Closer to the tourist centre, a 223-room Waldorf Astoria Jerusalem is set to open in 2013 near the Jaffa Gate.

BBC: Hip Jerusalem and historic Tel Aviv

If you walked to the King David Hotel today from the Old City, and exited through the Jaffa Gate, you certainly took note of the gentrified neighborhood of Mamila.

CENTERFORSECURITYPOLICY: Jerusalem, the Eternal Front Line