Best Budget Hotels in Jerusalem

Staying in Jerusalem has become quite expensive in recent years. The ancient city of Jerusalem is by far one of the most visited in the world with renowned sites, from the Western Wall to the Church of the Holy Sepulchre. However, hotels in Jerusalem can still be affordable for the average traveler. Beyond the luxury chandelier-filled five-star hotels, there are a number of budget hotels in Jerusalem that don’t compromise on good quality and fine service. If you are traveling in Jerusalem on a budget, here are some of the best budget hotels to ensure you have a comfortable and enriching stay.


Discover comfort at Eyal Hotel, ideally located in the heart of Jerusalem. Just steps away from Ben Yehuda Street and a short stroll from Machane Yehuda Market, this centrally situated hotel offers convenience and accessibility. With 68 affordable rooms, equipped with refrigerators and LCD TVs, you can relax and unwind after exploring the city. Enjoy amenities like a fitness center and terrace, along with complimentary wireless Internet and concierge services. Indulge in a daily complimentary buffet breakfast, and take advantage of many other great amenities at Eyal Hotel.

Shamai 21, Jerusalem


Experience the charm of Montefiore Hotel, located in a tranquil atmosphere in the heart of Jerusalem. The newly renovated rooms feature modern amenities and the affordable space makes it accessible to every kind of traveler. Start your day with a complimentary Israeli breakfast and enjoy discounted dining at the Kosher Angelica Restaurant, renowned for its grill specialties. The 24-hour reception and business facilities make this hotel ideal for traveling professionals. Just steps away, you’ll find King George Street, Ben Yehuda Street, and other central Jerusalem destinations.

Shatz St. No. 7, Jerusalem

Damson Boutique Hotel

Indulge in exceptional yet budget-friendly hospitality at Damson Boutique Hotel. A stay at one of these suites immerses you in the heart of the city, with Machane Yehuda Market and the International Convention Center within easy reach. Explore nearby attractions like the Knesset and Jerusalem Great Synagogue. Enjoy scenic vistas from the comfort of a terrace and unwind in your boutique air-conditioned room after a long day of sightseeing. With well-equipped kitchenettes including stovetops and microwaves, you’ll be able to feel right at home. Enjoy spacious accommodations, great service, and housekeeping available upon request.

Nisim Bachar 32, Jerusalem

Arthur Hotel

Located within the bustling Ben Yehuda district, the Arthur Hotel is a quaint boutique hotel that is steeped in colonial history. The hotel’s design is inspired by the changes that Jerusalem has undergone through the decades and visitors will find an array of vintage photographs scattered around the building, adding to its old-world charm. The rooms offered here are spacious and accommodating, making this a prime and affordable choice. Enjoy laid-back vibes, a daily buffet breakfast as well as a fantastic happy hour of complimentary wine and snacks that shouldn’t be missed.

13 Dorot Rishonim Street, Jerusalem

Brown Machne Yehuda

Discover the vibrant essence of Jerusalem at Brown Machne Yehuda, situated right next to the renowned Machane Yehuda Market that has become an iconic landmark in the city. The hotel boasts 110 beautifully designed rooms – unlike anything you’ve experienced before – catering to both couples and families. Embrace the hotel’s lobby library, spa treatments, free WiFi accessible throughout the hotel, and for those with an adventurous spirit, enjoy the complimentary bike rental service available from the 24/7 front desk, allowing you to explore the city at your own pace. With budget-friendly options, you will get the best value for your dollar here at Brown Machne Yehuda.

Yafo Street 105, Jerusalem

The Post Hostel

The Post Hostel in Jerusalem provides a prime location to major city destinations like Ben Yehuda Street, Jaffa Gate, Church of the Holy Sepulchre, and more. Unwind in one of the 43 air-conditioned guestrooms, offering wonderful amenities. Discover captivating city views from the rooftop terrace and savor a daily buffet breakfast served from 7-10 am. Connect with fellow like-minded travelers during the complimentary reception or when grabbing a quick snack at the bar. Your stay at The Post Hostel awaits you, promising an enriching Jerusalem experience.

23 Jaffa Street, Jerusalem

Heleni Malka Hotel 

Another great budget hotel in Jerusalem is the Heleni Malka Hotel. This accommodation proves that you don’t have to compromise on excellence in order to find an affordable hotel in the vibrant city. Nestled in Jerusalem’s city center, The Heleni Malka Hotel – formerly Olive Heleni Hotel – invites you for an experience of affordable luxury. Guests can unwind at the on-site bar after a day of exploration. The well-appointed rooms feature flat-screen TVs, air conditioning, in-room amenities, and complimentary WiFi. Explore nearby attractions such as the Western Wall and the Church of All Nations.

Heleni Ha-Malka St 15, Jerusalem

More to Explore in Jerusalem

Haven’t found what you’re looking for? Perhaps browse all of our Jerusalem hotels or take one of our affordable day tours to help make your stay as magical as it can possibly be.

Also, many hotels offer to store your luggage before check-in or after check-out. However, if you’d like to store your luggage somewhere else in the city, there are many options to store your bags and suitcases in Jerusalem.

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