Deciding on the best area to stay in Jerusalem can be a tricky task. Jerusalem is a fairly large city with lots of different areas, each boasting its own unique charm. Whether you are seeking luxury hotels in the city center or quaint apartments on a quiet street, there are plenty of options to choose from. To help you decide where to stay in Jerusalem we’ve put together a comprehensive list of the best accommodations to suit you and your family’s needs. Take a closer look at these top Jerusalem neighborhoods to decide where to spend your next vacation in the City of Gold.
Best Area for History Buffs – The Old City

The Old City is where visitors will find Jerusalem’s most fascinating historic sites such as the Western Wall, Church of the Sepulchre, and the Dome of the Rock. At just under one square kilometer (0.35 square mile) in size, this area is compact and easy to explore. The Old City is undoubtedly an amazing place to visit and stay in. You will be surrounded by some of the most iconic religious buildings in the world and will experience a blend of all three Abrahamic faiths: Jewish, Islamic, and Christian.
Within the Old City
The Old City is divided into four quarters – the Jewish Quarter, Armenian Quarter, Christian Quarter, and Muslim Quarter. Narrow cobbled pathways lead visitors from one quarter to another. Each sector boasts its own individual character which is centered on its religion, culture, and traditions. When it comes to places to stay, the Old City has fantastic yet limited options.
Tourists will find family-run hostels and guesthouses like the Sephardic House Hotel, where you’ll revel in luxury, enjoy garden views, and an excellent location. The HaShimi Hotel is another great location in the Old City of Jerusalem, offering stunning skyline views, and is mere steps away from all the ancient sites.
Hotels Near the Old City
Luxury hotels in Jerusalem are found all over, especially right outside of the Old City. The award-winning Mamilla Hotel is connected to the Old City via a short pathway and has earned a reputation for some of the best modern architecture in all of Israel. Another great place to stay is the Notre Dame of Jerusalem, located between City Hall and the Old City. Its humble, relaxing, and simple interior serves as a great base for Christians on a pilgrimage of Jerusalem’s holy sites.
Best Area for Location – City Center

Jerusalem’s city center covers popular areas including Zion Square, Ben Yehuda Street, Jaffa Road, King George Street, and King David Street. Here, visitors can expect to find an exciting range of restaurants, cafes, and bars. There are plenty of boutique shops lining the streets, from local to international designers. You will also benefit from West Jerusalem’s buzzing nightlife right on your doorstep.
When it comes to accommodation, you will have an abundance of options to choose from. With historic boutique hotels, as well as contemporary design hotels, the city center certainly is a great place to stay in Jerusalem. The iconic Dan Boutique Hotel has gained global recognition for its trendy style and high-quality service. There are also plenty of places to room and board for backpackers and those on a tight budget, like Harmony Hotel and Stay Inn Hostel.
Don’t forget, there’s a convenient option to store your luggage in Jerusalem if you’re only visiting for a short amount of time.
Find Your Central Jerusalem Hotel
Best Area for a Relaxing Stay – Musrara
Musrara is a quiet neighborhood that formed towards the end of the 19th Century. Each building here looks different, offering a unique historic flair that you won’t find elsewhere. Recently it has seen a rise in the number of artists who have moved in. There are now a number of art schools in the area which host public concerts and exhibitions. There are also local art galleries and plenty of places to eat.
Musrara is a peaceful place to stay, home to small hotels and hostels providing travelers with a quieter range of options. For those wishing to relax and escape the hustle and bustle, staying at the local Brown Villa makes for great accommodation. Post Hostel Jerusalem is another excellent choice, especially for backpackers wishing to relax in a peaceful atmosphere after a long day of sightseeing.
Best Area for Architecture Lovers – The German Colony

The German Colony is a prestigious area located just a short walk from downtown Jerusalem and the Old City. This neighborhood was founded in the mid-19th century by the German Templar Society and is similar to the German Colony in Haifa. These establishments brought with them an influx of newly built mansions and stately homes. Today these mansions are still prominent and are mostly occupied by wealthy renters or property owners. If you have an interest in architecture, staying in the German Colony will certainly impress with its Ottoman, Bauhaus, and Templar buildings.
Emek Refaim
Within the German Colony, you’ll find Emek Refaim Street – a trendy, modern Jerusalem street packed with independent cafes, fashion boutiques, and charming markets. Visitors can stay at the Orient Hotel situated in the center of the neighborhood. Other prime options are Villa Ba’Moshava and Little House in the Colony; located on Emek Refaim Street and Jerusalem’s German Colony, that showcase remarkable amenities and great service.
More to Do in Jerusalem
If you’re looking for ideas for how to spend your days in Jerusalem, our Jerusalem Day Tour covers all the major sites, while our bucket list might give you some more ideas on how to explore the City of Gold. Browse our entire Jerusalem hotels collection to find the perfect fit for you.