Despite the conflict, Israel is investing heavily in its hotel industry

Hotels are booming across Israel. Despite ongoing regional tensions, the country opened 13 new hotels in 2024 alone, with 27 more projects backed by $113m in investment. Major developments include luxury resorts and boutique properties in Tel Aviv, Jerusalem, and the Dead Sea. This ambitious expansion signals confidence in the future of Israeli tourism and business travel.

Middle East | Guest Author
29 May 2025, 12:51pm 

Despite the ever-present regional conflict, Israel’s tourism and events industry is far from dying. It may come as a shock to a Western reader that Israel is investing heavily in its tourism industry.

The country has recently launched a wave of hotel and infrastructure investments, opening 13 hotels in 2024 alone. That is a considerable number for a country that’s about the same size as Wales.

These include eight in Tel Aviv, the country’s commercial and event hub, and more in Jerusalem, Haifa, Neve Ilan and Bat Yam. The country’s Ministry of Tourism is backing an additional 27 hotel projects through a $113m investment package – $22m of which comes directly from government grants.

Dan Tel Aviv hotel, one of the city’s most iconic hotels

Recently opened hotels in Israel

Here are some of the most recent hotel openings in Israel (mainly in 2024 in Tel Aviv):

The George, Tel Aviv

Opened in February 2024, The George is a contemporary hotel with 130 rooms and 40 suites. It was designed by Spanish architect Lázaro Rosa-Violán and offers amenities such as a wellness floor, rooftop pool and jazz lounge.

The Almond Hotel, Neve Ilan

The Almond Hotel is a boutique spa and luxury property that opened in February 2024 in Neve Ilan, just outside Jerusalem. Designed for adults only, it offers wellness-focused amenities including a spa, infinity pool, and panoramic views of the Judean Hills.

Albi Florentin, Tel Aviv

Launched in March 2024, this is a boutique hotel situated in the Florentin neighbourhood. It offers digital check-in and a rooftop Jacuzzi.

Mulan Hotel, Tel Aviv

Opened in April 2024, the Mulan Hotel is located near Meir Park and Dizengoff Center. It offers rooms with city views and amenities such as a hot tub.

Allenbeach TLV Aparthotel, Tel Aviv

Launched in March 2024, Allenbeach TLV is an adults-only aparthotel situated 300 meters from Jerusalem Beach.

1 Hotel Bazaar – Fattal Colors, Tel Aviv

Opened in 2024, this hotel is part of the Fattal Colors brand and offers a unique design and experience in Tel Aviv.

THE GUTMAN TLV, Tel Aviv

This boutique hotel, opened in 2024, is located in the Neve Tzedek neighbourhood.

Gimnasia Hotel – Isrotel, Tel Aviv

Opened in March 2025, the Gimnasia Hotel is a luxury urban property located on Montefiore Street. It has 145 rooms, a rooftop infinity pool and the relocated Shila restaurant by Chef Sharon Cohen.

Tel Aviv aerial view

The confirmed developments will add around 2,700 new hotel rooms nationwide in the coming years. Flagship projects include a 260-room resort in Mitzpe Ramon, three new Dead Sea hotels with nearly 950 rooms, and two hotels near Eilat on the site of the former Ovdat Airport.

Major local groups are also investing heavily. Isrotel plans 10 openings in 2025, including five in Tel Aviv and one at the Dead Sea, while the Fattal Group will open six new hotels in Jerusalem. Boutique operator Brown Hotels is adding two more properties in Tel Aviv.

New cultural offerings

Jerusalem, one of the country’s key destinations for government and religious events, also saw the launch of the Infinity Museum – a multi-sensory, 1,800sqm immersive experience venue backed by the municipality and Ariel Municipal Society.

Beyond hospitality, Israel is investing in broader cultural infrastructure. The Ministry of Tourism is backing 55 tourism projects worth $65m, including laser shows at the Eilat Marina (a riverside promenade in Ginosar) and new visitor experiences at religious and archaeological sites.

In Beer Sheva, Nahal River Park is being transformed into a new public and eco-tourism zone. The updated site will include a birdwatching complex that could support leisure and incentive itineraries for visiting delegations.

A long-term bet

While Israel continues to face massive regional instability, these developments reflect a long-term bet on the growth of business travel, religious tourism and the international events industry. Clearly, Israel’s Ministry of Tourism sees a profitable future ahead.

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