A hotel vacation unit is an asset whose income depends on the contract with the hotel. Therefore, before checking the price, you should check exactly what is being purchased, who operates the unit, and who pays you. Livo does not guarantee returns, and what is written is based on public publications only.
What ownership structures exist for hotel vacation units?
According to a Walla article from 5.10.2009, reviewed on 29.10.2026, several models were described: a 40-year right of use where the hotel remains the owner of the unit, sale to private individuals and registration in the Tabu (land registry), and an arrangement where the buyer stays in the unit for up to three months a year and the hotel rents it out the rest of the time. This information is 17 years old, so it presents types of arrangements rather than the current market situation. Any current offer should be examined according to its specific contract.
Could such an arrangement be considered securities?
According to a Bizportal report from 20.2.2022 on an audit report by the Securities Authority, the Authority classified an arrangement for a hotel unit abroad as securities, even when each unit was registered in the buyer's name. The reported reasoning: investors were entitled to a return derived from the entire project's activity, not just from the unit they purchased. The Authority noted that usually, the purchase of a specific apartment registered in the buyer's name is a consumer purchase. The distinction is not determined by the Tabu, so consult a lawyer on how the law applies to the offer before you.
What to check before signing for a hotel vacation unit?
Before signing, check what is being purchased, who pays you the income, and the conditions for exiting the arrangement. The list:
- What is purchased. Property in the Tabu, right of use for a period, or a share in the project.
- Source of income. Is the amount fixed or dependent on the income of the unit or the entire hotel.
- Period and exit. How many years is the contract, what happens at its end, and how to sell the unit.
- Self-use. How many nights are you allowed to stay in the unit, if any.
- Costs. Management fees, maintenance, and arnona (municipal tax), as per the contract only.
- Tourism risks. Seasonality and volatility, as detailed in Returns from a vacation apartment in Eilat.
- Regulation and tax. See Purchase tax on an investment apartment and What to check before buying for short-term rental.
How can Livo help?
Livo does not sell vacation units and does not provide investment advice. On the Income-generating properties in Eilat page, you can leave your details, and a licensed Livo agent will contact you to help locate a suitable property. To see what vacation rentals look like from the guests' perspective, check out Villas in Eilat.
The information on this page is general, based on public publications cited, and is not investment, tax, or legal advice. Livo does not guarantee any returns. Before any transaction, it is recommended to consult with a lawyer and an accountant.
FAQ
What is the difference between purchasing a vacation unit in the Tabu and a right of use?
According to a Walla article from 2009, some hotels sell a 40-year right of use while the unit remains hotel property, and others sell units to private individuals and register them in the Tabu. Check the contract to see exactly what is being purchased. The information is old, so verify with a lawyer.
Is a hotel vacation unit considered securities?
According to an audit report by the Securities Authority published on 20.2.2022, investment agreements for a hotel unit abroad where the investor is entitled to a share of the hotel's profits were defined as securities, even when the unit is registered in their name. An Israeli case should be examined by a lawyer, not based on an article.
Is a guaranteed return on a vacation unit a good sign?
Not by itself. A fixed payment not dependent on income was one of the characteristics in the arrangement that the Authority classified as securities. Check who is paying, from what, and what happens if the operator is stopped.
Does Livo sell vacation units?
No. Livo operates a booking platform. Anyone looking for an income-generating property can leave their details, and a licensed Livo agent will contact them, without any commitment to returns.
עודכן לאחרונה: 29 באוקטובר 2026