Israel invests heavily in hotels amid conflict
Despite ongoing regional tensions, Israel is pressing ahead with a substantial expansion of its tourism infrastructure.
The country has opened 13 new hotels in 2024 alone, most of them in Tel Aviv, as part of a broader strategy to boost its hospitality sector and support business, religious, and leisure travel.
This expansion, led by Israel's Ministry of Tourism, includes both government-backed and private-sector hotel investments. A total of 27 additional projects are currently supported by a $113 million funding package, $22 million of which comes from direct government grants.
Tel Aviv, Israel's commercial and cultural hub, has seen the lion's share of recent hotel openings.
New properties include The George, a 130-room hotel designed by Spanish architect Lázaro Rosa-Violán; Albi Florentin, a boutique hotel with digital check-in; and the Mulan Hotel, located near Meir Park and Dizengoff Center.
The Gimnasia Hotel, opened in March 2025, features 145 rooms and a rooftop infinity pool, adding to the city's appeal for upscale travellers and event organisers.
Other openings include Allenbeach TLV Aparthotel, aimed at adult visitors near Jerusalem Beach, and THE GUTMAN TLV, a boutique hotel located in the historic Neve Tzedek district.
These developments reflect rising demand for varied accommodation options in Tel Aviv, where international events, tech conferences, and business travel continue despite regional instability.
Beyond Tel Aviv, Israel is expanding hospitality capacity in key destinations across the country. The Almond Hotel in Neve Ilan, just outside Jerusalem, opened in early 2024 as a luxury adults-only spa retreat.
Jerusalem also welcomed the launch of the Infinity Museum, an immersive cultural experience funded by the city and local stakeholders.
Future hotel developments are set to add approximately 2,700 new rooms nationwide. These include a 260-room resort in Mitzpe Ramon, three hotels with nearly 950 rooms near the Dead Sea, and two new properties near Eilat on the site of the former Ovdat Airport.
Major hotel groups are playing a leading role in this growth.
Isrotel has announced 10 new properties for 2025, five of which will be in Tel Aviv. The Fattal Group plans to open six hotels in Jerusalem, while Brown Hotels is expanding with two new properties in the Tel Aviv area.
Alongside its hospitality efforts, Israel is investing in wider tourism infrastructure. The Ministry of Tourism is supporting 55 projects valued at $65 million.
Initiatives include laser light shows at the Eilat Marina, enhanced visitor experiences at religious and archaeological sites, and new riverside attractions in Ginosar.
In Beer Sheva, the Nahal River Park is undergoing transformation into an eco-tourism site, with features such as a birdwatching complex aimed at attracting both domestic tourists and international incentive groups.
Despite ongoing geopolitical challenges, these investments indicate confidence in the long-term viability of Israel's tourism sector.
The strategy reflects a shift towards positioning the country not just as a religious or cultural destination, but also as a competitive player in international business tourism and events.
"Israel invests heavily in hotels amid conflict" was originally created and published by Hotel Management Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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