IPC Jerusalem Ltd., a joint venture Hilton Hotels Corp. and IPC US REIT (TSX:IUR), controlled by Canada's Reichman family, has signed a management agreement to manage Jerusalem's Palace Hotel under the Waldorf Astoria brand. IPC is investing $100 million in renovating the historic building, which will have 220 rooms and suites and 30 residential apartments in an adjacent building.
The Palace Hotel at the corner of King David Street and Agron Street in downtown Jerusalem, was designed by a Turkish architect and built in the 1920s. The Ministry of Industry, Trade and Labor occupied the building for decades. IPC Jerusalem bought the property from the Israel Land Administration (ILA) on the promise of preserving and renovating it. Five floors will be added to the rear side of the building.
The adjacent Customs House will be demolished and a new residential building will be built in its place.
Hilton Hotels Europe president Wolfgang Neumann said, "We decided to open a hotel in Jerusalem because there is demand in Israel for luxury hotels and apartments thanks to the improved economic climate."
Hilton Hotels has 2,645 hotels worldwide, including two in Israel. The Waldorf Astoria brand, named for the original legendary hotel in New York, is the Hilton's most prestigious brand. There are five Waldorf Astoria hotels in the world, four in the US and one in Saudi Arabia. The decision to establish the brand in Jerusalem is a vote of confidence in Jerusalem by Hilton.
The Palace Hotel is across the street from the David Citadel Hotel, formerly the Jerusalem Hilton, and just down the road from the King David Hotel.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2008
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