Real estate firm Airport City has entered Israel's hospitality management field by creating a dedicated hotel company in partnership with Avia Magen, previously the top executive at Fattal Hotels. The new operator will be held equally by Magen and Airport City via a limited partnership structure.

Magen left her position at Fattal after reaching the top of her role there without gaining ownership equity, as owner David Fattal instead placed his children in prominent posts.

Magen persuaded Airport City's leadership that conditions favor a fresh hotel brand in Israel, especially once international visitors return in force.

The project carries an estimated minimum investment of NIS 1 billion and will encompass 1,100 rooms in five luxury properties: the Sarona Tel Aviv Hotel with 800 tech-oriented rooms, the Hamoshava Hotel in Haifa, the Haleom Hotel in Jerusalem, Sha'ar Hayam in Netanya, and a 90-suite luxury property in Eilat.

The Eilat site will stand next to the Princess Hotel, now under major renovation. The property was acquired ten years ago by Airport City owners Kobi Maimon and Haim Tsuff from Germany's Tessler family.

An earlier sale to Isrotel was blocked by competition regulators over market concentration issues. After renovation the Princess will feature 420 rooms and suites, with Magen heading the new management company that will function as Airport City's hospitality arm.

In an exchange filing the company noted that the move fits its real estate focus and lets it centralize marketing, purchasing, staffing, technology, finance, and booking functions for its hotels under one operator.

Kobi Maimon and Haim Tsuff stated that entering hospitality represents a key strategic move and that partnering with an experienced leader like Magen brings the needed expertise and vision for long-term growth.

Magen remarked that the new company offers a chance to shape culture, standards, and a forward-looking hospitality model from the start, beginning with a strong lineup of upscale hotels highlighted by the Princess in Eilat.