The Jerusalem District Planning and Building Committee has given final approval to a plan to redevelop the historic Orion Cinema complex in the capital, including 202 residential units, 140 hotel rooms, commercial space, approximately 3,300 square meters of space for public facilities and a public plaza. The historic cinema will be preserved and reopened as a movie theater and cultural venue.
The plan, which was approved for public review in February 2025, aims to revitalize one of the most prominent sites in the heart of Jerusalem through a mixed-use development combining housing, hotels, commercial space, public institutions and open areas, while preserving the site's historic buildings and architectural heritage.
The project, located between Hillel, Shammai and Histadrut streets, near the light rail route along King George Street, will include 202 apartments in two residential towers of 34 and 30 stories. About 30 of the apartments will be smaller units measuring up to 55 square meters. The plan also includes a 12-story hotel with 140 rooms and commercial storefronts along the surrounding streets.
At the center of the complex, a green urban plaza will be established. According to the committee, it will "serve as an open public space for recreation, relaxation and social gatherings, encourage walking in the city center and improve connectivity between Hillel, Shammai and Histadrut streets."
One of the plan's central elements is the preservation of the historic Orion Cinema and its return to operation as a movie theater and cultural venue after 30 years. The restoration will retain the building's distinctive architectural features, including its characteristic steel structure. The plan also calls for preserving Lifshitz House as part of efforts to combine new urban development with the protection of central Jerusalem's historical heritage.
The architectural features will be preserved. Jerusalem's Orion Cinema complex
(Rendering: Ian Bader Architects)
The project, initiated by the Tanufa company and designed by the international architecture firm Ian Bader Architects, also includes approximately 3,300 square meters of built space designated for various public uses, including a college, school or cultural institutions.
Orion Cinema is considered one of Jerusalem's most iconic landmarks and legendary cultural institutions. It opened in July 1938 in the city center, with a distinctive semicylindrical design and a lightweight roof supported by steel arches, inspired by Radio City Music Hall in New York. At its peak, the theater had approximately 1,400 seats, including a special balcony reserved for British high commissioners and Zionist officials. It was established through a partnership between Daoud Dajani, the Dabbah family, and Moshe Yosef Mizrahi and his sons, before eventually coming under the Mizrahi family's full ownership.
The cinema continued operating until the 1990s, after which the building served various purposes, including housing a McDonald's restaurant. In 2018, the building was renovated and converted into a hostel and cultural center called Cinema Hostel, with the aim of preserving the site's historical legacy. The cinema's restoration will now be carried out as part of the larger redevelopment project. The preservation initiative was inspired by the restoration of the historic Esther Cinema in Tel Aviv's Dizengoff Square and its conversion into the Cinema Hotel.
Inspired by Tel Aviv's Dizengoff Square; Jerusalem's Orion Cinema complex
(Rendering: Ian Bader Architects)
Architect Dan Keinan, Jerusalem district planner at the Planning Administration, said: "The plan represents a significant step forward for the renewal of Jerusalem's city center and presents a unique model that combines intensive urban development with the preservation of historical and architectural heritage. Alongside the addition of housing, commercial space and hotels, the plan places special emphasis on the quality of public spaces, the establishment of educational and cultural institutions and the creation of a green urban plaza in the heart of the city.
"Bringing the historic Orion Cinema back into operation is an important part of strengthening the cultural identity of central Jerusalem and transforming it into a vibrant, active and accessible urban hub for residents and visitors."