Hilton Hotels Corporation has announced the development of the first Waldorf Astoria Collection hotel in Israel.

To be known as The Palace Jerusalem, the 220-room property will be developed by IPC Jerusalem.

Around 30 Waldorf Astoria Collection residences are also expected to be developed on the Old City site. It is scheduled to open at the end of 2010.

Hilton currently operates two hotels in Israel – the Hilton Tel Aviv and Hilton Eilat Queen of Sheba.

The Waldorf Astoria Collection currently has five properties – four in the United States, and one in Jeddah, Saudi Arabia.