European platform; Alrov holds the top of central Jerusalem directly, with no brand contracts. Dan's distinguishing feature is the King David itself: no competitor holds a property with the same diplomatic standing.

Who Are the Other Members of the Federmann Family?

Michael Federmann's wife is Liora (also given as Leora) Federmann; the couple has three children — David, Gideon (Gidi), and Daniel — who represent the third generation in the business. Daniel Federmann is married to Sharona Pick, daughter of Israeli singer Svika Pick. Federmann's sister is Irit Federmann-Landau, and his cousin is Ami Federmann, Dan Hotels' vice chairman. Michael Federmann is Honorary Commander of the Order of the British Empire (CBE), president of the Israel-Germany Chamber of Industry and Commerce, and chairs the Board of Trustees of the Hebrew University of Jerusalem; he also sits on the board of the Weizmann Institute of Science.

Snapshot

Frequently Asked Questions

Who owns Dan Hotels?

Federmann Enterprises, the family holding company controlled by Michael Federmann, holds approximately 87% of Dan Hotels, which trades on the Tel Aviv Stock Exchange at a valuation of roughly NIS 4 billion.

When was Dan Hotels founded?

1947, when brothers Yekutiel and Shmuel Federmann purchased the Kaete Dan guesthouse on the Tel Aviv shoreline. It is Israel's oldest hospitality brand.

Is the King David Hotel part of Dan Hotels?

Yes. The King David Jerusalem, founded in 1932, is the chain's most prestigious property and the default hotel for visiting heads of state and diplomats on official Israeli government visits.

When was Michael Federmann born?

September 9, 1943, in Haifa. He is the son of Yekutiel and Bella Federmann.

Does the same family control Elbit Systems?

Yes. Michael Federmann chaired Elbit Systems, Israel's largest defense electronics company, from 2000 to 2023, alongside his chairmanship of Dan Hotels, both held through the family's Federmann Enterprises holding company.

How has the war affected Dan Hotels?

Company management has said the war that began in October 2023 materially reduced inbound tourism to Israel through 2025, with continued negative effects expected into 2026. Two properties, the Mary's Well Hotel in Nazareth and the Dan Boutique Hotel in Jerusalem, remained closed as of early 2026.

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The Olam Editorial Team | The Builders / הבונים

↗ Index: this is the Dan Hotels / Federmann profile in the Israeli Hotels cluster. Sister operator profiles: Isrotel · Fattal · Alrov · Brown · Norman.