We selected this hotel because we wanted to stay in the Arab section of Jerusalem. The hotel is old, decor is definitely early Salvation Army. But the staff is friendly and helpful and everything is very clean. Hotel is in a residential area, no restaurants or shops within 10 or 15 min walk, so not the most convenient location. Free coffee, tea and fruit available in the lobby, generous breakfast. And the price is right!

Based on TripAdvisor recommendations my wife and I stayed at Alcazar for 4 nights. Here's what you need to know:

1. It's a great price for Jerusalem. At least $20 lower than comparable hotels.
2. It is a little run down, but it is clean and totally adequate where it counts. For a young couple on a budget, it was perfect. We didn't spend much time in our room, but were happy and comfortable while we were there. Rooms are small-ish. Adequate storage space. Bed was comfortable. Bathroom was dated, but everything worked. Other rooms have upgraded bathrooms.
3. The staff are all very helpful and kind.
4. The location is good in the sense that it's quite close to the old city with easy access to other sites by car. The neighborhood can look a little rugged if you're not used to East Jerusalem. We felt perfectly safe at all hours. Being a pedestrian is a little scary in that area (narrow crowded streets) but that's just the nature of the city.
5. Internet in the lobby (although it was not working one of the days we were there).
6. The breakfast is decent. They also will serve soup in the evening sometimes.
7. Bring earplugs. The call to prayer can be heard from several close mosques starting at about 4:30 A.M.

We would stay there again without hesitation and have recommended it to friends who agreed that it's a great value.

We've stayed here a couple of times, once in 2009 and once in 2010. The service was excellent, the staff polite, price was good, breakfast was very good! It's a bit of a walk from the Old City but a good way to keep you fit (I believe there are also busses...)! Rooms are a bit tired, could do with some refurbishing, but for the price... no complaints!

My wife and I WOULD stay here again if we returned to Jerusalem. We also WOULD recommend Alcazar Hotel to others. Old, out of date and held together with bailing wire and tape, to be sure; BUT the incuded breakfast, internet access, delightful service and so on easily override all the negatives. I could not find any hotel anywhere in Jerusalem that competed on the price.

If you're driving yourself, be warned that the area has essentially NO street signs and the hotel has NO sign out front! But EVERYBODY we encountered was friendly and helpful, even when we just stopped the car and hollered at folks on the street for help! Rent a GPS with your rental car!!!