The five-star Palace Hotel and Residences, now rising behind a preserved ornate arabesque facade close to the Old City of Jerusalem, is set to be the last word in luxury - but also to meet the most demanding religious requirements of ultra-Orthodox Jews. So, for example, there will be no mixed swimming there and instead it will boast two pools - one for men and one for women. And apart from meticulous observance of kashrut and the Sabbath, the Palace's main attraction for its target clientele will be its proximity to Judaism's most holy site, the Western Wall of the Temple Mount.