Tenders awarded for 2 Jerusalem hotels

Jerusalem
Jerusalem

Two hotels with 580 rooms will be built near the Armon Hanatziv ridge overlooking the Old City.

The tenders committee of the Israel Land Administration (ILA) has awarded two tenders for hotels in Jerusalem to the Hasid Bros. Contractors and Construction Ltd. and Klir Chemicals & Marketing Ltd. The companies can lease the land near the Armon Hanatziv promenade overlooking the Old City and the area known as the Holy Basin, because it is sacred to the monotheistic religions.

Both bid winners had "recommended" status from the Ministry of Tourism. Klir's bid won a 7,700-sq.m. lot for NIS 11.7 million, on which the company will build an 8-floor 400-room hotel. Hasid Bros. won a smaller lot for NIS 5.8 million, on which the company will build a 180-room, 7-floor hotel.

The ILA said that the two tenders are the first stage in a plan called the "hotel ridge compound" to build 1,330 hotels rooms on land covering 129,000-sq.m. Some of the land will also be used for commercial space and car parks.

The development work will be carried out by the Ministry of Tourism through the Government Tourism Company and the plan is being jointly promoted by the ILA and Ministry of Tourism.

Ministry of Tourism director general Amir Halevy said, "Jerusalem is receiving a major addition of rooms boosting it towards 15,000 rooms in the coming years. Jerusalem has huge tourism potential and consequently the Ministry has invested hundreds of millions of shekels in recent years in grants to developers."

As part of the Israeli government approved Merom plan in 2011, the Ministry of Tourism is committed to allocating up to NIS 75 million to encourage hotel construction in Jerusalem, making the city an attraction for millions of tourists annually. The Jerusalem Development Authority estimates that by 2019, the city will have 13,000 hotel rooms.

Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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