Jerusalem offers some pretty cheap accommodations, especially in the Old City.
This hostel is located in the centre of Jerusalem. It has 72 guest rooms and each of the rooms has an en-suite bathrooms and a free wi-fi. All guests receive free breakfast and a walking tour through the Old city for free. The Hostel offers dorms and private rooms. It is 10 minutes away from the Central Bus station.
Gaia Garden Guesthouse
This guesthouse is located between Jerusalem's four most classical neighbourhoods. It is really close to the theatre, the Islamic Museum and other attractions. It is 30 minutes away from the old city. It offers beds in an eight-bed mixed dormitory. It also offers amazing garden studios with a bathroom, kitchen and their own veranda. The guesthouse offers continental breakfast, satellite Tv, free wi-fi and other services.
Golden Gate Inn
This inn is very close to Damascus gate and it is about 8 minutes away from Jaffa gate. It offers single, double, triple and dormitory rooms. All rooms have shower ensuite. The private rooms also have air conditioning and TV. It offers free tea and coffee, free breakfast, free wi-fi and other services. The building is a 1000-year-old one. It is located in the heart of the old city minutes away from many of the main attractions.