Planning a trip to Budapest but not sure where to stay? I’m here to help!
Choosing where to stay in a new city can sometimes be daunting. For me, I like somewhere that’s central but also quiet with a local feel.
Thankfully, deciding where to stay in Budapest is a little easier than most cities. The city’s tourist area is relatively small, and it doesn’t feel too busy or overwhelming.
In this guide, I’ve shared the best places to stay in Budapest, including a variety of budget and luxury accommodation options. I’ve also shared my personal favourite place to stay in Hungary’s capital (spoiler: Districts V and VII).
An overview of districts in Budapest
Before we get started, let’s look at Budapest as a whole. The Hungarian capital was once three cities: Buda, Pest and Óbuda. In 1873, the three cities merged to create Budapest.
Visitors to Budapest mostly stay in either Buda or Pest, which are separated by the Danube River. Buda is located on the west side of the river and is home to the historic Buda Castle. Pest is known for being slightly more modern, and it’s where you’ll find most of the restaurants, bars and accommodation.
Budapest is also divided into different neighbourhoods, or Districts, as they’re known locally. The city consists of 23 different districts in total, many of which come with their own unique charm and character.
Of all those districts, only a handful are suitable for tourists, especially first-time visitors to Budapest.
Keep on reading to find out which I recommend.
The best places to stay in Budapest
District I – The Castle District
Let’s begin with the Buda side of the river. District I, or the Castle District, is an excellent location to base yourself in Budapest.
This is one of the most beautiful parts of Budapest. With narrow cobblestone streets, colourful buildings and impressive architecture, it’s a wonderful part of the city to explore.
District one is where you’ll find some of the city’s top sights, including Buda Castle, Fisherman’s Bastion and Matthias Church. There are also some epic views of the city and Chain Bridge, as well as a lovely walk up to Gellert Hill.
While this area of Budapest might seem like the obvious place to stay, there are a few drawbacks. Firstly, with thousands of tourists visiting the area every single day, it can feel hectic and crowded. I also found that many restaurants and cafes were tailored to tourists. There are quite a few international chains with higher prices than other parts of the city.
It’s also important to know that this part of the city is quiet at night. Most of the nightlife takes place over the river, and many restaurants close as soon as the tourists leave for the day. Even if you’re not looking to party in Budapest, you’ll likely need to cross into Pest in the evenings.
The other main drawback is the lack of metro lines. The public transportation stops are mostly by the river, so you’ll need to walk up and down the hill/steps to get to and from the rest of the city.
It took me about 30 minutes to walk down the hill from Fisherman’s Bastion and across the bridge. Luckily, it’s a lovely walk with lots of impressive sights along the way. If you want a hotel close to the bridge and public transportation, consider Hotel Clark.
You may also find part of District II is suitable. Just be sure to look close to the river to ensure you’re in an ideal location for getting around.
Nearby attractions: Buda Castle, Gellért Hill, Fisherman’s Bastion, Matthias Church, Rudas Thermal Baths
Pros:
- Close to the historic attractions
- Beautiful views of Pest and the rest of the city
- Plenty of restaurants to choose from
- Peaceful at night
Cons:
- Can be busy during the day
- Very touristy, and lots of the restaurants close quite early
- Steep hills might be off-putting for some
- There is limited public transport
Budget options
👉 Butik Apartments is a well-located hotel close to the river. It’s the perfect place for those who want to stay in Buda, but it also has easy access to the Pest area of the city.
👉 The charming and well-reviewed Váralja Home Hotel is close to the Budapest History Museum and places like Buda Castle. It’s a great budget option which provides everything you need.
Mid-range/luxury options
👉 Hotel Clark is one of the nicest hotels in Budapest. It’s modern, some of the rooms have epic views of the city, and it’s an adults-only hotel. It’s also located close to the bridge and metro station, making the rest of the city very accessible.
👉 The rooms at Boutique Hotel Victoria boast epic views of the Danube. It’s another well-located hotel, and it even has a sauna.
👉 Pest Buda Design Hotel is a stylish boutique hotel near Matthias Church. The hotel originally opened in 1696 (!) but has been recently renovated. It’s certainly a unique place to stay in Budapest, but it will require some walking up and down the hill.
District V – Belváros-Lipótváros (the city centre)
Moving over to the Pest side of the river, District Five is arguably one of the best places to stay in Budapest. Situated on the Danube Riverfront from Great Market Hall (Central Market) to Margaret Island, this part of the city has a classic Eastern European feel and boasts beautiful views of Buda.
This area is the heart of Budapest and it’s the city’s political, financial, and cultural hub. It’s also where you’ll find many popular attractions, including the Hungarian Parliament Building, the Shoes on the Danube Bank, St Stephen’s Basilica, and Váci Street.
Most of the best things to do in Budapest are within walking distance of this area, as well as countless restaurants, cafes and bars. It’s an excellent place to stay during your time in Budapest. Many of the hotels are in traditional buildings with a long history.
The only real downside is that it’s very touristy, and I wouldn’t recommend it to those looking for a more local experience. There are quite a few coffee and restaurant chains, international shops, and tourist traps.
