Discerning differences is not visible in the lobby; it lies within the system behind it.
By Motti Verses
As heavy airstrikes struck multiple targets across the Iranian capital, Tehran, the city’s hotels have assumed an unexpected role, transforming into temporary civilian shelters. Unlike several Gulf cities where hospitality properties have suffered damage during the regional escalation, no hotels in Tehran have so far been reported hit despite the extensive bombardment.
According to reports in Iranian media, around 1,100 residents whose homes were damaged have been accommodated in approximately 13 hotels across the city. Among them is the Laleh International Hotel, where roughly 150 rooms have been allocated and more than 300 people are currently staying on a temporary basis. Additional hotels belonging to the Parsian International Hotels group, have also opened rooms for families displaced by the strikes. In a city under bombardment, Tehran’s hotels have so far avoided physical damage, yet many have quietly shifted from welcoming travelers to sheltering residents whose homes no longer stand.

The Laleh itself carries historical significance. During the era of ruler Mohammad Reza Pahlavi, it was one of Tehran’s most prestigious hotels, welcoming Western diplomats, international business figures and official guests at a time when the city stood prominently on the Middle East’s tourism and business map. For the local hospitality industry, the current use of hotels as emergency accommodation is unusual, though limited in scale. Estimates suggest that Tehran’s hotel sector offers roughly 8,000 to 12,000 rooms in total, meaning that only a small fraction of the city’s hospitality capacity is currently hosting displaced residents.
The gap also reflects Iran’s local evacuation model. Unlike Israel, where more than 120,000 evacuees were accommodated in hundreds of hotels following the Hamas attack on Israel on October 7, 2023, Tehran has not seen the large-scale evacuation of entire districts. Many affected residents stay at home or first seek temporary solutions with relatives or in public facilities before turning to hotels.
This reality offers a rare glimpse into Tehran’s hotel industry. Behind the imposing facades and marble-lined lobbies of properties such as Espinas Palace Hotel and Parsian Azadi Hotel,operates a management structure quite different from what hotel executives in Dubai, London or New York would recognize. On the surface, these are fully fledged five-star hotels: spacious suites, refined restaurants, multilingual staff and sweeping views of the Alborz Mountains. Yet behind the scenes, lies a system deeply shaped by Iranian regulation and geopolitical realities.

Unlike the hotel landscapes of the Gulf emirates, Tehran today hosts no Western hotel brands. Prior to the 1979 Islamic Revolution, several leading international chains operated in the city as Iran opened to global tourism and business. Properties such as Hilton, Hyatt and InterContinental – today’s Laleh – were built to international luxury standards and managed by Western companies. After the revolution, the hotels were nationalized, foreign operators withdrew, and the properties were renamed and transferred to Iranian hotel groups.

Since then, many of these hotels have operated under ownership structures that are sometimes private and sometimes semi-governmental. They lack the backing of global loyalty programs, international marketing systems or standardized operational frameworks. Hotel managers often have to build their service standards largely on their own, train local staff internally and maintain quality levels even when market conditions remain unstable.
There were, however, a few exceptional years. Near Imam Khomeini International Airport, hotels operated by the French hospitality group Accor – including Ibis and Novotel – opened after the 2015 nuclear agreement. Airport hotels may lack the glamour of city landmarks, but for investors and international chains they represent a reliable anchor: predictable cash flow, relatively low risk and a stable operating model. Three years later, with the return of U.S. sanctions, Accor ended its direct involvement in the country and management was transferred to a local operator.
Under local ownership, operations are fully subject to Iranian law. Alcohol is prohibited; guest registration is conducted through government systems and financial transactions are constrained by sanctions. Management takes place within a tightly controlled regulatory environment.
Every foreign guest is registered in official databases, passports are scanned and information is transferred to authorities. Hosting delegations or senior business figures may require additional coordination. In an environment of regional tension, running a hotel means dealing not only with rooms and restaurants, but also with emergency procedures, security coordination and careful control of external communications. Even the ability to respond quickly to media events or leverage publicity opportunities is not always fully within the hotel management’s autonomy.

Social and cultural rules add further layers unfamiliar in the West:
- a complete ban on alcohol
- strict modest dress codes in public spaces
- and for local guests, verification of marital status in certain circumstances.
A hotel general manager in Tehran is not only a host, but also an enforcer of regulatory requirements. Operational flexibility is limited.

The economic challenges are no less complex. In the absence of regular international payment systems and under the shadow of ongoing sanctions, financial operations become intricate. Procuring equipment, maintaining high-end facilities and managing cash flow in a volatile currency environment require constant creativity and risk management. Global procurement systems and stable supply chains, common in major international hotel groups, are largely absent.
Yet for the guest, the experience can still feel polished and impressive. Staff are courteous, public spaces expansive and service often warm and personal. The difference is not visible in the lobby; it lies within the system behind it.
For hospitality professionals, Tehran represents a unique model of luxury hotel management under constraints:
-a combination of professional hospitality expertise
– political awareness
-and the ability to navigate a tightly regulated environment.
In some ways, the city resembles Russia or Cuba, where luxury hospitality continues to operate under sanctions and heavy state oversight, relying on flexible local management and the ability to maneuver within a restricted financial and political framework.
For cities like Moscow, St. Petersburg or Havana, there remains a long-term ambition to reconnect more fully with global tourism flows. For Tehran, the trajectory appears less certain. The displaced residents currently staying in the capital’s hotels are, in a sense, the privileged ones who secured temporary shelter. Whether foreign guests will one day return to these properties in significant numbers again is a question that the outcome of the current conflict may ultimately answer.
About the writer:

The author is a seasoned hotel expert, traveler, writer, and videographer, and formerly served as Head of Public Relations for Hilton Hotels & Resorts in Israel. Today, as a travel writer and hospitality trends analyst, his insights and experiences are regularly featured in leading Israeli media outlets.
While the mission of Lay of the Land (LotL) is to provide a wide and diverse perspective of affairs in Israel, the Middle East and the Jewish world, the opinions, beliefs and viewpoints expressed by its various writers are not necessarily ones of the owners and management of LOTL but of the writers themselves. LotL endeavours to the best of its ability to credit the use of all known photographs to the photographer and/or owner of such photographs (0&EO).















































