A budget hotel recommended by many travellers, find the Joole Jamaal (also spelled Joul Jammal and Gol Gammal) just west of the old town, next to the Qasr al-Adli Palace of Justice, above Nabil Nafisa Sweets. It has lovely staff, a shared kitchen, free drinking water, warm to hot water in the showers, decent wifi, and 24-hour electricity. Prices don't seem to be fixed, but count on paying around $15 for a small single room with shared bathroom to $20-25 for a more spacious double room. It's named after Jules Jammal, a legendary and perhaps mythical military officer who is said to have sunk a French ship during the 1956 Suez Crisis, sacrificing himself in the process.
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