The hotel will be set inside a historic 19th century heritage building in the revitalised ancient port of Jaffa. W Tel Aviv - Jaffa is being designed by acclaimed British architect John Pawson.
The hotel will have 125 stylish guest rooms and suites, a signature restaurant, bar, spa, pool and business centre.
This project will also feature 38 W-branded residences, which will come with a private entrance, featuring luxurious apartments ranging from 70 to 400m2.
The landmark project is located within close proximity to the newly renovated Jaffa port and the beach, as well as fashionable boutiques, sidewalk cafes and stylish nightlife destinations.
Roeland Vos, President, Starwood Hotels & Resorts, Europe, Africa and Middle East said: "Tel Aviv is one of the most stylish and cosmopolitan cities on the Mediterranean and we are excited to expand our footprint into Israel."