Airport City Group to Reopen Iconic Princess Hotel in Eilat After Years of Closure

After nearly a decade of remaining closed, the iconic Princess Hotel in Eilat is set to reopen soon as part of a new luxury hotel management network launched by the Airport City real estate group. The hotel will feature 420 rooms and suites and is among several properties included in the new chain, which will initially manage approximately 1,100 rooms across Israel.

The new hotel management network is being established in partnership with Avia Magen, former CEO of the hotel chain Fattal, who will lead the operational arm of Airport City’s hospitality ventures. The group is currently finalizing branding and operational preparations for the network, which aims to expand by adding more hotels in the future.

Alongside the Princess Hotel in Eilat, the network will operate luxury five-star hotels owned by Airport City in Jerusalem, Haifa, and Netanya, including the German Colony Hotel in Haifa, the National Hotel in Jerusalem, and the Sea Gate Hotel in Netanya. Airport City is also developing a new hotel in Tel Aviv’s Sarona district with 800 unique concept rooms and a state-of-the-art technology conference center.

In Eilat, the group is advancing a luxury hotel project featuring 90 suites with private pools. Airport City executives Kobi Maimon and Haim Tzuf emphasized the strategic importance of entering hotel management and expressed confidence in Avia Magen’s leadership and experience. Magen highlighted the opportunity to build a new organizational culture and hospitality standards tailored to the evolving hotel industry, with the Princess Hotel as the flagship property.

The reopening of the Princess Hotel marks a significant revival for Eilat’s hospitality sector and reflects Airport City’s broader ambitions to grow its luxury hotel portfolio nationwide.