I am very familiar with the Sheraton Jerusalem Hotel. The suites are not very nice. Most of them are old, with old furniture. The Hotel does have some newer rooms on the 11th 13th and 15th floors. However, these rooms do not have redone bathrooms. The hotel has recently put up signs that they are going be under renovation in the near future, but who knows.
As was suggested before, the David Citadel Hotel around the block is the nicest in the area. 5 star+
Enjoy