Israel’s tourism industry is preparing for a significant leap forward, as Fattal Hotels Group, one of the country’s and Europe’s largest hospitality chains, has announced the addition of eight new properties to its domestic portfolio by 2026. This strategic development will add over 1,000 rooms to four of Israel’s most visited and economically dynamic cities: Tel Aviv, Jerusalem, Herzliya, and Ramat Gan.
The expansion not only reflects Fattal’s vision of reinforcing its footprint in Israel’s growing travel and tourism market but also showcases its confidence in the country’s post-pandemic rebound and long-term hospitality potential.
Strategic Growth in Iconic Israeli Cities
Fattal’s latest investments are spread across Israel’s most prominent urban centers, each playing a critical role in the country’s tourism map.
Tel Aviv: The Mediterranean Metropolis
Tel Aviv, known for its coastal charm, tech startups, and nightlife, will receive a series of new hotel developments. Properties like the Reception Hotel at Dizengoff Square and the Nordau Hotel promise to offer international travelers modern amenities, cultural proximity, and a distinctly Tel Avivian experience.
In addition, luxury hotels planned near the Railway Park will cater to high-end tourists looking for sophistication combined with beachside leisure.
Jerusalem: The Spiritual and Cultural Capital
Jerusalem continues to be Israel’s epicenter for religious tourism, drawing millions annually to sacred sites like the Western Wall, Church of the Holy Sepulchre, and the Dome of the Rock.
Fattal’s new Zion Square resort hotel is designed to elevate the guest experience in the city’s historic heart. With a focus on elegant design and proximity to ancient landmarks, this hotel aims to appeal to both spiritual pilgrims and high-spending tourists.
Herzliya: Coastal Sophistication Meets Business
Set to be a landmark on the coast, the Yacht Hotel Herzliya is a 327-room property beside the upscale Herzliya Marina. With a NIS 500 million investment, this seaside retreat will offer panoramic views, luxury dining, and convenient access to yachting and watersports.
The hotel is expected to appeal to both international vacationers and business travelers seeking an opulent coastal escape just outside Tel Aviv.
Ramat Gan: The Business Hub Gears Up
The Leonardo Plaza City Tower in Ramat Gan will reopen in November 2025 following an extensive renovation. As one of Israel’s most important business districts, Ramat Gan attracts a steady stream of corporate travelers, making this hotel’s reopening highly strategic. Its state-of-the-art conference facilities and luxury services will be geared toward hosting business events and international delegates.
Fattal’s Broader Investment Strategy
Beyond new construction, Fattal is actively acquiring and upgrading key assets. Notably, the group recently acquired The Jaffa Hotel, one of Tel Aviv’s most iconic luxury properties, in a NIS 450 million deal. With its historic charm and modern amenities, The Jaffa adds 120 rooms to Fattal’s high-end portfolio.
Additionally, several older properties under the Fattal umbrella are undergoing modernization to meet evolving traveler preferences such as digital check-in, co-working lounges, wellness centers, and sustainable energy solutions.
Driving Israel’s Tourism Rebound
Israel’s tourism industry is on a strong recovery trajectory. According to the Israel Ministry of Tourism, over 55,000 hotel rooms are available nationwide, with a significant increase in openings and room capacity expected in 2025 and 2026. This comes in response to surging demand among both domestic travelers and international visitors, particularly from the U.S., Europe, and Asia.
Fattal’s developments directly contribute to these efforts, adding capacity in cities where demand often outstrips supply during peak travel seasons. The chain’s diversified offerings—spanning budget, boutique, and luxury hotels—also cater to a wide range of travelers.
Challenges and Opportunities Ahead
Despite strong momentum, Israel’s hospitality sector faces headwinds such as geopolitical instability and fluctuations in inbound tourism. That said, large chains like Fattal benefit from global brand strength, cross-market resilience, and scale advantages.
Smaller independent hotels, in contrast, may find it harder to weather these challenges. Fattal’s continued growth offers a stabilizing influence in Israel’s hotel industry, ensuring reliable accommodation options and stimulating job creation.
A Vision for the Future
With its current expansion plan, Fattal Hotels is positioning itself as a cornerstone of Israel’s tourism revival. The company’s approach—rooted in strategic location, guest-centric service, and sustainable design—supports both the government’s tourism goals and the evolving expectations of modern travelers.
As tourism surges in the run-up to 2026, visitors to Israel will have more high-quality accommodation choices than ever before, whether exploring the beaches of Tel Aviv, the spiritual sites of Jerusalem, the innovation of Herzliya, or the corporate energy of Ramat Gan.
Final Thoughts
Fattal Hotels’ latest moves reflect confidence in Israel’s resilience as a world-class travel destination. With more than 1,000 rooms coming online by 2026 and strategic developments across four dynamic cities, Fattal continues to shape the future of Israeli hospitality—one luxurious stay at a time.
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