Our family of 3 stayed at this hotel for 5 nights. I am thankful we made the decision to stay here. The hotel has a lot of architectural charm, the front desk staff was always welcoming and helpful, the restaurant prices are reasonable and the food was very good (& the restaurant includes a nice outdoor eating area), and guests have free access to a modern, state-of-the-art YMCA facility complete with indoor basketball courts and an olympic sized swimming pool. Perhaps the best feature is the hotel's excellent location. It is in a very nice neighborhood and within walking distance of the Old City.
We visited the King David Hotel across the street for lunch one afternoon. While that hotel does have a gorgeous outdoor swimming pool and more luxurious amenities, the atmosphere felt a bit stiff. In contrast, the Three Arches Hotel was unpretentious and down to earth, though not without its own quality amenities.
There is only one elevator to get to the higher floors and it is relatively small. However, I don't recall having at any time to wait for an unreasonable amount of time to get to my floor.
The tower at the top of the hotel is well worth visiting for the view!
We were planning to turn in our Avis rental car upon arrival in Jerusalem, but the hotel parking was so convenient (there was always a space available) that we ended up hanging onto and making good use of the car throughout our stay.