The Erloier Rebbe, a direct descendant of the Chatam Sofer, passed away a few weeks ago. Many people wonder why he decided to set up his Beit Midrash and chassidic center in the middle of the Katamon neighbourhood. A rather national religious and secular part of Jerusalem.
I heard that the Erloier Rebbe did this on purpose and was thus the only chassidic Rebbe whose center is not located in a stricly haredi neighbourhood.
Most of the Chassidim live in and around Old Katamon.