Mixed use projects

1. FOR HOTEL
INDUSTRY
MIXED-USE PROJECTS

2. TABLE OF CONTENTS
▸Business Model
▸Construction regulations
▸Hotels & Dwellings (Vacation & Residential)
▸Office Tower & Hotel

3. A HOTEL REQUIRES HEAVY INVESTMENT DURING
CONSTRUCTION, WHICH TAKES YEARS TO
RECOUP, WHILE HOMES, IN CONTRAST, ARE SOLD
DURING THE CONSTRUCTION PHASE – SOMETIMES
EVEN EARLIER – AND GENERATE INCOME THAT
CAN HELP OFFSET THE LARGE INVESTMENT
NEEDED FOR THE HOTEL. THE HOME SALES
FINANCE CONSTRUCTION OF THE HOTEL, AND
ONCE FINISHED, THE INCOME FROM THE HOTEL
FINANCES THE PROJECT’S UPKEEP.

4. REGARDING CONSTRUCTION REGULATIONS, IN
2004, THE PROTECTION OF THE COASTAL
ENVIRONMENT LAW WAS PASSED. THE LAW
FORBIDS CONSTRUCTION WITHIN 100 METERS
OF THE COASTLINE AND PERMITS ONLY HOTELS
WITHIN 300 METERS OF THE SHORE. IN 2006,
THE HIGH COURT OF JUSTICE RULED THAT THE
OWNERS OF VACATION APARTMENTS IN THE
ADJACENT MARINA PROJECT WERE TO BE
FORBIDDEN FROM LIVING THERE ALL-YEAR
ROUND AND WOULD NEED TO RENT THEM OUT
AS HOTEL UNITS FOR AT LEAST THREE MONTHS
OF THE YEAR.
The law impact on the project

5. THAT IS STILL RELEVANT FOR CITIES LIKE
HERZLIYA OR NETANYA.
THE COASTLINE OF TEL AVIV- YAFO IS NOT
RESTRICTED TO JUST VACATION UNITS, SINCE IT
FALL UNDER MUNICIPAL ZONING LAWS THAT
PREDATE THE PROTECTION OF THE COASTAL
ENVIRONMENT LAW.
The law impact on the project

6. SUM UP OF THE MIXED-USE PROJECT HOTEL & DWELLINGS
HOTELS & DWELLINGS
▸Projects in TLV, Herzlyia & Netanya

7. RITZ CARLTON HERZLIYA PITUACH
The developers behind the Ritz-Carlton project – Tidhar Group and Adi’s Investments – originally bought the land with the
Building a hotel wasn’t the original plan, but after giving it some thought, they understood the need to hook up with one of

8. ROYAL BEACH TLV
The Royal Beach TLV, offer a mixed-use of 230-hotel room & suites and
60 regular apartments distributed on 16 floors. Residents also own a parking slot.
They do have an independent entrance to the building but have an access to all
the facilities with preferential rates.

9. W HOTEL IN YAFFO
The W Tel Aviv-Jaffa project contains 125 hotel rooms and 38 apartments. It is a residential project
within the same building as the hotel, rather than separate.
These are regular residential apartments, not vacation apartments like those at the Ritz-Carlton.
Most of the apartments already sold in the W project have been bought by foreign residents – Israelis
living abroad, or foreign Jews.
Prices range from 70,000 shekels (about $20,000) to 80,000 shekels per square meter.

10. HOTEL ROTHSCHILD 22
OFFICES & HOTEL
▸Hotel Rothschild 22

11. CONCLUSION
▸Profitable Business Model
▸Based on the construction regulations
▸Operating by International Chains
▸Worldwide Trend (US Concept)
▸=> More & more developed in Israel