This venerable hotel has come a long way since it was a two-room guesthouse in 1948. The hotel's 121 rooms have smart navy-and-white beds, cooling tiled floors, safes and fridges. Guests have included King Hussein of Jordan and former US president Jimmy Carter, and the National's faded glamour is beguiling. The staff is exceptionally friendly, and it's a five-minute walk from Herod's Gate.
The on-site restaurant has views towards the Mount of Olives (no alcohol, though), and there's a dinky, brightly lit cafe serving ice cream and cakes.