After ten years of discussions, the Jerusalem Regional Planning and Building Committee this week authorized the municipality to issue building permits for a Waldorf Astoria Hotel, part of the Hilton Hotels Corporation. The $107 million project is being constructed by IPC Jerusalem on the site of the Palace Hotel and the historic customs house between Agron Street and King David Street, close to the Alrov Mamilla Avenue shopping and luxury residence complex and the Old City of Jerusalem, Globes reported.

The hotel will have 180 rooms and 40 suites. Next to it, an eight-storey residential building with 28 units will be constructed. Because the site is listed for preservation, the project encountered many objections at the beginning of the year. The local planning committee rejected the objections and instructed developers to design the facade of the hotel in keeping with its listed status.