Where to Stay in Jerusalem (2023 • COOLEST Areas!)

Looking for a specific place to stay? These are our highest recommendations for places to stay in Jerusalem.

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Best Hostel in Jerusalem: The Post Hostel

This is our favourite hostel in Jerusalem. Located in the Musrara, it is a stylish and urban hostel that offers a myriad of features. It has an outdoor rooftop terrace, an open lounge area and a well-equipped kitchen. They also offer a tasty breakfast each morning.

Sometimes the best way to experience a destination is from a good dorm room with good people. Book one of these sweet hostels in Jerusalem and get ready for the time of your life!

Best Hotel in Jerusalem: Rafael Residence Boutique

This excellent four-star property is our pick for the best hotel in Jerusalem. Located in German Colony, this property offers spacious apartments with cable/satellite TV, refrigerators and microwaves, as well as private en-suite bathrooms. Guests can enjoy a range of features including free wifi and an airport shuttle.

Best Airbnb in Jerusalem: Cosy Studio in Jerusalem Center

This gorgeous studio is located right in a fantastic location, next to the old city of Jerusalem and the Mahane Yehuda market. Whilst basic, it has everything you need from a fully equipped kitchen, to fast WiFi, clean towels and linens and coffee and tea. This studio is the perfect place for a first time visitor to Jerusalem.

FIRST TIME IN JERUSALEM

FIRST TIME IN JERUSALEM

Downtown Triangle

The Downtown Triangle is a neighbourhood located at the heart of Jerusalem. It makes up the modern core of the city and is home to an exciting range of bars, cafes, restaurants and shops.

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ON A BUDGET

ON A BUDGET

The Old City

Jerusalem’s Old City is a neighbourhood bursting with charm. It is home to the city’s most important historical, cultural and religious sites, and iconic landmarks.

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NIGHTLIFE

NIGHTLIFE

Machane Yehuda

Machane Yehuda Market is one of the liveliest and most vibrant areas of the city. It is quite possibly one of the best-known markets in Israel and is where you’ll find an eclectic mix of coffee shops, cafes, restaurants and bars.

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COOLEST PLACE TO STAY

COOLEST PLACE TO STAY

Musrara

Musrara is a small neighbourhood tucked between the Downtown Triangle and the Old City. It is a fascinating neighbourhood that boasts a rich and tumultuous history dating back to the late-1800s.

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FOR FAMILIES

FOR FAMILIES

German Colony

German Colony is an affluent neighbourhood located in southern Jerusalem. Its is a prestigious neighbourhood with an abundance of restaurants and boutiques as well as hip hangouts and trendy hotspots.

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Jerusalem is one of the oldest cities in the world. It is a fascinating city that seamlessly combines ancient sights and historic relics with twenty-first-century charms. Here you’ll find picturesque old neighbourhoods nestle alongside modern skyscrapers and first-century structures dotted amongst contemporary shops and cafes.

Jerusalem is a huge city. It covers an area of 125 square kilometres and is divided into numerous districts each offering unique character and charm.

This guide will explore the top attractions and activities in the five best neighbourhoods.

The Downtown Triangle is the central commercial and entertainment district in Jerusalem. It is the neighbourhood at the heart of the modern city and is packed with tasty restaurants and charming cafes.

Head west from here and you’ll arrive at Mahane Yehuda Market. This market is one of the liveliest and most vibrant places in the city and staying here means you’ll have access to the best nightlife in Jerusalem.

Travel east across the city to Musrara. A fascinating neighbourhood with a tumultuous history, Musrara is a haven for artists and creative and attracts Jerusalem’s hip and trendy population.

Set south of Musrara is Old City. The most iconic neighbourhood in Jerusalem, Old City is where you’ll find a myriad of ancient and holy sites, including the Western Wall and the Dome of the Rock.

And finally, south of the city centre is the German Colony. This affluent neighbourhood is well-connected and is home to a vast array of restaurants and cafes, bars and boutiques.

Still not sure where to stay in Jerusalem? Don’t worry, we’ve got you covered!

Now, let’s take a look at the five best neighbourhoods to stay in Jerusalem. Each is a little different from the last, so be sure to read each section carefully and pick the neighbourhood that the right fit for your travel needs.

#1 Downtown Triangle – Where to Stay in Jerusalem First Time

The Downtown Triangle is a neighbourhood located at the heart of Jerusalem. It makes up the modern core of the city and is home to an exciting range of bars, cafes, restaurants and shops.

