Israel-based developer Nitsba Holdings has requested permission from the Modi'in Local Planning and Building Commission to develop a hotel at the entrance to the company's Airport City business complex between Jerusalem and Tel Aviv.
Nitsba will invest more than NIS200 million in the hotel's construction at NIS850,000 per room. The developer will receive a grant from the government to fund the hotel’s construction. The seven-floor property will have 250 guestrooms once construction is complete. Nitsba is in talks with several Israeli and international hotel management companies, including Fattal Hotel Management, to choose an operator for the property.
The upcoming hotel is set to be the first built near Ben Gurion Airport. Nitsba originally planned to develop the hotel 15 years ago as part of Airport City's original plans. However, Nitsba decided to shelve its development until recently. Priel Attias, CEO of Nitsba Holdgings, told Globes, "First of all, the Ministry of Tourism made the important decision to extend its grants to everywhere in Israel other than in Tel Aviv and Herzliya--an incentive that did not previously exist--so that we can receive 20 percent back on the investment in the hotel's construction. The second reason is the increase in tourism, which resulted in the expansion of Ben Gurion Airport and the terminal, thereby generating enormous demand for hotel rooms for the air crews and passengers."
Another hotel will be developed near Ben Gurion Airport and Nitsba's hotel. The Ministry of Finance set plans in October 2016 to build the hotel as part of a priority area designated by the Law for the Encouragement of Capital Investments. The Israel Airports Authority has requested several times for the hotel to be constructed west of Terminal 3. However, construction on this project continues to be delayed.
Nitsba currently owns the Eilat Princess Hotel after purchasing the property for more than NIS250 million. The hotel is slated to open in third quarter of 2017 once renovations are complete. The group also has a pipeline of 2,000 hotel guestrooms under construction in Israel.