Palatin Hotel Jerusalem

This family-owned boutique hotel is at a prime location in Jerusalem - literally down the street from the open market and Ben Yehuda; also, for those without heavy luggage, an easy walk from the central bus station and to the old city.
There is a small, two-person balcony off the lobby decorated with flowers which overlooks a fun sitting spot; local raggae-type bands and street cats fill the spot.
The staff is quiet and very helpful. My roommate and I brought a bottle of wine, which the hotel staff kept cold in their personal fridge for us. The nice lady at the front desk also supplied a bottle opener and two wine glasses without charge! When we needed help in the room, the maintenance man walked up with us and fixed the problem, then asked if we would like something to drink! How often do you find a place like this?

The hotel is relatively small, and serves a small breakfast (included), and also has free wi-fi for guests.

The one complaint is that there was quite a bit of noise early in the morning (around 6 or 7 am), and the windows do not shield you from any of it. For those who sleep heavy or want an early wake up call, this is great.
Also, no elevator, so travel light!

Walk up the street to the market for falafel, or to a nearby bakery for goodies. Lots of bookstores in the building connected to the hotel.