As I have said before, I am a Travelers Aid Volunteer at EWR. My shift is 4-9pm on Sundays, working our desk in Terminal B, international arrivals.
There are two "peaks" on international arrivals, chiefly 2-5 and then 7-9, so your flight would fall right in the middle of the first of the evening peak times. During these peak times, US Citizens usually exit Customs/Immigration between 45-90 minutes from the actual artival time for the flight, add another 30-60 for non-citizens.
In the past 3 months, the CO TLV flight has NEVER come into Teminal B, which is a huge plus for you, as you will not have to switch Terminals.
Also, irrespecrive of any status, Continental will not provide hotels for stranded passengers, nor will they stray off-carrier (except for UA) and the occasional *A partner. They definitely won't go out of alliance.
Our "discount" hotels for stranded passengers usually are sold out by 5pm (the airline wont even give you one of these vouchers, but we will), and the Marriott (only hotel on airport property) usually is sold out by 6 or 7pm. Most other hotels that offer transportation run about 125-135 with tax.