The Dream of Yokneam's First Hotel Ends in 50 Million Shekel Debt

Nvidia's expansion in the north and its intention to build a new campus in Kiryat Tivon led in early 2026 to statements by the mayor of Yokneam regarding plans to build a 40-room hotel within city limits. However, this is not the first time an attempt has been made to build a hotel in the city. Calcalist has learned that a project promoted about a decade ago by the real estate company Li Marshall was shelved in 2020 after safety restrictions stemming from the land's proximity to an Elbit factory prevented its construction. The failure left the company with debts of nearly 50 million shekels, and it is now considering bringing in a partner or selling the land.

Even before the Nvidia expansion boom in the region in December 2025, Li Marshall promoted a plan to build a complex combining retail, offices, and a hotel on a plot of about 3.8 dunams in the Yokneam industrial zone. The local planning and building committee approved the rezoning of the land in 2019 to allow for the city's first hotel alongside retail and office space. According to the plan, the project was to include three underground parking floors, a retail floor, six office floors, and two hotel floors with about 50 rooms, as well as a conference hall, spa, and gym. The investment volume was estimated at about 120 million shekels, raised from investors through a dedicated partnership fund.

However, the project did not come to fruition. According to the company's controlling owner, Shay Nissim, one of the main reasons was the plot's proximity to the Elbit factory. Due to safety restrictions, it was required to move the hotel building back about six meters to meet regulatory requirements. Later, the company changed the plan to build an office building instead of a hotel, but this move also failed to progress, partly due to financing difficulties.

According to sources in the company's environment and the credit sector, Li Marshall is currently examining two alternatives: bringing in a partner to inject capital or selling the land. Recent developments surrounding Nvidia may impact the asset's value. The chip giant already has a large operational center in Yokneam following the acquisition of Mellanox, and it is simultaneously promoting the construction of a new campus in Kiryat Tivon.

The project's delay has deepened Li Marshall's financial distress. According to the Registrar of Pledges, the non-bank credit company Manif holds a first lien to secure a debt of about 30 million shekels and a second lien for an additional 18 million shekels. The assessment is that a land sale will allow for the repayment of at least part of the debt. Manif refused to comment on the extent of its exposure, citing banking secrecy, but stated: "The developer has been classified for several quarters as a debt in arrears, and provisions have been made in accordance with the value of the collateral and the collection forecast, backed by an appraisal. If necessary, we will activate the liens and we are prepared for this. In parallel, we are conducting contacts with buyers interested in the land and examining tax implications."

Manif, managed by Maor Duak, specializes in real estate financing and is traded at a market capitalization of about 1.5 billion shekels. Its credit portfolio amounts to about 4 billion shekels. Although the stagnation in the real estate market has not yet materially affected its results, about 1.3 billion shekels of its credit portfolio consist of loans whose original repayment date has been postponed.