May 20, 2009--American Colony Ltd. (TASE:AMCL.B1) will build a hotel in Jerusalem's German Colony neighborhood. The Jerusalem Regional Planning and Building Commission has deposited the company's plan for the Fiber Institute site, first established in the late 19th century by the Templars. The seven-dunam (1.75-acre) lot is located at the junction of Emek Refaim Street and Bethlehem Road.

The Templars built public buildings, including a school and Beit Ha'am on the site. The British Mandatory authorities used the property before independence. The Fiber Institute took over the property in the 1960s.

Two years ago, the Jerusalem Regional Planning Commission rejected a proposal for a hotel on the site. The new plan incorporates changes made at the insistence of the Ministry of the Interior. The original school and Beit Ha'am will be preserved in full. Beit Ha'am will be used for public activity by local residents under a deal between American Colony and the Community Administration.

American Colony will build a 200-room eight-storey hotel, which will incorporate the two school buildings. 18 apartments will be built over another building slated for preservation.

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