My wife and I stayed here with a tour group a couple of weeks ago. We then stayed an extra week and stayed at the Knights Palace for another 4 nights. Both hotels have an excellent setting in the old city, within walking distance to shops, churches and even the Western Wall. The hotel owners are friendly and accessible and willing to help with problems you may encounter. The Gloria has free wifi in the lobby.
Staying at the Gloria also gets rid of the need for a rental car since everything is withing walking distance. If you need transportation, there are taxis just down the street in front of Jaffa gate (make sure you know the price up front). There are also 2 nice restaurants across the street along the old city walls.
But - is this hotel for everyone? NO! If you want a modern 4 or 5 star experience in a sterile setting then this not the hotel for you. The beds and food are not American, but are adequate. You will need to do quite a bit of walking to get to places, for me this was fun and a part of the experience (others will find it tiresome).
If you want a great view of the old city while at the hotel, take the elevator to the 3rd floor. You can walk out on the roof and have a great view of Jerusalem!