Iconic Princess Hotel in Eilat Set for Revival Under New Luxury Hotel Chain

After being closed for about a decade, the legendary Princess Hotel in Eilat is preparing to reopen. The hotel, featuring 420 rooms and suites, will be part of a new luxury hotel chain established by real estate group Airport City and Avia Magen, former CEO of Fattal Israel. Initially, the chain will operate approximately 1,100 rooms across four upscale hotels nationwide, with plans for further expansion.

Airport City announced its entry into hotel management and operation, partnering equally with Avia Magen to form the new management company, which she will lead. The chain is currently finalizing branding and operational preparations and will manage the hotels after completing renovations to meet international standards, aligning with the expected return of inbound tourism to Israel.

Besides the Princess Hotel in Eilat, the chain will manage the German Colony Hotel in Haifa, the Leumi Hotel in Jerusalem, and the Shaar Hayam Hotel in Netanya, all owned by Airport City. All properties will operate as five-star luxury hotels. Additionally, Airport City is developing a new hotel in Tel Aviv's Sarona area with about 800 concept rooms and a high-tech conference center, and another luxury hotel in Eilat featuring 90 suites with private pools.

The company stated this move complements Airport City's core real estate activities by centralizing hotel management functions such as marketing, procurement, HR, technology, finance, and reservations under one management company. This unified model is expected to enable efficient, professional management and create value for the group and property owners.

Airport City executives Kobi Maimon and Haim Tzuf emphasized the strategic importance of entering hotel management and praised Avia Magen's expertise and long-term vision. Magen expressed pride in launching the new venture, highlighting the opportunity to build a corporate culture and hospitality standards suited to the future of the hotel industry, with the Princess Hotel as a flagship property.