Israel has very few luxury options, they are discussed here:
http://www.flyertalk.com/forum/luxur...ls-israel.html

In Tel Aviv you can choose two different kind of properties depending on location:
- beach (large hotels and no real luxury here) => Dan Tel Aviv, Carlton, Intercontinental David
- city (boutique hotels with charm but missing large hotels amenities like pool, spa, etc.) => Montefiore, Rotschild
The most exciting one about to open is http://www.thenorman.com