Israel demolishes hotel in East Jerusalem

Jerusalem (CNN) -- Israeli bulldozers demolished part of a hotel in East Jerusalem on Sunday, prompting swift condemnation from Palestinians.
Plans to demolish the Shepherd Hotel caused a diplomatic rift between Israel and the United States when Israel announced plans for it during Vice President Joe Biden's trip to Israel in 2009.
Israel demolished part of the hotel as part of a plan to build 20 housing units for Jews in a predominantly Palestinian neighborhood of East Jerusalem.
The chief Palestinian negotiator, Saeb Erakat, denounced the action.
"The state of Israel is demolishing one Palestinian property after another in an effort to cleanse Jerusalem of its Palestinian inhabitants, heritage and history," he said in a statement.
He said such actions "undermine the two-state solution and negotiations process."
The United States had called on Israel to halt the housing project, but Prime Minister Benjamin Netanyahu responded by saying "our sovereignty (over Jerusalem) cannot be challenged". The project was given final approval last March.
The Shepherd Hotel was built in the 1930s by a prominent Palestinian family and was purchased from the state of Israel in 1985 by American millionaire Irvin Moskowitz , an avid supporter of Jewish building in East Jerusalem.

Moskowitz developed plans for the 20 housing units that sparked the hotel's demolition on Sunday.