Jerusalem Hotel Investments

Jerusalem Hotel Investments

Jerusalem Hotel Investments

Jerusalem – Hotel Equity Fund in Israel – Hotel Investments in Jerusalem

Jerusalem Israel – Hotel Market Report 2020

 Israel is experiencing a tourist boom; therefore, the country welcomes hotel investment in the midst of this tremendous growth. With its cool vibe and creative atmosphere, Jerusalem is a favorite of the American traveler, but the city is also popular with European visitors. It has a robust economy, and the present geopolitical landscape is drawing tourists.

During 2017, Jerusalem saw a rise of over 30 percent in hotel rooms for international visitors. 2018 was a record year (one of a string of high-performing years) for Israel hotels.

RevPAR (revenue per available room) rose by at least 6% during that year in all major locations in Israel driven mostly by a healthy increase in average rates.

Indeed, Jerusalem reported a 10% increase in demand – fueled especially by the international market representing 80% of the city’s total hotel stays.

In January 2019, Israel opened a new international airport in Eilat with connections to several European carriers. Israel sees considerable potential for a rise in Chinese and Russian guests in the near future. It is possible to find low-cost travel to Israel.

As of August 2019, Jerusalem’s hotel pipeline accounted for 16% of its present room supply. The pipeline across Israel has never before displayed such strength.

Jerusalem is a historic city – one of the oldest cities in the world; a day trip from Galilee to Jerusalem to the Dead Sea is a preferred choice among visitors.

Yet Jerusalem also has a contemporary side that captures the interest of today’s travelers. It is an enigmatic city, and that modern edge is an exciting surprise for visitors.

With its historical past, almost more museums and cultural festivals per capita than any other city around the globe, and a thriving design industry, as well as its first-class dining scene, Jerusalem has universal appeal for all kinds of travelers – religious groups, art and design lovers, culinary enthusiasts, etc.

During 2020, the opening of the high-speed light rail between Tel Aviv and Jerusalem creates easy access between Israel’s two largest cities. This train will bring a huge wave of tourism to both centers; it will lead to great returns for investors in these hotel sectors. Local travelers can choose a train ride on the new fast link, or they can take the more scenic route.

According to HVS, the hotel consulting firm, there will be significant hotel development in Israel during the next ten years. At least 13 new properties have opened recently, and another 50 hotels (10,000 rooms) are expected to show up throughout the country.

Some developments were luxury accommodations. There were also restoration and renovation of existing hotels with aging or outdated infrastructure.

Projections show even more projects in Jerusalem, as well as Tel Aviv, and the Dead Sea. Local and international hoteliers want to expand their presence in these dynamic locations. There is a growing demand for new hotels in Jerusalem.

The launch of government initiatives in 2016 aimed to spark hotel investment in Israel and make it a more affordable destination for travelers. The government measures included recognizing hotels as part of the infrastructure, grants for developers, a centralized application process for permits, and allowing district committees to grant extra residential rights to developers.

The purpose was to improve the attractiveness of hotel investment in Israel. Based on the current prosperous hotel market in the country – the plan must have been a success. Investors are showing more interest and greater confidence in the potential and strength of the Israeli hotel industry.

If you want to invest in the Mediterranean; consider Israel; this country’s thriving tourism market welcomed 4 million visitors in 2018.

Of course, Israel has always been a preferred destination for travelers through the years. By the end of 2019, foreign investors were rushing to enter the “hot” hotel market in Jerusalem.

There is tremendous opportunity in this area, and hotel operators and foreign investors are taking note of the ever-increasing tourist numbers.

Various major brands are set to open hotels in this outstanding city over the next few years. New properties are coming to the city in 2020. For example, two urban boutique hotels are planned for spring – one located close to the Old City walls in the center of Jerusalem, and the other with an amazing view of the Yehuda Mountains.

International hotel groups and brands are enthusiastic about Jerusalem. Sometimes foreign investors and experienced locals become investment partners.

Jerusalem is a key city in Israel, and hotel developers realize its significance and popularity with tourists. This marketplace will continue to make gains into the foreseeable future. The Jerusalem hotel sector can compete with any European market as a dream destination with high occupancy rates.