It’s also one of the best-connected neighbourhoods in Jerusalem. Nestled between Mahane Yehuda Market, trendy Musrara and the historic Old City, the Downtown Triangle makes it easy to travel throughout Jerusalem and enjoy the city’s many sights and sounds. That’s why the Downtown Triangle is our pick for where to stay if you’re visiting Jerusalem for the first time.

Love to shop? Well, look no further! The Downtown Triangle is also home to a fantastic selection of shops and boutiques selling clothes and homewares from local and international designers.

Things to See and Do in the Downtown Triangle

1. Dine on local cuisine at Menza.
2. Grab a snack at Muffin Boutique
3. Listen to great music at Toy Bar.
4. Sample high-class cocktails at Gatsby.
5. See ancient instruments at the Hebrew Music Museum.
6. Shop until you drop at Hamashbir Lazarchan.
7. Stand at the centre of Jerusalem in Zion Square.
8. Take in panoramic views of the city at Rooftop.
9. Try one of the best coffees in Jerusalem at Hamakom
10. View a collection of objects related to Jewish life in Italy at the U. Nahon Museum of Italian Jewish Art.
11. Visit Kadosh, a family run restaurant open since 1967.

Best Hostel in the Downtown Triangle: Cinema Hostel

Set in a historic cinema, this is one of the coolest hostels in the city. It provides a unique setting at the heart of Jerusalem. Guests can enjoy themed rooms with comfortable beds and nightlights. A tasty breakfast is also included with each reservation.

Best Hotel in the Downtown Triangle: Hillel 11

This charming hotel offers comfortable accommodations at the heart of Jerusalem. It is ideally located for sightseeing and shopping, and there are plenty of restaurants and cafes nearby. It boasts a lovely terrace with beautiful panoramic views. They also provide luggage storage, child-minding services and airport transfers.

Best Hotel in the Downtown Triangle: Eyal Hotel by Smart Hotels

This excellent three-star hotel is our pick for where to stay in the Downtown Triangle. It offers easy access to Jerusalem’s top attractions and landmarks and is close to shopping, dining and nightlife options. Each room comes complete with air conditioning, cable/satellite channels and a spa bathtub. There’s also a delicious restaurant on-site that offers kosher meals.

Best Airbnb in Downtown Triangle: Cosy Studio in Jerusalem Center

This gorgeous studio is located right in a fantastic location, next to the old city of Jerusalem and the Mahane Yehuda market. Whilst basic, it has everything you need from a fully equipped kitchen, to fast WiFi, clean towels and linens and coffee and tea. This studio is the perfect place for a first time visitor to Jerusalem.

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#2 The Old City – Where to Stay in Jerusalem on a Budget

Jerusalem’s Old City is a neighbourhood bursting with charm. It is home to the city’s most important historical, cultural and religious sites, and iconic landmarks. A labyrinth of winding streets and meandering alleyways, the Old City is full of hidden gems and incredible attractions just waiting to be discovered.

This iconic neighbourhood is also where you’ll find a good selection of budget accommodation options. Dotted throughout the Old City are a handful of charming hostels and good value hotels that allow travellers to soak up the atmosphere of ancient Jerusalem without breaking the bank.

Things to See and Do in The Old City

1. Climb the cobblestone streets to Temple Mount.
2. Drink a coffee at the Austrian Hospice.
3. Eat shawarma at Al Nasser.
4. Explore an impressive collection of antiquities at the Rockefeller Archaeological Museum.
5. Indulge in knafeh, a traditional Arab desert made of fine sugary dough.
6. Learn the history of Jerusalem at the Tower of David Museum of the History of Jerusalem.
7. Marvel at the Church of the Holy Sepulchre.
8. Pass through Jaffa Gate, one of the seven gates that lead into the Old City.
9. See the Dome of the Rock.
10. View the Al Aqsa Mosque.
11. Visit the sacred Western Wall.

Best Hostel in The Old City: Jaffa Gate Hostel

This hostel is ideally located in Jerusalem. It is situated in the Old Town and is just minutes from top tourist attractions. It is also well connected to the shops, restaurants and bars of downtown. This hostel has a friendly and welcoming atmosphere, comfortable rooms and free wifi. They also offer free guided tours of the city.

Best Hotel in The Old City: Hashimi Hotel

The Hashimi Hotel is our number one choice for where to stay in the Old City. This four-star hotel is conveniently located near the Western Wall and Temple Mount. It is a short walk to shopping, dining and nightlife options. This hotel has comfortable rooms, a rooftop terrace and a delicious in-house restaurant.

Best Airbnb in The Old City: Charming Room in a Shared House

The house was once the Church of God and offers a view of the Western Wall and the Golden Dome, making your stay rather unique. If you’re on budget, this is a good budget option. Your private room includes a double bed and you will share the house with the guest, Elish, and her friendly housemates.

