A cool hostel in a great location, just at Ben-Gurion Avenu in the Downtown area. The hostel is located in one of the old German colony buildings. Because it is located in an old building it gives more of a feeling of a home away from home. You don't feel like in a hostel in the kitchen or in the communal areas but more like you are being hosted at someone's home.
A small simpler hostel than Al Yakhour located not far from it. The indoor communal areas are a bit tiny, the kitchen is small, but the rooms and the showers are great.
If you feel like being up on the ridge, this is the cheapest place to be. If you are traveling in a group of 4 people taking a room here can be cheap almost as a hostel with the benefits of a hotel.