As Hotels Adapt To New Reality, Israelis Flock To Long-Term Hotel Rentals

TEL AVIV (VINnews) — In normal times, the Dave Levinsky boutique hotel, situated in the trendy neighborhood of Nahalat Binyamin, would cost over 350 NIS (105$) a night, but coronavirus is no normal time and the hotel needed to seek a way to survive without tourists. The solution adopted by Leon Avigad, the owner of the Brown network of boutique hotels was very simple: rent out rooms for inexpensive long-term rentals until the tourists return. The price is surprisingly low considering the location and the amenities a hotel offers: Just 3500 NIS (1050$) a month. The price includes all utility expenses -water, gas, municipal rates, as well as providing maintenance and cleaning services. Rooms include a minibar and there is a communal kitchen with cooking appliances available. Guests receive towels, bedding and toiletries from the hotel. A gym and a stunning rooftop are also part of the package which has led many Israelis to leave expensive apartments and enjoy the hotel experience.

The Brown network which consists of 21 boutique hotels in Jerusalem and Tel Aviv, adapted all but 6 of its hotels for long-term rental and almost all are full with a variety of people: Young people, divorcees, those who want to take life easy and alway dreamed of living near the sea in Tel Aviv. The more expensive hotels with larger suites rent for 5000 NIS (1500$), a price which in normal times would have allowed guests about a week in the hotel. Avigad admits in a Maariv interview that the prices he is asking cannot maintain the hotels economic viability “but it helps pay some of the rent. We are trying to do whatever possible despite the complexities.”

Jerusalem’s Post Hostel is situated in the center of town in the historic building of the post office. Alex Talianski, the hotels CEO says that “in the coronavirus period tourism ended and we need somehow to live. This is how the trend of long-term rentals began. We started only last month and this allows us to keep our heads above water and provide a solution for people who need a place.

The hostel, which boasts 43 rooms, is at present holding 30% occupancy, all long-term rentals. The amenities include a communal kitchen and lobby with all that is required to prepare food. The price, which would normally be 390 NIS per night, is now just 2800 NIS a month (820$) for a 12-meter room. A two-floor gallery which can sleep three partners costs 4,200 NIS (1260$). Talianski says that “you won’t find apartments to rent at these prices. Tourism would bring us more of course but one needs to adapt to the new reality. The residents of course gain from this, they live in a young, yuppy, well-designed place and meet people like themselves who wanted cheap housing. We decided that when things go back to normal, some of the rooms will remain for long-term rentals.”

The Post Hostel, Jerusalem

One of those enjoying the Tel Aviv boutique is Aleen Shaked, a 26-year-old food entrepeneur who moved there with her boyfriend after returning from abroad. She says that “the room is designed on a high standard, the hotel is new, everything is maintained well and clean. There are communal open spaces and a lovely roof where we can entertain friends. Room service can be ordered for 75 NIS.

Shaked admits that she misses the larger area of an apartment which she could design for herself but says that “at present this is perfect for me.” Many other Israelis who chose the hotel option would agree that – even for the hopefully short-term period of coronavirus – there is nothing which beats living in a hotel.