Leadership Under Pressure: How The David Kempinski Tel Aviv Turned Crisis Into an Operating Philosophy

Opening during the COVID-19 pandemic as one of the first international luxury properties in Tel Aviv and then operating through one of the most complex geopolitical periods in the region's recent history, the David Kempinski Tel Aviv has become an unlikely case study in adaptive hospitality leadership through turbulent times. Rather than treating resilience as a temporary response to crisis, General Manager Guy Klaiman now believes that resilience must become part of a hotel's operating philosophy.

Typically, General Managers are trained to manage demand cycles. They know how to budget, forecast, recruit, retain talent and deliver consistent guest experiences. But what happens when none of the assumptions those plans are built on remain true?

For Guy Klaiman that question has defined much of the hotel's existence. Operating through challenging periods, he has seen his role as a hotel leader quickly become less about following annual business plans and more about making informed decisions with incomplete information.

"We're taught to plan months, sometimes years ahead," he says. "Very quickly, we found ourselves making decisions week by week, sometimes day by day."

Yet despite the volatility, the hotel remained operational, retained its luxury positioning and maintained the service standards expected of the Kempinski brand, breaking records and securing some of the best ever performing months within crisis periods. Looking back, Klaiman believes the experience has fundamentally changed how he thinks about leadership - not as a series of reactive decisions, but as the ability to build an organisation capable of adapting continuously. We sat for a candid conversation to discuss his key learnings.

Since October 7, 2023, luxury hotels in Israel have had to navigate an operating environment unlike almost anywhere else in the world. Can you walk us through what that period has looked like at The David Kempinski Tel Aviv - from the sharpest changes in occupancy and demand, to the conversations with Nahal Group as owners, to the human consequences for your staff? What were the major turning points, and how did each one reshape the way you led the hotel?

Throughout this period, one principle guided every decision we made: luxury hospitality is ultimately a business built on relationships- with our team members, our guests, our owners, our travel partners and our community. During times of crisis, those relationships become your greatest asset. That belief shaped every decision we made. Our first priority was our people. We firmly believed that if we took care of our team, they would continue taking exceptional care of our guests.

We made a conscious decision that no team member would be permanently laid off as a result of the crisis. While some employees were placed on temporary government-supported leave as business levels fluctuated, they remained very much part of our Kempinski family. They continued to have access to the hotel's staff facilities, including daily meals in the team restaurant, and colleagues whose homes lacked adequate shelter were welcomed to stay at the hotel whenever needed.

Just as importantly, we remained connected. We held regular team gatherings, maintained frequent communication, and ensured that anyone requiring professional or personal support knew they were not facing this period alone. Preserving our culture and supporting one another became every bit as important as running the hotel itself.

While there was an immediate decline in demand following October 7, the impact on occupancy was relatively short-lived and primarily concentrated around specific dates. We were able to stabilise our business quickly and continued to welcome a steady stream of guests throughout the period.

Remaining one of the city's leading luxury hotels during such a challenging time was not simply a commercial achievement- it reflected the trust our guests place in us, the consistency of our service, the strong relationships we've built since our opening in 2022, and the confidence they have in the safe and welcoming environment we provide.

What role has AI played in lowering your business operational costs and improving guest experience? Conversely, how have you enhanced the in-person experience for staff to ensure guests have the best possible onsite experience?

AI and technology are incredibly valuable in helping us gather insights, recognise patterns and better understand guest preferences. They support our teams by making information more accessible and allowing us to anticipate needs before a guest even asks. However, true luxury hospitality is never one-size-fits-all.

Every guest has different expectations, different travel motivations and different definitions of what makes a stay memorable. AI provides information; our people transform that information into meaningful, personalised moments.

Whether it's recognising a returning guest's favourite amenity, remembering dietary preferences, anticipating a special occasion or creating an unexpected gesture that reflects why they're travelling, every interaction is carefully considered. We constantly ask ourselves not simply "What does this guest need?" but "What would make this guest feel truly valued?"

Following these past years, how would you say the David Kempinski Tel Aviv and its staff now differ from other Kempinski properties worldwide? What effective changes or recommendations that have worked well for you can you give hotel managers and staff in other destinations to help optimise their operations and manage their respective crises?

