Airbnb empire built on 250 apartments faces court-appointed receiver request
Bank seeks to enforce liens on Rafael family short-term rental business amid NIS 5 million debt.
The Rafael family’s Airbnb empire is facing significant financial difficulties. Mizrahi Tefahot Bank filed a request last Wednesday with the Central Lod District Court for an order to enforce a lien and appoint a receiver against Yuval Rafael and Rafael Real Estate and Investment Consulting. According to the petition, the debt to the bank stands at NIS 5 million, and the company is not meeting its loan repayments. Mizrahi Tefahot is seeking to realize three real estate assets that were pledged as collateral.
Rafael Real Estate and Investment Consulting, at its peak, managed approximately 250 short-term rental apartments across Israel and was one of the largest short-term rental operators in the country. The group was established in 2018 and currently owns eight apartments and employs 20 people, while the remaining units were operated through rental, renovation, or joint investment structures with external investors. For operational purposes, dedicated departments were established for marketing, sales, customer service, operations, accounting, interior design, and yield management.
The debt to the bank is primarily attributed to loans taken by Rafael Real Estate Consulting and Investments, which alone owes approximately NIS 4.69 million. The remaining debt is linked to the holding company, another group entity, and a personal debt of founder and former CEO Yuval Rafael. To secure the credit, cross-guarantees were registered among all group companies, and three real estate assets in Eilat were pledged, one owned by the company and two owned by Rafael family members, who agreed to pledge their properties in support of the business credit. Alongside Yuval Rafael, Romi Real Estate Company, owned by Yuval Rafael and holding 70% of luxury properties in the Shachamon neighborhood of Eilat, was also included in the petition.
According to a Calcalist investigation, despite a partial return to normalcy following the Swords of Iron war, Israel’s tourism industry continues to suffer from weak demand. Data from the Central Bureau of Statistics shows that in May 2026, only 64,400 tourists entered Israel, a sharp decline compared to 126,800 in May 2025, a year that was also marked by security uncertainty. The Rafael family’s activity spans both inbound and domestic tourism. According to the petition, the company’s crisis began in October 2023 with the outbreak of the war.
For weeks, there was almost no activity in the tourism sector. The company subsequently contacted the Ministry of Tourism and made its apartments available for housing evacuees from the Gaza Strip. However, according to the company, disputes with the ministry regarding the classification of apartments and accommodation standards led to significantly lower payments than projected, on which the company had based its operations. The gap between expected and actual revenues reportedly led to heavy losses, financial deterioration, and the cessation of business activity.
The bank states in its petition that after the company stopped making loan repayments, discussions were held between the parties, at the end of which it was agreed that the assets would be realized. It also noted that it had already allowed the company to sell one asset independently, a transaction that generated NIS 3.6 million, of which NIS 3.1 million was used to reduce the debt.
A source close to Yuval Rafael said the company’s collapse resulted from prolonged difficulties over the past three years, mainly due to management challenges, rapid expansion, and economic conditions that did not align with the company’s expectations.
The bank is now asking the court to enforce the liens, appoint its representative, attorney Israel Bachar, as permanent receiver, and authorize him to seize the three properties, manage them, and sell them to repay the debt. The request was submitted with the consent of the companies, the controlling shareholder, and family members who pledged assets. The bank said this approach would maximize proceeds from the sale while reducing enforcement costs compared to standard execution proceedings. Mizrahi Tefahot clarified that, at this stage, it is seeking the sale of apartments used for business development, not residential properties owned by the family.
Yuval Rafael did not respond to requests for comment.
Clarification: This is not the real estate company “Rafael Real Estate Group” located in Ramat Gan and owned by David Rafael.
