Nature of the Current Business:
The Tel Aviv Hotel is located in the heart of the historic Old City of Tsfat, making it a prime tourist location. The structure, layout and location of the hotel is exclusive and unique to the city. It currently operates solely as a hotel, renting rooms primarily on Shabbat, and is generally closed the remainder of the week during off-season. It caters to individuals and groups of all backgrounds visiting Tsfat, from both within Israel and outside the country. The hotel operates with the barest minimum of staff, services and quality. The customer service and aesthetic level is far below the normative standard for foreign visitors, which is perhaps the single largest barrier to attracting more customers to the hotel. It is, however, set amidst a number of other smaller hotels / hostels with even lower standards of operation. According to the owners, current gross annual income is 2 million NIS ($500,000 USD), which includes "off the books" income. Room prices (double occupancy) are negotiable and range between 220-600 NIS ($55-$150 USD) depending upon season and inclusion of meals.
Current Basic Details:
- Total area: 1762 sq meters
- Built area: 1695 sq meters
- Four levels, including basement
- 2-3 Dining areas, kitchen, reception area, lobby and storage areas
- Number of rooms: 38 plus 2 residential apartments
Background and Rationale for Renovation:
The Tel Aviv Hotel has been owned and operated by the Berenson Family for over 60 years. Despite its rich spiritual and educational resources, for many reasons outside the scope of this report, the Old City of Tsfat has developmentally lagged far behind other historic cities in Israel. Tsfat is an ancient city whose roots run deep to the very beginning of Jewish history. It is famed as a place conducive to contemplation and revelation, as well as artistic and spiritual inspiration. Thus, the city has been a long time haven for vacations and spiritual retreats. To date, Tsfat has no single centralized lodging facility of caliber that reflects the rich resources of the area.
A renovated hotel, with the addition of quality educational programs, retreats and conferences geared to both local and foreign visitors, will not only attract more people to the city, but will be the driving force to improve the standard of surrounding businesses. A common impression of Tsfat is that it is run down and primitive, lacking basic comforts, convenience, customer service and technology. Purchase and proper renovation of the hotel can transform the industry standard in Tsfat, putting the city, in particular its historic Old City, back on the map for everyone. It will provide higher level employment opportunities and restore the city as a rich economic and creative resource in the area.
Financing Required:
$2.5 million USD plus VAT / Minimum renovation cost: $1.5 million
For more information contact hotel at tsfat.com
