Palm Beach hotel in the Gush Katif settlement block in Gaza strip was build in the 1980s and operated until the start of the Palestinian intifada at 2000. When the area became under constant Palestinians mortar and rocket attacks the guest stopped coming and the hotel closed down. Few of it's 144 rooms remain connected to electricity and water and are now a squat for local non religious settlers who have no other place to live in the mostly religious, family oriented settlement block. It's residents are the only one in the Gush Katif settlement block who live without a fence and armed guard.

The hotel will be evacuated as part of Sharon "Gaza disengagement plan". The letter "M" in the sign "Palm Beach Hotel" have already fallen as if the hotel would become the Pal Beach hotel.

Gush Katif is an area of Israeli settlements inside the Gaza strip, 8000 Israeli settlers are surrounded by 1,500,000 Palestinians. The Gush is heavily guarded from all sides by the Israeli army and navy.
Part of story: " Gaza Strip Surfers Facing Evacuation".