Why go
Choose an Old City base if your trip centers on its quarters and sacred sites; small lodgings, hostels and religious hospices have traditionally served that area. West Jerusalem is the more flexible starting point for modern commercial streets and trips beyond the walls. The choice turns on which part of Jerusalem will shape most mornings: the walled historic core or the wider city.
The full story
The Old City and West Jerusalem serve different kinds of stay. Inside the walls, smaller hotels, hostels and religious hospices place you near the quarter streets and major sacred landmarks. That position can be useful when the Old City is your main focus, though you should check the actual property location and access conditions. West Jerusalem has traditionally offered a wider spread of guesthouses, small hotels and larger hotels. It can work better when you plan to divide your time between the historic core, modern commercial streets and other neighborhoods. Do not choose only by a citywide price label: Jerusalem's areas have different purposes, and the journey from a room to a morning visit matters. Decide first which part of the city you expect to visit most often. Then compare current properties, transport connections and the route to your planned sites. An address near a gate and an address within the walled lanes may lead to different daily routines.