Ambassador Hotel
One of East Jerusalem's longtime favorites, the Ambassador has been tastefully renovated with loads of Jerusalem stone. Rooms are airy and well appointed; for extra space, upgrade to a junior guest room with an Old City view. In fine weather, the Al-Diwan restaurant—Middle Eastern and Italian fare, mostly—expands to the patio where there is a summer bar in the inviting garden. It's a 15-minute walk from Salah-A-Din Street in downtown East Jerusalem.