coach outlet stores report,Israeli bulldozers have demolished part of a hotel in East Jerusalem to make way for 20 homes for Jewish settlers.
The destruction of the Shepherd Hotel has angered Palestinians, who want East Jerusalem as the capital of a future Palestinian state.
The Palestinian leadership said Israel was destroying any chance of returning to peace. The US called the demolition a "disturbing development".
Israel says it has a right to build homes in any part of the city.
The Shepherd Hotel was built in the 1930s and was once home to Amin al-Husseini, the Grand Mufti of Jerusalem who became an ally of Adolf Hitler in World War II.
coach shoesIts current ownership is disputed - Israel says it belongs to a Jewish-American property developer but Palestinians say it was seized illegally after Israel occupied East Jerusalem in 1967.