A bomb was detonated in the parking lot of King David Hotel in Jerusalem at noon Wednesday, reported Israeli Army Radio.
According to the report, it was a small bomb that caused no injuries.
The police are investigating the incident.
Israeli security forces are on high alert, bracing for Palestinian attacks in revenge for a massacre in Nablus Tuesday.
Israeli missiles killed eight Palestinians, including five senior members of Hamas movement and two children.
In 1946, a bomb planted by the Jewish Irgun terrorist group ripped through the King David Hotel, killing 90 civilians. The group planted the bomb as part of a terror campaign to force British authorities to open the way for a Jewish state in Palestine – Albawaba.com