Unique Boutique Hotels in Israel and Palestine

Some travellers prefer to avoid thinking about the previous occupants of their hotel rooms; however, a new crop of Israeli and Palestinian boutique hotels has begun repurposing historic buildings such as hospitals, villas, and even prisons into luxury suites and spas. These hotels cater to visitors who deliberately choose lodgings with a rich historical background.

Scattered across the region, these luxury accommodations combine unique patina and charm with modern amenities that eluded the buildings’ earliest residents. There is no shortage of timeworn structures here. Repurposing them as hotels often provides a cost-effective solution for the expensive architectural restoration process that might otherwise be unaffordable for individual owners. Whether you choose to stay for a night or just enjoy a drink at the bar, these Israeli and Palestinian hotels are destinations with rich stories waiting to be uncovered.

The Jaffa, Jaffa, Tel Aviv

Atop a hill overlooking the shimmering Mediterranean and a boathouse-laden Jaffa port stands an impressive neoclassical building, initially created in the 19th century as a French hospital and later used as a convent. In mid-2018, the building reemerged as The Jaffa, a blend of luxury hotel and apartments. The coexistence of the old and the new is instantly visible in the sleek modernist lobby, where a 13th-century Crusader bastion wall meets chrome and mid-century mod orange lounge chairs. The most striking feature is The Chapel, a sanctuary transformed into a hotel bar, complete with sangria and stunning stained glass windows.

The Setai, Jaffa, Tel Aviv

For years, the corner prison cell window of Jaffa’s Kishle (Turkish for ‘jailhouse’) was sealed with concrete, discouraging passersby from interfering with inmates; however, that cemented inlay has been cleared. Lodgers in the cell-turned-luxurious suite – part of The Setai, a luxury hotel that opened in 2018 – can relish unrestricted views of Clock Tower Square, as well as privileged access to one of the best-preserved ancient structures in Jaffa. Originally a 12th-century Crusader fortress, the five-structure compound has been a part of every conquering force that traversed Jaffa and was still a police station until 2005. Now, the rooftop infinity pool with ocean sunset views and subterranean Turkish hammam are attractions where guests might find themselves happily ‘imprisoned.’

Drisco Hotel, Tel Aviv

When this modest three-storey building at the entrance to Tel Aviv’s American Colony neighbourhood was first constructed by the Drisco brothers in 1866, it offered well-appointed rooms and European-friendly menus to pilgrims journeying to Jerusalem. Journeys to the Old City during the 19th century were often long and bumpy, making the Jerusalem Hotel (as it was initially named) a welcoming stop along the way. However, circumstances shifted in the mid-20th century, leading to multiple ownership changes: it served first as a British military headquarters, then as immigrant housing, and eventually became the Israeli Ministry of Education. During the 1960s, the building fell into disrepair, until a decade-long restoration process revived its original glory as the Drisco Hotel, which opened in 2018, named after its original developers.

Efendi Hotel, Akko

Recycling historic walls isn’t a new concept, and that’s abundantly clear at the Efendi Hotel, where two Ottoman palaces, built upon the foundational remains of Byzantine buildings, have been elegantly adapted into a contemporary boutique hotel. Adorned with timeless design elements – decorative plaster, fresco paintings, and vaulted ceilings – the hotel stands out remarkably in the enchanting ancient city of Akko, where arched stone buildings populate impossibly narrow alleyways. Beyond its aesthetic appeal, Efendi is also a five-star culinary destination. The hotel is the passion project of local and legendary restaurateur Uri Jeremias, whose namesake seafood eatery Uri Buri is conveniently located just a short walk away.

Dar Sitti Aziza, Bethlehem

The front door of this Ottoman-era merchants’ house in Bethlehem was designed wide enough for a pack-laden camel to walk through; today it welcomes travellers wishing to stay in a historic setting infused with a warm, familial atmosphere. Located steps away from the Church of the Nativity, the home now known as the Dar Sitti Aziza has remained in the same family for generations, named in honor of a beloved matriarch, Aziza Shaheen.

As a former private residence, Dar Sitti Aziza features a modest collection of nine rooms, each with a unique original purpose. The spacious chambers include the former horse stables and Bride of Bethlehem rooms, the latter adorned with stonework windows designed to display the family’s wealth and assure a bride-to-be that she would be well cared for – a message that resonates to this day. The homegrown charm extends to the included breakfast, where tables on the terrace overflow with homemade date and semolina cakes, fragrant Turkish cardamom coffee, freshly baked bread topped with zaatar (a Middle Eastern spice blend), and local cheeses and vegetables.

American Colony Hotel, Jerusalem

Room number 1 at Jerusalem’s American Colony Hotel once served as the bedroom of Ottoman pasha Effendi El Husseini, where each of his four wives had separate chambers for various seasons. Despite the potential for many heirs, the pasha passed childless in 1894, leading to the sale of the spacious home. Its wealth of rooms opening onto a leafy cloistered courtyard made it perfectly suited to serve as a hotel, and it remains one of Jerusalem’s finest accommodations.

Initially, the hotel was acquired by a commune of spiritually minded Americans and Swedes who decided to make Jerusalem their home. To sustain themselves, they opened local businesses, tended livestock, and eventually utilized their large compound to host out-of-town guests. Word soon spread among savvy travellers, and the American Colony Hotel became a favorite among well-to-do individuals and diplomats alike. Today, visitors can still experience the historic charm, particularly by heading underground to the vaulted Cellar Bar, which now serves beverages instead of dairy.

Talitha Kumi Guest House, Beit Jala

Perched on a hilltop in Beit Jala, the Talitha Kumi Guest House provides stunning views of the valleys surrounding Bethlehem and, on a clear day, even the Jordanian landscape. Initially founded as a school for Arab girls in Jerusalem, Talitha Kumi has expanded over time to include a modest inn, with proceeds supporting its educational program. While the rooms are simple, the idyllic greenery and flourishing vineyard create a calming atmosphere. Meals offered at the dining hall feature an abundant selection of traditional local fare.

Villa Brown, Jerusalem

Dr. Isaac D’Arbela built this elegant Jerusalem stone house in the early 20th century, strategically located across the street from the clinic he managed. While the hospital is no longer standing, D’Arbela’s residence has transformed into a space for hospitality. Centrally positioned, the hotel lies within walking distance of the Old City, and complimentary bikes are available for guests to explore both the ancient and modern aspects of Jerusalem. Villa Brown has been thoughtfully redesigned to reveal the original stone walls while expanding the property with two additional floors and contemporary amenities. Amidst traditional elegance, today’s visitors are likely to appreciate new indulgences, such as a rooftop spa and jacuzzi.

Scots Hotel, Tiberias

A century ago, a Church of Scotland mission dispatched a young Dr. Torrance to Tiberias to provide medical assistance to all patients, irrespective of their religious backgrounds. The doctor and his team built a hospital near the banks of the Sea of Galilee, where Jesus is said to have preached and performed miracles, aiming to offer care of their own. However, as modern medical facilities emerged in the area, the original hospital became redundant. The Church of Scotland sought to retain its property overlooking the lake but needed a new purpose. In 2004, it was renovated and transformed into the Scots Hotel, complete with canopy beds and spa amenities. Today, guests are treated to a true Scottish welcome, including a glass of scotch upon check-in. Dr. Torrance’s presence remains, as he oversees from his burial site near the hotel pool.