The hostel is unbeatably located in the very heart of the Old City of Jerusalem, and the staff is really friendly and helpful. But I guess that's it when it comes to the positives. Besides, it's got a specific feel to it which I personally disliked. It is meant to look like the ancient city all around, but that involves also lack of daylight in the room, which by the way was cramped, and far from crystal clean. People sleeping in the corridors didn't add to my contentness either, as that would be even difficult to go to the loo (also not very attractive) not waking somebody up.
All in all, staying there was interesting, but I find the quality of the hostel dubious. Not that I would expect any luxury, and not that it was dramatic, but apparently, I had been lucky enough to stay in numerous better hostels before. So, it's a good choise for those travelling on a budget and wishing to stay in a short walking distance from the Western Wall, not for those who can't handle some mould in the bathroom though.
PS The cafe around the corner does really nice breakfasts including terrific arabic coffee for as little as 20 shekels -- worth a try!More