We had a wonderful time staying at Dar Sitti Aziza (House of My Grandmother Aziza) in Bethlehem for two nights. The inn, a heritage hotel in the style of an Ottoman-era merchant's home on the West Bank, has been renovated with modern amenities. The location is a stone's throw from the Church of the Nativity. When the weather is nice, breakfast is served on the patio under a pistachio tree. What made our stay extra-special was the hospitality of the manager, Nabil Rishmawi, the grandson of the namesake Aziza.
Dar Sitti Aziza, Anatra Street, Bethlehem; 011-972 2 2744848, http://www.darsittiaziza.com