mike's place still has their tel aviv location, and in theory they'll be re-opening at some point in jerusaem, but i haven't heard anything concrete about that yet. a good alternaive is zabotinski's or mia if you're looking for a more "mature" crowd, or zolli's if you're loking for the under 20 set...
11

travelchik
and as far as hotels/hostels go, check out citadel hostel in the old city. pretty cheap, and usually has a good crowd staying there
12

travelchik
i know this thread is a bit old, but just saw the reply...fyi haoman 17 is open, they just went through a rebranding..
http://www.17haoman.com
Pro tip