Opened April 2014 in the restored 1929 Palace Hotel building near Mamilla. About 227 rooms under Hilton's Waldorf Astoria flag. Restored by the Reichmann family, which sold it in 2017.
Part of: Israeli Hotels · Who Owns the Israeli Hotel Sector · Israeli Luxury 2026
Opened April 2014 in the restored 1929 Palace Hotel building near Mamilla. About 227 rooms. Hilton's Waldorf Astoria flag. Restored by the Reichmann family, which sold the hotel in 2017.
The Waldorf Astoria Jerusalem is a 227-room, Hilton-flagged luxury hotel in the restored 1929 Palace Hotel building, opened in April 2014 as the first Waldorf Astoria in Israel. The Reichmann family restored it and sold it in 2017 to French developer Michel Ohayon for about $160 million, according to the Times of Israel. The Jewish Press reported in 2023 that the York Foundation now owns it.
The original Palace Hotel was built in 1928 and 1929 by the Supreme Muslim Council. Hilton manages the hotel under the Waldorf Astoria brand, and the property anchors the internationally branded layer of Jerusalem luxury hospitality alongside the Alrov-owned Mamilla and David Citadel.
BY THE NUMBERS
Opened: April 2014
Setting: 1929 Palace Hotel building, near Mamilla and Independence Park
Keys: ~227 rooms (Globes, 2017)
Flag and operator: Hilton's Waldorf Astoria luxury brand
Restored by: the Reichmann family through IPC Jerusalem Ltd, at a reported cost of about $150 million
Ownership since: sold in 2017 to Michel Ohayon for about $160 million; reported owned by the York Foundation as of 2023
Construction scale: historic façade preserved · interior fully reconstructed
What Was the Original Palace Hotel?
The Palace Hotel was a luxury hotel built by the Supreme Muslim Council and opened in 1929 on Agron Street, across from the Mamilla Pool. Its purpose was both commercial and political, a luxury hotel in West Jerusalem under explicit Muslim institutional development.
The Palace could not compete once the King David Hotel opened in 1931, and it closed in 1935, according to Architectural Record. The building then housed government offices and a radio station, and eventually became disused. The 1929 façade survived intact.
For decades the building sat in West Jerusalem as one of the most architecturally significant unrestored sites in the city. The capital to execute on it was the constraint.
How Did the Reichmann Family Restore the Palace Hotel?
The Reichmann family, Canadian-Jewish real estate developers who built and lost Olympia & York, the Canary Wharf and World Financial Center developer, bought the Palace Hotel building in the mid-2000s for about $20 million through IPC Jerusalem Ltd, according to Globes.
The project was structurally complex. The historic façade required full preservation under Jerusalem heritage protection regulation, while the interior was completely reconstructed behind the original stonework. Globes reported the cost at about $150 million, and the hotel opened in April 2014.
Hilton manages the hotel as the first Waldorf Astoria in Israel. The Times of Israel reported in 2017 that the buyer received the right to operate it as a Waldorf Astoria for another 15 years.
Who Owns the Waldorf Astoria Jerusalem Now?
Michel Ohayon, a French-Jewish developer who also owns the Waldorf Astoria in Versailles, bought the hotel from the Reichmann family in 2017 for about $160 million, according to the Times of Israel. Globes and other outlets reported figures between $130 million and $170 million for the same sale.
The ownership later became contested. Calcalist reported that Hilton won arbitration rulings against Ohayon over unpaid license fees and a loan, and obtained a Jerusalem District Court injunction over NIS 99 million of his Jerusalem properties. The Jewish Press reported in February 2023 that the hotel is owned by the York Foundation.
What Is the Waldorf Astoria Jerusalem Property Like?
The hotel sits at the corner of Agron and King David Streets, a short walk from the Mamilla complex and the Jaffa Gate of the Old City. The location is one of the strongest in Jerusalem, within walking distance of the Old City, the Mamilla shopping district and the King David Hotel.
The rooms are spread across the original Palace structure and a new wing, and the hotel also has a residential wing with 30 luxury apartments, according to Globes. The architecture inside combines preserved 1929 stonework with contemporary Waldorf Astoria interiors designed by Feigin Architects.
The Jerusalem Rabbinate certifies the hotel as kosher, according to the Cleveland Jewish News. The dining program serves both the religious-diaspora cohort and the broader international Waldorf Astoria guest base.
Why Is the Waldorf Astoria Jerusalem Significant?
Three things made the Waldorf Astoria Jerusalem significant for the Israeli hospitality sector.
First, it was the first Waldorf Astoria in Israel, and at its 2014 opening it was described as the only internationally branded luxury hotel in Jerusalem. Before 2014, the Jerusalem top tier was Israeli-run: the King David, Mamilla and David Citadel. Hilton bringing Waldorf Astoria to Jerusalem opened the top of the city's market to a global flag, a step Six Senses Shaharut later took at the destination-luxury tier.
