Beresheet Hotel Sues Local Council Over Arnona Rates During Evacuee Hosting

Beresheet Hotel in Mitzpe Ramon has filed an administrative appeal against the local council, demanding property tax (arnona) to be calculated according to residential rather than hotel rates for the period it hosted evacuees following the October 7 attacks. During the war, the luxury hotel housed evacuees from the Gaza envelope and northern Israel, operating as a 100% evacuation facility until February 2024.

The Transformation of a Luxury Hotel

According to the legal appeal filed at the Be'er Sheva District Court, the hotel's character fundamentally changed. Public spaces, event halls, and offices were converted into kindergartens, classrooms, psychological treatment rooms, and headquarters. Evacuees cooked in rooms, walked through the lobby in pajamas, and brought pets and personal household equipment, turning the upscale resort into a residential compound.

"We made a decision to stand with the state until the end. We were a 100% evacuation hotel. You probably don't understand and are a bit disconnected," said Beresheet Hotel CEO Asher Pinto during the local assessment committee hearings.

Arnona Dispute and Local Council Response

The local assessment committee rejected the hotel's request, arguing that tax relief applications should be directed to the government rather than the local council, which itself faces severe financial challenges while funding educational and municipal services for evacuees. Isrotel, the hotel chain operating Beresheet, emphasized that while they are proud of helping the nation in times of crisis, the compensation provided by the Ministry of Tourism did not reflect standard operational revenues, making standard hotel arnona rates unjustifiable for a period when regular tourism was entirely suspended.