The Palace Jerusalem is expected to debut in 2010 - the historic property will form part of development featuring approximately 220 rooms and suites.

Hilton Hotels Corporation and IPC Jerusalem Ltd have today jointly announced the execution of a management agreement to introduce the first Waldorf=Astoria Collection hotel in Israel.

To be known as The Palace Jerusalem - The Waldorf=Astoria Collection. In addition, approximately 30 Waldorf=Astoria Collection residences are expected to be developed on the site.

Welcoming today's announcement, Wolfgang M. Neumann, President of Hilton Hotels Europe, said: "Israel is enjoying continued rapid and robust commercial activity which is fuelling a strong demand for high quality hotel brands. We are very pleased to be working with IPC Jerusalem Ltd to introduce what will be a magnificent hotel and a superb addition to The Waldorf=Astoria Collection."

Neumann added: "With two existing properties located in key Israeli destinations, the introduction of this prestigious brand reaffirms our commitment to integrating our successful Hilton Family of Brands into key markets throughout Europe."

"Every aspect of The Palace Jerusalem is special", said Y. Dov Meyer of IPC. "It is a combination of a world class developer, the perfect location, a unique historic building and now a member of an exclusive brand.

Jerusalem is benefiting from a renaissance of new high-end developments; however, for our customers, location and design are simply not enough. The Palace has taken this trend a step further by offering its residents the combination of privately owned homes together with the opportunity to have services of a luxury full-service hotel."

Hilton currently operates two hotels in Israel – the Hilton Tel Aviv and Hilton Eilat Queen of Sheba. The newest addition to the company's Israeli portfolio is situated in one of Jerusalem's key locations, at the intersection of King David, Agron and Mamila Streets, just steps from the Old City. Built in 1929, the impressive structure is currently undergoing an extensive renovation programme, which will see the historic facade of intricate stone carvings and decorative arches fully restored, as well as a complete rebuilding of the interior.

The hotel will offer 220 spacious suites and guestrooms, with facilities including a choice of three restaurants, a 500m2 spa and fitness facility with pool, in addition to extensive conference and meeting facilities and on-site parking. Sited adjacent to the hotel, the luxurious Residences at The Palace Jerusalem - The Waldorf=Astoria Collection will have views of the Old City and will enjoy access to services from the hotel.

Today's news also reflects The Waldorf=Astoria Collection's fast moving international expansion, having recently announced plans to introduce its first European property in Rome this spring, following the re-branding of the Rome Cavalieri.