Founder of Rafael Family's Airbnb Empire Seeks Debt Arrangement After Business Collapse
Yuval Rafael, founder of the Rafael family's Airbnb empire that once managed around 200 rental apartments, has filed for a debt arrangement following a severe financial collapse. At 42 years old, Rafael submitted the request on Sunday to the Magistrate's Court in Rishon Lezion, seeking a stay of proceedings to negotiate debt restructuring. His personal guarantees amount to approximately 49 million shekels, covering ongoing business debts, loans for property acquisitions, and personal guarantees for group companies' operations.
This filing follows a recent district court order in Beersheba to liquidate two of Rafael's companies, Yuval Rafael Holdings and Rafael Real Estate Consulting and Investments, with trustees appointed. Additionally, Mizrahi Tefahot Bank requested the appointment of a receiver over assets due to an alleged debt of 5 million shekels. Rafael's lawyers, Shelly Nahum and Itamar Cohen, submitted an affidavit detailing that Rafael is married with three children and operated a tourism business specializing in short-term rentals through three companies.
Rafael attributes his financial downfall primarily to external economic conditions affecting Israel, stating, "My collapse was mainly due to external circumstances that the Israeli economy faced, which prevent me from paying my debts on time, and my businesses collapsed." He also highlighted his patriotic service as a combat soldier in an elite unit and his volunteer work with the Beit HaGalgalim association.
Significantly, Rafael revealed that at the outbreak of the October 8, 2023 war, he immediately offered all approximately 200 properties under his group's control free accommodation to about 1,000 Israelis evacuated from the Gaza envelope and northern communities. He bore substantial operational and rental costs without compensation, which depleted the company's previously solid financial base.
The affidavit further explains that although Rafael's businesses recovered after the COVID-19 pandemic, the "Iron Swords" war triggered the most severe crisis in Israel's tourism sector since the state's founding. International travel warnings and flight cancellations to Israel eliminated the core tourist clientele for short-term rentals, and domestic tourism also declined. A dispute with the Ministry of Tourism over the classification of apartments for evacuee accommodation led to significantly lower payments than expected.
Seven real estate properties registered under Romi Rafael Real Estate and one under Rafael Real Estate will be sold during company liquidation to repay secured creditors. Rafael's attorney emphasized the tragic nature of the situation, describing it as a successful business abruptly ended by unforeseen war impacts, dragging Rafael and his family into financial ruin.
A beneficiary of Rafael's generosity, Lavanet Hadad Ohayon, who was evacuated from the Gaza envelope on October 7, praised Rafael for hosting her extended family free of charge in a villa in Eilat during the crisis, calling him "a wonderful person" who refused any payment or thanks.
It is clarified that Rafael's companies are unrelated to the "Rafael Real Estate Group" owned by David Rafael in Ramat Gan.
