Bethlehem

Grand Hotel
₪190 for a single, but if you look like a budget traveler, they might give it to you for ₪150
If you take local bus 21 (and maybe 124), the bus will drop you off on a hill. If you hike up and keep going straight, the hotel will be on your left. It's got what's probably an upscale Mexican restaurant on top, called Mariachi, but is also situated above a falafel stand