A fabulous boutique hotel in a splendid Ottoman mansion from 1836, the 'house of saffron' was lovingly restored by a Swiss-Syrian couple. The 12 rooms are sumptuously furnished, decorated with traditional crafts and textiles, and come with a/c, heating and large bathrooms. Guests can relax and sip complimentary herbal tea in the central courtyard, with fragrant citrus trees and a fountain. Dinner is served at the rooftop restaurant Veranda, with great old town views all round. Smoking is limited to one designated outdoor area. Find Beit Zafran in the eastern part of the old town, behind St Teresa Church. With the Ummayad Mosque and the souks to the west and the Christian district with the restaurants and nightlife to the east, it's the perfect base for exploring Damascus. 
Room rates vary from $210 for a single room to $230 for a double and $510 for the suite and can be booked through what is probably the best hotel website in town.