Best Hotel in The Old City: Victoria Hotel Jerusalem

Thanks to its excellent location, this is one of our favourite hotels in the Old City. It offers 49 rooms with air conditioning and modern comforts, including private bathrooms and contemporary amenities. There’s also laundry facilities, a shuttle service, and a great in-house restaurant.

#3 Machane Yehuda – Best Area to stay in Jerusalem for Nightlife

Machane Yehuda Market is one of the liveliest and most vibrant areas of the city. It is quite possibly one of the best-known markets in Israel and is where you’ll find an eclectic mix of coffee shops,  cafes, restaurants and bars.

By day, Machane Yehuda is your stereotypical shuk market. It attracts tourists and locals who browse its colourful fresh produce, shop for sweet and tasty treats, and socialize with shopkeepers.

But come nightfall, Machane Yehuda transforms into one of the rowdiest parts of Jerusalem. The market is home to home to a great selection of awesome bars and tasty street food stalls. That’s why this is our pick for where to stay in Jerusalem for nightlife.

Things to See and Do in Machane Yehuda

1. Browse the shops and stalls of Machane Yehuda Market.
2. Choose from a wide range of local and Israeli brews at the Beer Bazaar.
3. Dance the night away at Oliver Twist.
4. Dine on exquisite Mediterranean fare at Machneyuda.
5. Enjoy happy hour at Freddy Lemmon.
6. Excite your sense with a fresh, quick and delicious meal at Pasta Basta.
7. Grab a few pints at Casino de Paris.
8. Indulge your sweet tooth at Mousseline Ice Cream.
9. Listen to great music at Tahrir Bar.
10. Sample tasty Georgian dishes at Khachapuri.
11. Sip urbane cocktails and snack on good food at HaShchena.

Best Hostel in Machane Yehuda: Abraham Hostel Jerusalem

Voted one of the top hostels in Jerusalem, this is a fantastic place to stay if you’re keen to explore the city without breaking the bank. It is located in the city centre and offers a comfortable and social atmosphere. You’ll enjoy free wifi, free breakfast and clean and cosy beds.

Best Hotel in Machane Yehuda: Prima Palace Hotel

The Prima Palace Hotel is a stunning four-star hotel in the city centre. It is within walking distance of Machane Yehuda Market and is ideally located for drinking, eating, shopping and sightseeing. It provides clean and spacious rooms with modern amenities. This is our pick for where to stay in Machane Yehuda.

Best Apartments in Machane Yehuda: Avital Hotel

This charming two-star property is conveniently located in Jerusalem. It is close to Mahane Yehuda Market and is within walking distance of downtown and the Old City. This property boasts nine recently refurbished apartments that are outfitted with kitchenettes, TVs and private bathrooms. There’s also a social in-house bar.

Best Airbnb in Machane Yehuda: Authentic Suite Close to Amazing Nightlife

Located in the heart of Jerusalem and only 15 minutes walk away from the Old City, this small and cozy private apartment is an ideal pick for someone who wants to visit the sights of Jerusalem during the day and go out in the vibrant Machane Yehuda at night. It includes wifi, a kitchen, a TV, and can accommodate up to four guests.

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#4 Musrara – Coolest Place to Stay in Jerusalem

Musrara is a small neighbourhood tucked between the Downtown Triangle and the Old City. It is a fascinating neighbourhood that boasts a rich and tumultuous history dating back to the late-1800s.

Today, Musrara is a trendy and picturesque neighbourhood home to artists and art galleries. It attracts creative souls thanks to the art exhibitions, urban art guided tours, workshops and cultural events that take place in the area. If you’re someone who likes to be surrounded by beautiful things, Musrara is for you! That’s why this neighbourhood wins our vote for the coolest neighbourhood in Jerusalem.

Things to See and Do in Musrara

1. Dive deep into the history of the establishment of the state of Israel at the Museum of Underground Prisoners.
2. Experience artwork from around the world at the annual Musrara Mix Festival, which takes place in May.
3. Explore the neighbourhood by joining a Free Saturday tour.
4. Marvel at the architecture and design of the Chapel of Our Lady of Jerusalem.
5. See an incredible collection of socio-political contemporary art at the Museum on the Seam.
6. View the works of the graduates of the Naggar School of Photography.
7. Visit Muslala, a unique gathering space that combines urban nature, creative workshops, art, performances and farming under one roof.

