The Waldorf Astoria Group is building a 220 room hotel called the Palace Jerusalem just one block from Jerusalem’s Old City walls. In addition to the 220 rooms, the hotel will also have 30 residences. This area of town has become a haven for the very wealthy, with the Mamilla Hotel and its apartments and the David Citadel Hotel’s apartments just across the street. The new hotels and apartments are in stark contrast to most of the news from the struggling hotel industry.
Prices for the residences at the Palace Jerusalem will be about $22,000 a square meter at the Palace Jerusalem, and about $10,000 a square meter at the Mamilla. The nearby King David Crown offers apartments at about $8000 a square meter, though there are no hotel rooms available at the King David Crown. Marketers for the projects report that most of the buyers will likely be foreigners looking for a prime location in Jerusalem.
“There’s a need for wealthy people to live with like people,” said Rina Haas, who is marketing apartments at the King David Crown. “They need the exclusivity, and this is how they’re used to living.”
The Mamilla’s 48 apartments range in size from 170 square meters to 350 square meters. Buyers can also purchase parking spots and roof space for $2000 a square meter. The roof space is important to many of the most likely buyers of the apartments, because it allows them to construct their own sukkah, the temporary dwelling used during Sukkot, an eight day fall holiday. In addition, many of the buyers of such luxury apartments favor those adjacent to hotels, because they come with plenty of amenities, and because it is easy for friends to visit and stay in the hotel.