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With a fabulous, impossible-to-miss location just steps inside Jaffa Gate, the New Imperial was the last word in luxury when it opened in the 1880s: The ground floor courtyard was once an elegant, gated private bazaar for fastidious 19th-century guests. By today’s standards, guest rooms are very simple and creaky, but this is an interesting bottom budget choice for those who don’t want a hostel or the constraints of a Christian guesthouse. It’s true that some of the rooms are so tiny that you may have trouble fully opening your luggage if you place it next to the bed. But others are roomier, and some even feature atmospheric, rough stone walls. Other pluses include friendly management, headed by Mr. Walid Dajani, and dynamite views from the roof. A/C, TV, and fridge are available in some rooms, and extras like hair dryers can be ordered. Rooms at the back avoid the noise of the Jaffa Gate area.