Second, it showed that restoring a heritage building could carry a global luxury brand in Jerusalem. The Reichmann restoration kept the 1929 façade and rebuilt everything behind it, which set a template for heritage-led hotel projects in the city.
Third, it expanded the Jerusalem trophy capacity. Before 2014, the Jerusalem top tier was effectively the King David, Mamilla and David Citadel. The Waldorf Astoria added about 227 rooms at the ultra-luxury price point, and the market absorbed them.
How Did October 7 Affect the Waldorf Astoria Jerusalem?
Like every Jerusalem trophy property, the Waldorf Astoria was hit by the post-October 7 collapse in international inbound, Christian pilgrimage and senior delegation traffic.
The recovery has been led by senior US Jewish institutional travel, religious-diaspora UHNW guests and the gradual return of American delegations. Through 2026, the property is rebuilding toward design occupancy alongside the rest of the Jerusalem luxury layer.
WHY IT MATTERS
- First Waldorf Astoria in Israel and, at its 2014 opening, the only internationally branded luxury hotel in Jerusalem
- Restored by the Reichmann family, then sold in 2017 and reported in 2023 to be owned by the York Foundation, so ownership and flag are separate questions
- Added about 227 rooms of ultra-luxury capacity to Jerusalem, and the market absorbed them
- The most architecturally significant restoration in modern Jerusalem hospitality, with the 1929 Palace Hotel façade preserved under heritage regulation
- Certified kosher by the Jerusalem Rabbinate, which matters to the religious-diaspora guest base
What's the Outlook for the Waldorf Astoria Jerusalem?
The building, the room count and the Hilton management relationship are the fixed points. The ownership structure is the variable, and it has changed since the Reichmann family sold in 2017.
The longer-term question is whether Hilton, or any of the global luxury houses, adds further Israeli capacity. A Tel Aviv urban-luxury Hilton flag would be the obvious next move, and the timing depends on the recovery cycle and on Hilton's broader Middle East and Mediterranean strategy.
Waldorf Astoria Jerusalem: FAQ
When did the Waldorf Astoria Jerusalem open?
The Waldorf Astoria Jerusalem opened in April 2014, in the restored shell of the 1929 Palace Hotel building. It was the first Waldorf Astoria in Israel.
Who owns the Waldorf Astoria Jerusalem?
The Reichmann family restored the hotel and sold it in 2017 to Michel Ohayon for about $160 million, according to the Times of Israel. The Jewish Press reported in February 2023 that the York Foundation owns it, and Hilton operates it under the Waldorf Astoria brand.
What was the original Palace Hotel?
The Palace Hotel was built by the Supreme Muslim Council and opened in 1929. It closed in 1935 after it could not compete with the King David Hotel, and the building then passed through government and administrative uses before standing disused for decades. The 1929 façade survived intact.
How many rooms does the Waldorf Astoria Jerusalem have?
About 227 rooms, according to Globes, spread across the original 1929 Palace structure and a new wing. Other sources cite 226.
Where is the Waldorf Astoria Jerusalem located?
The hotel sits at the corner of Agron and King David Streets in West Jerusalem, a short walk from the Mamilla complex and the Jaffa Gate of the Old City.
What was the Reichmann family's role in the restoration?
The Reichmann family, Canadian-Jewish real estate developers behind the original Olympia & York, bought the Palace Hotel building in the mid-2000s and restored it at a reported cost of about $150 million. The historic façade was preserved under Jerusalem heritage protection regulation and the interior was completely reconstructed.
Is the Waldorf Astoria Jerusalem kosher?
Yes. The Jerusalem Rabbinate certifies the hotel as kosher, according to the Cleveland Jewish News. The dining program serves both the religious-diaspora cohort and the broader international Waldorf Astoria guest base.
How does the Waldorf Astoria Jerusalem compare to the King David and the Mamilla?
The King David is Israel's diplomatic anchor, operating continuously since 1931. The Mamilla, owned by Alrov, anchors the Mamilla complex. The Waldorf Astoria Jerusalem is Hilton's ultra-luxury flag in Israel, in the restored 1929 Palace Hotel. The three are not interchangeable; they sit alongside each other as the top tier of the Jerusalem market.
How has the Waldorf Astoria Jerusalem performed since October 7?
Like every Jerusalem trophy property, the Waldorf Astoria was hit by the post-October 7 collapse in international inbound, Christian pilgrimage and senior delegation traffic. The recovery has been led by senior US Jewish institutional travel, religious-diaspora UHNW guests and the gradual return of American delegations.
↗ Index: this is the Waldorf Astoria Jerusalem profile in the Israeli Hotels cluster, the Olam guide to the Israeli hotel sector. Companion properties: King David Hotel · Mamilla and David Citadel (Alrov) · Six Senses Shaharut · Pereh Mountain Resort. Capstone: Who Owns the Israeli Hotel Sector. Sector guide: Israeli Luxury 2026. Global brand profile: Everything-PR's Hilton Worldwide.
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
