The incident reportedly began with an argument between the man, who works in the kitchen at the Leonardo Club hotel of Eilat, and another employee. The victims were evacuated to Eilat's Joseftal Medical Center.
When a hotel security guard tried to break up the fight, the man grabbed his gun and started shooting, killing another hotel employee who worked in the kitchen.
Police said that the man subsequently barricaded himself in the kitchen in the Leonardo Club hotel but did not hold anybody hostage.
Israel's Counterterrorism Unit subsequently stormed into the hotel, succeeding in taking control of the situation and arresting the gunman.
