The owner of Elmina Hotel in Jaffa was arrested for secretly filming and recording his guests, N12 reported on Thursday evening.
On Thursday, Israel Police issued a seven-day closure order on the hotel as the owner, a 37-year-old Holon resident and father of two, was released to house arrest.
The owner was also barred from conducting all business-related activities for 30 days as the investigation continues.
Allegations of secret recordings were first made when a couple, staying at the hotel, called police after finding a small hidden camera in their room. Upon further inspection, police also found a recording device in the room and proceeded to arrest the owner.
The owner's attorney, Zohar Barzilai, stated he will appeal the closure order issued by police. According to Barzilai, the police are "punishing and causing irreversible damage to my client and his employees."
The owner will also sue police for "damaging the reputation" of his Jaffa hotel, his attorney said.
Israel Police released a statement, calling on all those who visited the hotel and suspect they were being recorded to file a complaint to their local police station.