Every Kempinski property reflects its destination, but the past few years have shaped our team in particularly profound ways. Operating through an extended period of uncertainty required resilience, creativity and adaptability on a daily basis. Our team learned how to remain flexible while never compromising the standards of luxury hospitality.

Rather than waiting for recovery, we used quieter periods to improve ourselves. We invested heavily in training, strengthened cross-functional collaboration and encouraged every department to think creatively about delivering exceptional guest experiences despite challenging circumstances. As a result, our culture became stronger than ever.

One of our greatest advantages is the strength of the Kempinski culture and its commitment to developing people. The brand provides exceptional training programmes that establish a consistent foundation of luxury hospitality, leadership and service excellence across the world. Here in Tel Aviv, we've built on that foundation by adding a distinctly local dimension. Israeli hospitality is naturally warm, intuitive and personal, and we encourage our teams to combine Kempinski's refined luxury standards with the authenticity and genuine care that characterise our destination.

The result is an experience that is unmistakably Kempinski while remaining deeply connected to Tel Aviv.

After only four years since opening, we've built not simply a hotel but a loyal community. Many guests return not only because of the property itself, but because of the relationships they've developed with our people. They return to familiar faces, remembered preferences, and a genuine sense of belonging.

One lesson I would share with other hotel leaders is that during a crisis, culture becomes your greatest competitive advantage.

Operational flexibility matters, but your people matter even more.

Invest in training even when occupancy is low. Empower employees to make meaningful decisions. Maintain service standards even when it's difficult. Most importantly, continue creating memorable experiences because guests will remember how you made them feel long after they forget the circumstances surrounding their visit.

Given airline cancellations and a general drop in tourism due to security fears, how has your audience targeting changed or adapted to ensure occupancy rates remain? Have you noticed new booking habits or changes and have you introduced new booking measures (such as free cancellation or easy rebooking options) to allow for flexibility?

The changing travel landscape required us to become much more agile in both our commercial strategy and our guest engagement.

We maintained close relationships with our international guests and partners, communicating regularly and reassuring them that whenever they were ready to return, we would be ready to welcome them. We also adapted to changing booking behaviours which became much more last minute by applying flexible booking policies, cancellation terms, and rebooking options, recognising that flexibility became one of the most important elements of guest confidence.

One of the first decisions we made after October 7 wasn't about occupancy, it was about partnership.
We immediately contacted our travel partners and agents around the world. Rather than simply reassuring them of our flexibility, we proactively requested their bank details and refunded any advance payments they had on account.

We recognised that many businesses throughout the travel ecosystem were facing enormous uncertainty, and we wanted to ensure they had the liquidity they needed during an exceptionally difficult period. Our thinking was deliberately long-term. These partners have supported us since opening, and their success contributes directly to our own. Investing in those relationships during a crisis strengthens trust, creates stability and builds loyalty that extends well beyond the immediate situation.

When regular flights from the United States, our key feeder market, resumed, we witnessed something particularly meaningful: many guests didn't simply return - but rather they came home. That level of loyalty reflects the relationships we've built over the past four years.

Ultimately, occupancy is not driven only by marketing or pricing. It's built through trust, consistency and genuine human connection.

During such an extended period of uncertainty, what kind of support did you receive from Kempinski as the operating group? How did the brand help you navigate decisions around crisis management, service standards, staffing, communications, guest reassurance, and long-term positioning—and where did local leadership at the hotel need to adapt beyond the usual brand playbook?

Kempinski has always stood behind us. Even before the current situation, our relationship was built on continuous dialogue, strategic collaboration and mutual trust.

Throughout this regional crisis, that partnership became even more important. The corporate team understood that the challenges we were facing were unique and evolving, and they remained closely engaged with us through regular conversations around strategy, budgeting, forecasting and long-term planning.

Rather than expecting us to follow a standard playbook, they recognised that the realities on the ground required flexibility and empowered local leadership to make decisions appropriate for our market while ensuring we remained aligned with the values and standards of the Kempinski brand.

That balance, between global guidance and local agility, allowed us to respond quickly while maintaining consistency, protecting our people and continuing to deliver the luxury experience our guests expect.

The one lesson Guy would like other Hoteliers to take away from his experience, isn’t revenue management, marketing or technology. Instead, he returns to the lesson that shaped every major decision over the past several years. "Invest in your people, even when business is slow. Keep training. Communicate honestly. Protect your culture. Everything else becomes much easier to rebuild."