When it comes to luxury hotels in Israel, I highly recommend the Leonardo Plaza Hotel, more commonly referred to as the Plaza, in Jerusalem. It actually is not very surprising to learn that this hotel is one of the most luxurious ones in Jerusalem. It is the former Sheraton Hotel, one of the biggest hotel chains the world before. The Plaza is located in the most ideal spot in Jerusalem. It is within walking distance of both the Old City, where the ancient structures are, and the modern Jerusalem. The amenities are awesome, too!