Eilat's Iconic Princess Hotel Reopens After a Decade Under New Luxury Hotel Management Network

The Princess Hotel in Eilat, a once-iconic luxury hotel closed for about ten years, is set to reopen under a new hotel management network established by real estate group Airport City. The group announced on Tuesday its entry into hotel management, partnering with Avia Magen, former CEO of Fattal Israel, to operate the Princess Hotel along with other properties. The new network will initially manage around 1,100 rooms and suites, aiming to expand further by adding more hotels.

The Princess Hotel originally opened in 1992 near the Taba border crossing, featuring 419 rooms, suites, a large pool, and a private beach. It was a symbol of luxury in Eilat until its closure in 2015 due to financial difficulties, heavy debts, decreased tourism during the Second Intifada, and competition from newer hotels. The hotel was sold to the company Natzba and closed for extensive renovations. A fire in 2019 during renovation work further delayed reopening, leaving the building abandoned for years.

Alongside the Princess Hotel, the new management network will operate the German Colony Hotel in Haifa, the Leumi Hotel in Jerusalem, and the Sha'ar HaYam Hotel in Netanya, all owned by Airport City. These hotels will be operated as five-star luxury properties. Airport City is also developing a new hotel in Sarona, Tel Aviv, with about 800 unique concept rooms and a high-tech conference center, as well as a luxury hotel in Eilat featuring 90 suites with private pools.

The consolidation of hotel operations under one management company will centralize functions such as marketing, procurement, HR, technology, finance, and reservations, aiming for efficient and professional management. Airport City executives Kobi Maimon and Haim Zuf emphasized the strategic importance of entering hotel management and expressed confidence in Avia Magen’s leadership. Magen highlighted the opportunity to build a new organizational culture and hospitality standards tailored to future hotel industry demands, starting with the Princess Hotel’s reopening next season.