East Jerusalem's VIP choice is this luxurious complex based around a mid-19th-century building. The American Colony Hotel retains much of its historic charm – think mother-of-pearl inlaid furniture and intricate tile work – though rooms sprinkle just the right amount of modernity into the mix. Standard rooms have a classic style (hardwood beds, flowing drapes), while some suites have chandelier windows and four-posters.
Facilities include a pool, well-equipped gym, courtyard cafe, lobby lounge, the Cellar Bar and garden. Even if you don't stay, it's worth stopping by the Courtyard Restaurant for Middle Eastern dishes or a drink at the bar.
Legend has it that when the Ottomans surrendered the city to British rule, the Turkish governor of Jerusalem snatched a sheet from one of the beds (it was a hospital at the time) and used it as a flag to surrender. The ‘flag’ is now in the Imperial War Museum in London.