I just returned from Israel. Fortunately, I had used points for all my rooms - but even the hotel in Eilat (usually offering big discounts and promos this time of year) emailed me a few days prior to arrival to confirm I'd be showing up. It was very crowded down there. Jerusalem and Tel Aviv were busy but I can't say "oversold". It seemed like there were a lot of Israelis at tourist attractions in both places. Under US$50 a night sounds like a deal, as even prior to this mess, a standard business-style hotel in Jerusalem was over $200/nt.