Petra Hostel is situated in an old house with big rooms just inside Jaffa Gate. As the house is old it is run down, but sheets and bathroom are clean. Unfortunately eating and smoking guests are not always keeping tables, sofas and kitchen clean.
I stayed in a dorm for 35 shekels. In the room there were four bunk beds (8 people) and a bathroom to share. And the room had a balcony to the square, which was nice. In the reception area there is a TV where you can watch the news or see a movie. There is also a small kitchen and one computer. To use the computer one hour is 10 shekels (15 minutes is 3 shekels).
From the roof you can see the Dome of the Rock.
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Theme: Hostel
Comparison: least expensive
Prices: less than US$20
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Phone: 628 6618
Address: Omar ibn al-Khattab Square
Directions: In Old City, just inside Jaffa Gate