Jerusalem: Bulldozers have demolished a hotel in disputed east Jerusalem to make way for a new Israeli enclave, drawing Palestinian condemnation.
The Shepherd Hotel was razed early Sunday and is to be replaced by 20 apartments for Israelis.
The project in the Arab east Jerusalem neighbourhood of Sheikh Jarrah has drawn US criticism.
Palestinian negotiator Saeb Erekat said Palestinians would not negotiate with Israel as long as such moves continued.
Peace talks are currently stuck. The Palestinians refuse to negotiate without an Israeli settlement freeze that includes east Jerusalem, which the Palestinians claim as their future capital.
The Shepherd Hotel project is funded by Jewish American millionaire Irving Moskowitz, a longtime patron of Jewish settlers.