Israel TV said Zeevi was killed with a silencer-equipped weapon.

The hotel is at the edge of Mount Scopus, a pocket of Israeli territory inside traditionally Arab east Jerusalem. Zeevi always stayed at the hotel while parliament was in session to underline Israel"s claim to all of the disputed city. The Palestinians claim the Arab section of Jerusalem as their capital.

Zeevi had been the target of many verbal threats, and as a Cabinet minister was entitled to a bodyguard. However, he rejected protection as a matter of principle, fellow ministers said.

In Israel, Zeevi, a veteran of Israel"s wars in 1948, 1956 and 1967, was respected by some for his distinguished military record. But his political views were condemned by others as racist.

He sparked controversy in July by comparing Palestinians working and living illegally in Israel to "lice" and a "cancer."

Zeevi was first elected to parliament in 1988 as head of a fringe party called Moledet (Homeland), which advocated a formula called "transfer," or removal of Palestinians from the West Bank and Gaza.