The "Little House" is a hotel made from a converted Turkish type house in an area of Jerusalem called the Bakah District, hence the name. They provide breakfast, as a buffet, serve yourself, simple but filling. The two room suite we got was simple with no bar or fancy jacuzzi, but comfortable with extremely large rooms and 5 meter high ceilings.
No pool, no views, but it is fairly inexpensive for Jerusalem and puts you within the city without you having to break into any banks beforehand. It is a 5 minute car drive from the old city.