UN Secretary-General Ban Ki-moon on Monday criticized the demolition of the Shepherd Hotel in east Jerusalem on Sunday, saying it "only serves to heighten tensions."The statement released by the spokesperson of the secretary-general said: "It is deeply regrettable that growing international concern at unilateral expansion of illegal Israeli settlements is not being heeded. Such actions seriously prejudice the possibility of a negotiated solution to the Israeli-Palestinian conflict. The Secretary-General once again calls on the Government of Israel to take whatever steps are necessary to freeze settlement activity anywhere in occupied territory."