If You Can't Beat 'Em, Join 'Em: Israel's Biggest Hotel Chain to Offer Airbnb Rentals
Israeli hotels have been losing business to Airbnb, which often offers lower prices and a less institutional feel even if in recent years the site has become taken over more and more by professional renters
Fattal Group, Israel's biggest hotel chain, has apparently given up the battle against Airbnb and decided to join it. The move, which was first reported by Yediot Aharonot daily, quickly elicited an angry reaction from many in the hotel industry.
The chain has reportedly leased two buildings in the trendy Tel Aviv neighborhoods of Kerem Hateimanim and Neve Tzedek and fitted them as short-term rental apartments. They are being offered on Airbnb and other booking sites under the "Master" brand of Fattal's Leonardo Hotels unit.
"For some time we have been observing the changes occurring in the hotel sector globally where the biggest chain entered the short-term apartment rentals segment," Fattal said in response to the news. "We intend to continue examining closely those changes and update the services of the chain as all the world is changing."
Like their peers elsewhere, Israeli hotels have been losing business to Airbnb, which often offers lower prices and a less institutional feel even if in recent years the site has become taken over more and more by professional renters.
In Tel Aviv alone, industry sources estimate that Airbnb offers about 9,000 properties. Even as Israel has been hosting record numbers of incoming tourists, the number of hotel overnight stays has been declining in recent months, most recently by 3% year on year in September.
