The Dream of the First Hotel in Yokneam Ends in Debts of 50 Million Shekels

The dream of establishing the first hotel in Yokneam has ended in debts of about 50 million shekels for the real estate company Lee Marshall. The project, promoted about a decade ago, was shelved in 2020 due to safety restrictions from the proximity of the land to the Elbit factory. The company is considering bringing in a partner or selling the land, while developments around Nvidia may affect the property's value.

The dream of establishing the first hotel in Yokneam has ended in debts of nearly 50 million shekels for the real estate company Lee Marshall. The project, promoted about a decade ago, was shelved in 2020 after safety restrictions arising from the proximity of the land to an Elbit factory prevented its construction. The local committee approved the land use change in 2019, and the plan included three floors of underground parking, a commercial floor, six floors of offices, and two hotel floors with about 50 rooms, along with a conference hall, spa, and gym. The investment was estimated at about 120 million shekels. According to the controlling shareholder, Shai Nissim, the hotel needed to be set back an additional six meters due to safety restrictions. Later, the company changed the plan to an office building, but that also did not progress due to financing difficulties. Now the company is considering bringing in a partner or selling the land. According to the Registrar of Pledges, the credit company Maniv holds a first lien for a debt of about 30 million shekels and a second lien for a debt of about 18 million shekels. Maniv stated that the developer is classified as a debt in arrears and that it is prepared to exercise the liens. Developments around Nvidia, which is promoting a campus in Kiryat Tivon, may affect the property's value.