I live there. Not really too many places... Leila Cafe is a nice place. Not a lounge or bar, just a food spot with nice hookah.
Byblos is another. It's a bar... pretty much a douchebag haven... but there are hookahs.
Hidden Hookah Cafe is probably your best bet. It's kind off a dive bar above another bar, only really noticable by the big hookah sign, and nothing else. I haven't smoked there though.