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The cluster of hotels here, some Israeli run, some Palestinian, are within yards of each other. They are on the old "seam" (as it's sometimes called) that once divided Jerusalem into East and West. At some levels, the old divisions remain, but the seam area itself has become a comfortable middle ground.
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.
This huge hotel offers a large, airy lobby with limestone walls and marble arches, and comfortable guest rooms with soft decor and bright bathrooms, although staff can be unresponsive. The suites are impressively large. Complimentary parking is a nice perk.
A huge circular skylight in the middle of the lobby gives this hotel a sense of light and space. Rooms have parquet floors, sophisticated color schemes, and beds covered with crisp linens. "Superior" is the house term for standard rooms; the better "deluxe" rooms are on the 8th floor and have private balconies. This place is favored by local families and large tour groups.
Five minutes from the Old City, this historic hotel puts you in close proximity to Jerusalem's great sights. Back in the 1950s, this was the favorite Jerusalem hangout for Jordan's King Hussein. Rooms are small but decorated with wood furnishings, and family rooms sleep up to four. The well-equipped gym, ground-floor coffee shop, and the al-Watani rooftop restaurant are nice bonuses.
