The Tel Aviv Municipality is encouraging such conversions from offices to hotels due to the shortage of hotel rooms in the city.
“Beit Gaon, an office tower on the Tel Aviv seafront near Neve Tzedek, is set to become a hotel. Netanel Group and Maor hotels bought 10 of Beit Gaon’s 17 floors in 2017. The 10 floors encompassing 6,000 square meters will be converted into a hotel with 173 rooms and a gourmet restaurant. Netanel Group Ltd. has signed an agreement to lease ten floors of Beit Gaon on Kaufmann Street to Brown Hotels. The lease is for 10 years with three options to extend for five years each. Under the terms of the agreement, Netanel Group and Maor Hotels, which each own 50% of the building, will bear the estimated NIS 50 million cost of converting the office building into a hotel.”