Stay away ...
... if you have the slightest difficulty walking or require a minimum of comfort. Allright, the hostel is central near the Sepulchre in a very old cavernous building (expectduring daytime to battle your way a good 10 minutes through masses of tourists from the Jaffa Gate).
That's where the problem starts: narrow staircases. Toilet/shower combinations (way too few) that are second only to those in Hongkongs notorious Chungking Mansions, with no space whatsoever.
The ground floor looks nice enough with a few settees and the only area where WiFi is working with a very weak signal. If you don't break your neck -- or at least an ankle on the way up to the dorm -- the cheap one with 12 beds + 2 mattresses on the floor as needed at 70 Shekel has no wardrobe or storage area. No keys are given adding to a feels of insecurity.
No towels. Laundry is charged at outrageous 50 Shekel (the coin-op laundry down the road @ 20).
The fully equipped kitchen is overcrowded with two people. Staff are, put mildly, indifferent, which becomes understandable once one finds out that they either volunteer for free nights or receive he royal payment of 70 Shekel for a 11 hour shift (~ 1,75 US$/hrs).
Additionally there is the opportunity to sleep in the open on the roof where the mosquitoes have a field day.