IsraelâŻââŻIn a bold move to bolster Israelâs tourism infrastructure, Fattal Hotels, one of Israel and Europeâs leading hospitality groups, has announced plans to launch eight new hotel properties across Tel Aviv, Jerusalem, Herzliya, and Ramat Gan by the end of 2026. This expansion will add over 1,000 new rooms, spanning luxury resorts, business hotels, and boutique residences to meet anticipated demand from both domestic and international visitors.
Key Markets: Jerusalem, Tel Aviv, Herzliya & Ramat Gan
Jerusalem
The company is developing a luxury resort in Zion Square, mere steps from the cityâs iconic religious and historical landmarksâsuch as the Western Wall, Church of the Holy Sepulchre, and the Old City. The new development aims to attract leisure and upscale religious tourism visitors seeking comfort, serenity, and high-end amenities within walking distance of sacred sites.
Tel Aviv
Known for its dynamic urban culture, beaches, and nightlife, Tel Aviv is central to Israelâs leisure and business travel. Fattalâs pipeline includes the Reception Hotel at Dizengoff Square and a new upscale location near the popular Railway Park and beachfront districts. Among its acquisitions in the city is the historic Jaffa Hotel, now Fattalâs upscale flagship property with 120 rooms and Mediterranean designs.
Herzliya
The planned Yacht Hotel on Herzliya Marina will deliver 327 waterfront rooms and upscale amenities overlooking Israelâs Mediterranean shoreline. With an NISâŻ500 million construction investment, the resort targets both domestic and international leisure markets.
Ramat Gan
In the city centre, Fattal will reopen the Leonardo Plaza City Tower in late 2025 following substantial renovations, providing a boutique business-class offering ideal for visitors attending conferences or trade events in nearby Tel Aviv and Ramat Gan.
Why This Expansion Matters
Despite regional security concerns, Israelâs tourism sector continues to show growth. The Israel Hotels Association reports over 55,000 hotel rooms nationwide, with 700 new rooms already introduced in 2025. Fattalâs strategic expansion not only meets growing demand but reflects investor confidence in Israelâs long-term tourism outlook.
Fattalâs expansion will:
- Diversify hotel choices across four major tourism hubs
- Strengthen competition in luxury and business hospitality segments
- Generate hundreds of jobs in construction, hotel operations, and service industries
- Elevate Israelâs global hospitality profile with modern amenities and design
Strategic Acquisitions and Renovations
Fattalâs expansion includes revitalizing existing assets. The takeover of The Jaffa Hotel, a landmark property with historic significance, underscores their commitment to blending heritage charm with modern luxury. The full-scale upgrade of the Leonardo Plaza City Tower also highlights their asset improvement strategy, ensuring legacy hotels remain competitive.
Linked with Broader Tourism Momentum
Israel welcomed millions of international travelers in 2024 and continues to attract growth across cultural, religious, and medical tourism. Cities like Tel Aviv and Jerusalem are globally recognized travel destinations. Fattalâs expansion aligns perfectly with Tourism Ministry initiatives to support sustainable tourism and diversify tourism sources beyond traditional markets.
Local governments in Tel Aviv, Jerusalem, and Herzliya have all expressed support for Fattalâs developments, which are aligned with urban regeneration and visitor infrastructure plans in each city.
Calling Attention to Challenges & Confidence
While the broader tourism market faces geopolitical uncertainties, Fattal continues investing in long-term infrastructure projects. Their diversified brand portfolio includes budget (Leonardo), midâmarket (Prima), and luxury (Jaffa, Yacht resort) tiers, providing resilience across economic cycles.
By committing to expansions across multiple cities, Fattal demonstrates confidence in Israelâs recovery from the pandemic and political challenges, positioning the nation as a resilient destination for travelers worldwide.
What Travelers Can Expect
When completed, these properties will offer:
- Over 1,000 additional hotel rooms in prime city locations
- A mix of coastal resorts, city-centre luxury, and business-class meeting facilities
- New guest experiences blending modern design, wellness amenities, and local cultural touches
- Sustainable tourism features such as energy-efficient operations and local sourcing
Tourists can expect a broader selectionâfrom upscale marinas and seaside retreats to refined boutique stays in Jerusalemâs historic quarters.
Final Thoughts: The Future of Israeli Hospitality
Fattal Hotelsâ ambitious expansion underscores Israelâs evolving tourism landscape. With new builds and renovated flagships across Tel Aviv, Jerusalem, Herzliya, and Ramat Gan, the company is positioning itself at the heart of the countryâs recovery and future growth.
By offering diverse, high-quality accommodation options, Fattal is helping ensure Israel remains a competitive, welcoming, and memorable destination for travelers in 2025 and beyond.
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