A luxury rural-style hotel is set to be built in Kibbutz Nir Am, near the Gaza border, in a project valued at 80 million shekels ($22 million). The hotel, the first of its kind in the region, will feature 55 rooms, a spa, and a high-end restaurant led by celebrity chef Eyal Shani. The restaurant will be open to both hotel guests and outside visitors.
Nir Am is the only kibbutz along the border with a historic zoning plan for tourism. The hotel will span 17 dunams (4.2 acres) at the northern edge of the kibbutz. With limited lodging options in the region, the project is seen as a significant economic and tourism opportunity.
Kibbutz representatives recently signed a memorandum of understanding to establish the hotel in partnership with an impact investment group led by Israeli-American investor Adir Waldman, American-Jewish businessman Jack Eisenstadt, and investor Simon Greenbaum Gross. The trio will spearhead capital fundraising, primarily from international sources.
The hotel will be operated by FunDaMental, a hospitality group headed by Eli Shaked, which specializes in rural tourism and currently runs the slowness guesthouse in Kibbutz Moran. The group is also developing a similar project in Kibbutz Harduf.
The restaurant will be managed by the culinary group Ha'Chevra Ha'Yoter Tovim, in collaboration with Shani. Architect Dana Oberzon has been selected to design the hotel, which is expected to open within three years. The buildings will blend into the kibbutz landscape and offer an authentic rural hospitality experience in the Negev desert.
The deal is expected to generate over 30 million shekels ($8.2 million) in revenue for the kibbutz, strengthening the local economy and supporting regional development.
Nir Am gained national attention during the October 7 Hamas-led attack on Israel, when its residents were spared due to the efforts of IDF Golani Brigade troops, Border Police officers, and the kibbutz's security team, which repelled the attackers. A power outage also prevented the perimeter gate from opening, thwarting an attempted infiltration.
Kibbutz business director Roi Ben Yehud said the hotel project began when Waldman visited the region looking for ways to support local recovery. "We met by chance when he came to explore potential hotel locations, realizing there were virtually no lodging options in the area," Ben Yehud said. "If Gaza is eventually rebuilt and international companies come to assist, they will likely stay here."
Get the Ynetnews app on your smartphone: Google Play: https://bit.ly/4eJ37pE | Apple App Store: https://bit.ly/3ZL7iNv
Nir Am, a privatized kibbutz, currently operates a small 23-room guesthouse, which has been used by the military since October 7. The kibbutz primarily relies on agriculture and a shared dairy farm with neighboring Nir Oz. However, the war has severely impacted local farming. A banana plantation was lost due to harvest disruptions, and 80 dunams (20 acres) of crops sustained damage, with compensation expected to reach 10 million shekels ($2.7 million).
Additionally, the kibbutz owns Mekesef, a longstanding cutlery manufacturing plant.
Strategically located about 55 minutes from Tel Aviv and within walking distance of the Sderot train station, Nir Am aims to become a gateway for visitors to the region. "We hope the hotel will attract not only Israeli tourists but also international visitors," Ben Yehud said.