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This tranquil, atmospheric enclave, a 5-minute walk from Jaffa Gate, is hidden behind a lovely walled garden and features terraces that overlook the Dome of the Rock and the rooftops of the Old City’s bazaars. So yes, it’s in a splendid location (made even better by being off a quiet street). Who cares that many of the rooms are closet-size (some are larger; ask to move if you’re unhappy), are decorated with mass-produced motel furniture, and have tiny bathrooms with showers only? This still counts as one of the best bargains in the city. An unusually generous breakfast is served in a lovely, stone-walled dining hall and included in the nightly rate. Visitors of all backgrounds are welcome, so don’t worry if you’re not Lutheran, or even Christian. Two quirks you should know about: The guesthouse, unlike most in the city, quotes its prices in euros. And Saint Mark’s lies up an obscure staircase street off the David Street bazaar, so phone for directions before arrival. If you’re traveling with a lot of luggage, it may be wise to arrange for a baggage porter to meet you at Jaffa Gate. Payments are accepted in cash only.