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Five-Star Hotel Opens in Gaza

Flat screen TVs, hand-carved beds and five luxury restaurants; but just 10 guests

By: Sammy Hudes
Published: August 10th, 2011 in Business » Israel
The five-star Al-Mashtal Hotel in GazaPic: AP

Amid poverty and unemployment, a five-star hotel has opened its doors in Gaza, which is known as one of the most densely populated areas of land in the world.

The Arcmed Al-Mashtal Hotel features 222 rooms spread out between eight stories. Almost each room is decorated with flat screen televisions, ornate metal-worked lamps, sea views and hand-carved beds. In addition, the hotel is home to five luxury restaurants, a piano bar, an oak reception desk, a marble-floored lobby and a lavish swimming pool surrounded by landscaped gardens.

The project to build the Al-Mashtal began 13 years ago in 1998, as the developer of the hotel, Palestinian investment company, Padico expected it to attract many tourists. When Pacido began construction of the $47 million building, the Palestinians had just signed interim peace agreements with Israel, providing plenty of optimism for the future. But by 2001, Gaza was a zone for violence once again.

In 2006, the shell of the hotel was put in place, and was then damaged the following year during a civil war between Hamas and Fatah. The Al-Mashtal was damaged even further in December 2008, during the war between Israel and Hamas that lasted three weeks.

After Israel eased the blockade of Gaza in May 2010, following a deadly battle with Turkish activists aboard a flotilla, the final touches of the repaired hotel were finally completed. Pacido was finally able to receive the materials that it needed, such as gym equipment, and added them to the building.

The Al-Mashtal was opened in late July, years behind schedule. A Pacido official told Ynet that he expects the hotel to test its fortunes over the next couple of years.

“We’ve done our homework. We are leaving the rest for politicians and militants to decide,” he said.

So far, the hotel has not had much success. The hotel management has made only 80 rooms available, citing the lack of will to spend on maintenance for the remaining rooms. Earlier this month, only 10 guests were staying in the entire hotel as there are no foreign tourists in Gaza and just a few Western aid officials who pass through. Women are not allowed to swim in the pool due to conservative Gaza tradition and no alcohol is permitted in the hotel as it is banned by Hamas in line with Islamic law.

Pacido is controlled by politically independent billionaire Munib al-Masri, who says he hopes to recover at least some of the hotel’s costs and that the hotel will solve some of Gaza’s problems in the upcoming years.

“It’s risky – but we need to have a change in Gaza,” said public relations manager, Shadi Agha.

This is not the first lavish building to open in Gaza in recent memory. Last year, a luxurious mall opened in Gaza City, featuring air conditioning, a large supermarket, a food court, a parking lot and security guards. Despite Hamas’ claims that the Gaza Strip suffers from a lack of construction material and basic needs, customers of the mall say that it would not have been out of place in any Western country.

Related articles: Hotel, Gaza, Al-Mashtal, Israel, Hamas, Fatah, Pacido
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