The past few years have been difficult for the historic American Colony Hotel in Jerusalem. The decline in tourism following the coronavirus pandemic and the security situation hurt occupancy and revenues, to the point that closing the hotel was considered. In an interview with “Jerusalem Online News,” hotel CEO Alex Nassar speaks about the challenges facing the American Colony, the hope and the strategy guiding the hotel through complex times.
Today, in the heart of Jerusalem, inside an Ottoman gem more than 160 years old, the American Colony Hotel continues to offer a unique hospitality experience, precisely at a time when the tourism industry is facing unprecedented challenges. The veteran hotel is choosing to look ahead, renew itself and adapt to a changing reality.
“There is no doubt that this is a particularly challenging period,” Nassar says. “We are seeing the beginning of a certain return in tourist traffic, but it is still very far from the numbers we knew before the war. It is important to remember that the aviation industry has not yet fully recovered, and many airlines are still not operating in Israel. This directly affects the ability of tourists to reach here. There is definitely some movement. Tourists are starting to arrive, but the numbers are significantly lower than what we knew in the past. Every improvement is encouraging, but there is still a long way to go.”
Who is arriving at the hotel these days?
“The hotel serves as a base for foreign media outlets arriving to report on events in Israel, so we have hosted dozens of foreign crews in recent months. Alongside them, we are seeing tourists beginning to return. Most of our effort today is directed at the Israeli audience. We are doing everything we can to attract local guests and offer them a different, calming and high-quality experience, a place of quiet escape and breathing space during this complex period we are all going through.”
How much has the recent period affected daily operations?
“Very much. The recent wars affected everything, the number of guests, the employees and the general atmosphere. We have been operating for more than 120 years, but over the past two years the challenges have been especially large, and there were thoughts about whether it was right to continue operating the hotel.”
Were there moments of real concern for the hotel’s future?
“Absolutely. There were months when occupancy was very low and the economic reality was complex. But the owners believed in the hotel, in the employees and in the future of tourism in Jerusalem. The decision was to continue investing and not give up, out of faith that the industry would recover and that Jerusalem would always remain a sought-after destination. The owners always believed in the uniqueness of the hotel and in its meaningful place in the Israeli tourism landscape. In addition, at a time when it is difficult to travel abroad, we are seeing more and more Israelis discovering the unique experience the American Colony offers.”
Are new audiences discovering the American Colony?
“Absolutely. We are seeing more Israelis discovering us for the first time, couples looking for an intimate and high-quality vacation, businesspeople and Jerusalem residents themselves. Many diplomats enjoy spending time with us, and recently their numbers have been growing.”
Why should Israelis visit the American Colony now?
“This is an opportunity to enjoy an international-level vacation in Jerusalem, in a place with history, beauty, quiet and exceptional service. At a time when flying abroad is not always simple, the American Colony gives a real feeling of being overseas, just a short drive from home.”
How does this translate into Israeli prices?
“We launched a special summer offer that allows guests to enjoy an international-level hospitality experience at an accessible price. During June, July and August, we are offering midweek accommodation, Sunday through Wednesday, starting at NIS 999 per night for a couple. In addition, on Sunday through Wednesday we allow late checkout until 4:00 p.m. at no extra charge, subject of course to availability. For us, this is an important step, both businesswise and value-wise. People today are looking not only for a vacation, but also for quiet, space and an opportunity to disconnect for a few days.”
What is your vision for full tourism recovery?
“The rationale is to continue being one of the leading boutique hotels in Israel, one that offers an exceptional hospitality experience. When tourism returns, we will want to combine the long-standing international audience with the Israeli audience that discovered us during the recent period, and continue developing while maintaining the highest standards.”
