Why is there no Palestine state?

The King David Hotel of Jerusalem is one of the landmark buildings of the contested city.

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Built with locally sourced pink limestone and opened in 1931 by Ezra Mosseri, a wealthy Egyptian Jewish banker, the hotel, overlooking the Old City that is holy for all three Abrahamic faiths, is a standing example of both Israel's Jewish roots and its bloody history. From its early days during the British Mandate of Palestine, the hotel hosted royalties and other key visiting dignitaries. During the Mandatory period, the British used the southern wing of the hotel for its administrative and military offices.