with a student visa, I did not pay any tax
How about regular adult Israeli citizens, who are usually required to pay VAT?
No VAT is charged (at least not at Hilton or SPG). If you redeem using hotels.com credit you will be charged, but that is clearly stated on reservation.
if you have a student visa you're also required to pay VAT, at least I had to when renting a car.
I think you should be able to get that back at the airport if you go to the VAT rebate desk. In hotels, if you show a foreign passport with a tourist or student visa, they usually won't charge you to begin with.