Designed for businesspeople, the Link & Hub is Dan's third Tel Aviv hotel and 13th in Israel.
Flights between Eilat and Frankfurt and Munich will have two weekly flights each starting in October.
El Al's flight from Tel Aviv to Mumbai today was cancelled because a pilot could not be found.
The airport, which can serve 2 million passengers annually, will be opened for full operations in April 2019.
In 2017, Turkish Airlines carried more than a million passengers from Tel Aviv's Ben Gurion Airport.
The new route will operate twice weekly, in addition to Wizz Air's flights between Eilat and London, Bucharest, Riga, and Warsaw.
El Al says it wants to reach agreement with its workers on streamlining measures.
El Al flights were late 38% of the time last month, according to Flightstats.
Flight delays and cancellations are destroying El Al's reputation while stewards continue to ask women to move to accommodate ultra-Orthodox-men who won't sit next to them.