Best Hostel in Musrara: The Post Hostel

This is our favourite hostel in Jerusalem and our recommendation for where to stay in Musrara. It is a stylish and urban hostel that offers a myriad of features. It has a rooftop terrace, an open lounge area and a well-equipped kitchen. Breakfast is also included with each reservation.

Best Hotel in Musrara: Legacy Hotel Jerusalem

The Legacy Hotel Jerusalem is a fantastic four-star hotel. It is ideally located in Musrara and is close to top tourist attractions and historic landmarks. This hotel offers a vast array of features, like free wifi, a rooftop terrace and a relaxing Jacuzzi. There’s also outdoor tennis courts, a swimming pool and a sauna on-site.

Best Hotel in Musrara: Jerusalem Hotel

Thanks to its great location, this hotel makes an excellent base for your time in Jerusalem. It is close to restaurants and shopping, as well as sightseeing, arts and culture. This hotel boasts 14 recently refurbished rooms with air conditioning and flat-screen TVs. There’s also a restaurant and lounge, perfect for unwinding after a long day on the town.

Best Airbnb in Musrara: Sublime Apartment in Musrara

Enjoy your stay in this recently renovated apartment located just a walk away from the best views in Jerusalem. Very clean and perfectly designed, it’s a very cool place to stay in Jerusalem during your visit. It has a TV, a kitchen, an indoor fireplace and even a laundry, a balcony and even a drying machine.

#5 German Colony – Best Neighbourhood in Jerusalem for Families

German Colony is an affluent neighbourhood located in southern Jerusalem. Its is a prestigious neighbourhood with an abundance of restaurants and boutiques as well as hip hangouts and trendy hotspots. The German Colony is well-connected to the Downtown Triangle as well as the Old City, which is why it is our pick for where to stay in Jerusalem for families.

The German Colony neighbourhood is also well-known for its eclectic mix of architectural styles. With Ottoman, Bauhaus and Templar-style mansions and buildings lining the streets, architecture and design aficionados won’t want to miss the chance to explore this charming borough.

Things to See and Do in German Colony

1. Browse a large collection of stuffed animals and enjoy a variety of nature-related activities at the Museum of Natural History Jerusalem.
2. Catch a performance at the Jerusalem Theatre.
3. Dine on fresh and delicious Japanese fare at Sushi Rehavia.
4. Explore the massive complex and sculpture gardens at the Israel Museum.
5. Kickstart your day with a tasty and satisfying meal at the Waffle Factory.
6. Satisfy your sweet tooth at the Marzipan Bakery.
7. See more than 140 species of animals from around the world at the Tisch Family Zoological Gardens.
8. Sip cappuccinos at The Coffee Mill.
9. Visit the Tower of David to take in the epic Night Spectacular light and sound show.

Best Budget Hotel in German Colony: Cozy Garden

The Cozy Garden is our pick for the best budget accommodations in the German Colony. This property is composed of three well-appointed rooms that are outfitted with amenities and features. You’ll enjoy comfortable beds and a relaxing lounge, and there are plenty of shops, restaurants and cafes nearby.

Best Hotel in German Colony: The Colony Hotel Jerusalem

Located in the German Colony neighbourhood, this three-star hotel is an excellent base for exploring the city. It is well-positioned near tourist attractions, shops and restaurants, and is in close proximity to the Israel Museum. Rooms come complete with air-conditioning and wireless internet and are large enough to accommodate families.

Best Apartments in German Colony: Rafael Residence Boutique

This excellent four-star property is our top pick for where to stay in the German Colony. It offers spacious apartments with cable/satellite TV, refrigerators and microwaves, as well as private en-suite bathrooms. Guests can enjoy a range of features including free wifi and an airport shuttle.

Here’s what people usually ask us about the areas of Jerusalem and where to stay.

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Jerusalem is a fabulous city bursting with history, culture and religion. It is much safer than it once was (but not as safe as Tel Aviv) and offers an abundance of attractions and activities that will excite, enchant and enthral travellers of all ages and styles. From sacred sites to world-class shopping, whatever you fancy you’ll find it in Jerusalem.

In this guide, we’ve looked at the five best neighbourhoods to stay in Jerusalem. If you’re still not sure which is right for you, here is a quick recap of our favourite places.

The Post Hostel in trendy Musrara is our pick for the best budget accommodations in the city. It offers a vast array of amenities and features and guests can enjoy a free breakfast with each reservation.

Our recommendation for the best hotel is the Rafael Residence Boutique in the German Colony thanks to its great location, spacious apartments and fantastic modern features.

If you’re travelling around Israel, check out our Where to Stay in Israel guide!

Do you own an awesome hostel, hotel or apartment? Want to be featured in our list? Email [email protected] to find out how.

And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!