The American Colony Hotel

The American Colony began as the mansion of an Ottoman pasha and became a hotel through the Christian utopian community of Swedish and American settlers who gave it its name. For well over a century it has served as Jerusalem's neutral ground—a leafy compound in East Jerusalem where diplomats, journalists, writers and spies have traded stories over arak and mint lemonade. Lawrence of Arabia, Graham Greene and John le Carré all passed through, and the atmosphere of discreet intrigue endures.

The heart of the hotel is the stone courtyard, where a fountain plays beneath lemon trees and breakfast stretches pleasantly into mid-morning. Rooms spread across four historic buildings and range from snug quarters to the grand Pasha Room with its painted ceilings; antiques, Damascene inlay and Armenian tiles keep the sense of place strong throughout.

The vaulted Cellar Bar remains one of the city's most atmospheric drinking dens, and the summer garden restaurant is a local institution. The location sits away from the tourist core—a short drive or a solid walk from the Old City gates—which is precisely why its regulars love it. This is a hotel of character and conversation rather than polish, and it rewards travellers who value both.