Discount Hotels in Jerusalem:

The Regency Hotel Jerusalem

The Regency hotel Jerusalem used to be the Hyatt. It was the focus a huge zoning battle when it was built in the 1980s: it was originally planned as a sky scrapper, at a time when Jerusalem had none and didn't want any. Eventually, the present, hill-hugging design was approved and the hotel is a landmark.

The view over the Old City is amazing. The trade off for the panoramic view is you aren’t close to anything (except Hebrew University), but in a taxi, you aren’t too far from the center of town.

This is no longer the luxury hotel it once was, but if you don’t expect it to be more than a place to stay, it’s fine: rooms are clean, service is friendly, breakfast is very good, and there’s even a full-service spa, tennis courts and an outdoor pool, which most other similarly priced, discount hotels in Jerusalem do not have.