East Jerusalem represents the eastern half of the once divided city and became the focus of Palestinian settlement around the Old City of Jerusalem in the period after the Second World War and Israeli independence in 1948. Since East Jerusalem fell under Israeli control in the Six Day War of 1967, a large number of Jewish neighbourhoods have also been settled. East Jerusalem is the location of the first campus of the Hebrew University  on Mt Scopus, Although the university area and the military base near it were always under Israeli control, even prior to 1967. Despite the high level of coexistence, the area remains a point of contention in Arab-Israeli relations, somewhat intensified since the outbreak of hostilities in the last few years.
Between the negotiations at Camp David and Taba, various options were explored to give the Palestinians more of a presence in East Jerusalem, which they claim as their capital. The peripheral villages and neighborhoods to the north and south of the city might have been ceded, although the Palestinians might receive less than full sovereignty over them - "functional autonomy," "administrative control" or "limited sovereignty."
In Taba Israel considered ceding some parts of the core areas as well: some of the "Holy Basin" between the Old City and the Mount of Olives, downtown East Jerusalem, the Sheikh Jarrah Quarter, and in the Old City the Muslim and Christian Quarters. The Temple Mount/Haram issue remained unresolved, with Israel prepared to cede "functional sovereignty" (though not official) to the "upper" area of the mosques, while retaining sole sovereignty over the "lower" Western Wall.
- Kan Zman Jerusalem Hotel, Nablus Road, telephone 6283282. Middle Eastern specialities plus pasta and salads. Main courses start at about ₪30, and there are ₪50 buffets on Thursday and Saturday nights. 7AM-12AM. Not kosher.
- American Colony Hotel, One Louis Vincent St., telephone 6279777. French and Middle Eastern cuisine. Three course meals from $25; summer bar. 12PM–3PM and 7PM-11:45PM. Reservations advised. Not kosher.
- Shababeek Restaurant, 7 Shimon Hatsidik Street (Sheek Jarah), ☎ 02 5322626, . noon-11PM. Lovely old style restaurant serving selected mediterranean food.
- Gossip. Great Palestinian beer, nice atmosphere, and their Gossip Special Argila (shisha) is amazing.
- Jerusalem Hotel, Nablus Road, ☎ +972 2 6283282 ([email protected], fax: +972 2 6283282), . Toll Free Reservation Numbers USA 1-800-657-9401 Norway 800-13115 France 0800/912046 UK 0800/3282393
- Austrian Hospice, Dolorosa and Al Wad, . Gated hostel in the Old City of Jerusalem. Beautiful building and very clean. Café, numerous scenic seating areas, and an amazing view from the roof. $26.
- Ramsis Hostel(Guest House), Haneviim st .20 East Jerusalem ((outside Damascus Gate)), ☎ +972-02-6271651, . checkin: 10:am; checkout: 10:00am. A historical house located on the front line between eastern and western Jerusalem. Owner and manager name: Mike Mushasha A very friendly and experienced man who speaks fluent English, Hebrew, and Romandan. The hostel is very close to many interesting places for tourists, just five minutes walk away. $15. (,$10)
- Mount of Olives Hotel, 53 Mount of Olives Road. Affordable family-run hotel situated at the summit of the Mount of Olives in Jerusalem, next door to the Chapel of Ascension. Surrounded by famous churches and holy sites including, among others, the Garden of Gethsemene, the Tomb of the Virgin Mary, the Church of all Nations, Dominus Flevit, and the Pater Noster. Commands a view of the Old City and the Dome of the Rock., 628-4877, Fax: 626-4427, [email protected], .
- The American Colony Hotel, One Louis Vincent St. (Jerusalem), ☎ +972-2-627-9777, 1-800-265-669 ([email protected]), . Luxury, historic boutique hotel in Jerusalem, located within walking distance of all major sights and within ten minutes of the Damascus Gate in the Old City. Has 86 unique rooms and suites, outdoor pool, spa treatments, breakfast buffet, free internet access and complimentary parking.
- Azzahra Hotel, 13 Azzahra Street (Jerusalem), ☎ +972-2-6282447 ([email protected]), . checkin: 14:00; checkout: 12:00. The Azzahra Hotel opened in 1948 and was the first hotel in East Jerusalem. The family-run Hotel Azzahra is set within a 19th-century building and offers an international restaurant with Italian, French and Asian cuisine. The hotel offers free Wi-Fi and free parking. Rooms have satellite TV and private bathrooms.