Having said that, there are still some gems in this area with a few local favourite spots, such as Espresso Embassy, Artizan and Café Gerbeaud.
Nearby attractions: Vaci Street, St Stephen’s Basilica, The Danube Riverwalk and the Hungarian Parliament Building.
Pros:
- Most attractions are within walking distance.
- There are plenty of restaurants, shops and cafes.
- It’s well-connected to the rest of the city.
Cons:
- Prices tend to be higher.
- It can be very touristy.
- It lacks a local feel.
Budget options
👉 Adagio Hostel Basilica lies right on the edge of the district. It’s a budget-friendly option close to many of the city’s main attractions. It has a couple of dorm room styles to choose from.
👉 Maverick is one of the best hostels in Budapest, with several locations around the city. Maverick Downtown is one of my favourites. The building is beautiful, and it has a range of rooms to choose from, including private rooms, shared dorms and female dorm rooms.
👉 If hostels aren’t your thing, Hotel Central Basilica is a fantastic budget option. The hotel is in the heart of Budapest and only a couple of minutes’ walk away from St Stephen’s Basilica.
👉 Three Corners Hotel offers a charming stay with a blend of modern comfort. This is one of the best options if you’re looking for a taste of luxury without breaking the bank.
Mid-range/luxury options
👉 The Aria Budapest by Library Hotel Collection is one of Budapest’s finest hotels. Set in a classic Hungarian-style building, this 5-star hotel comes with a rooftop bar, a sauna and even a music library. Each of the rooms are based on one of four different music styles. If you want to stay in one of the best hotels in Budapest, look no further than Aria.
👉 Boutique Residence Boutique is another excellent hotel option, coming in at a much cheaper price than the likes of Aria. It’s well-located, the rooms are modern, and the hotel is reasonably priced.
👉 The elegant Prestige Hotel is a fantastic option in Budapest. It’s close to Chain Bridge and the Danube River and offers rooms with a classic Hungarian feel.
👉 Once the Ritz/Carlton, Al Habtoor Palace Budapest is a stunning five-star hotel located in the heart of the city. With its grand architecture, classic interiors, and top-tier amenities, it offers a luxurious experience.
District VII – Erzsébetváros
District 7, also known as Elizabeth Town, is home to the famous Jewish Quarter. More recently, it’s become the centre for nightlife in Budapest, and it’s where you’ll find many bars, trendy restaurants, specialty coffee shops and clubs.
The Jewish Quarter is home to iconic landmarks, including the magnificent Great Synagogue and the Jewish Museum. I also found this area of the city to be one of the most vibrant and cultural. There’s some impressive street art dotted around the area, and there are lots of boutiques and unique shops.
The 7th district is also filled with ruin bars, which are set in abandoned buildings and are popular with locals and tourists alike. Szimpla Kert is one of Budapest’s most famous ruin bars and an absolute must-visit.
Staying in the Seventh District is an excellent option to experience the best of Budapest’s food scene. The area has plenty of upscale yet affordable restaurants serving an array of cuisines. One of my favourite restaurants in District VII is Mazel Tov, a Mediterranean and Middle Eastern restaurant. Rosenstein Restaurant is another fantastic choice, with a range of Hungarian dishes on offer.
District VII is incredibly well-located. Most of the main sights are within a twenty-minute walk, and the area tends to be a little less crowded (and cheaper) than District V. I also found it offered a much more local feel than the main city centre.
It’s the perfect spot for those looking to make the most of Budapest’s nightlife and food scene. Even if you’re not planning to party, it’s still an excellent choice, and there are plenty of hotel options that are away from the bars.
If you plan to stay in this area, I’d recommend opting for a hotel closer to District Five and the city centre. The area of Erzsébetváros stretches quite far away from the Danube. It’s still well-connected to the city, but it might be a bit far to walk everywhere on foot.
Main attractions: Great Synagogue, ruin bars, the Jewish Museum & street art.
Pros:
- Excellent location
- Hub for nightlife and entertainment
- Vibrant with a local feel
Cons:
- It can be noisy in some areas at night.
Budget options
👉 East Station Apartments are a fantastic budget option and come with a kitchenette. The only downside is that it’s a bit far from the city centre, so you might find you need to use trains instead of walking.
👉 Maverick Budapest Soho is an excellent option for those looking for a social, modern and clean hostel. There are a range of private rooms as well as dorms.
👉 Roombach Hotel Budapest is a stylish boutique hotel that is well-situated. It’s close to the bars and restaurants of District VII, but it’s well within walking distance of the city centre.
👉 Simple yet sufficient, the Ibis Hotel in Budapest is a fantastic budget option for those who still want to be in a central location.
Mid-range/Luxury options
👉 The Corinthia Hotel is one of the most famous hotels in Budapest. Opened in 1896, this hotel is in a classic building with a range of rooms to choose from. For the quality of hotel, it’s very reasonably priced.
👉 The Continental Hotel is a luxurious, four-star hotel located in the heart of the city’s cultural district. Housed in a beautifully restored 19th-century building that was once home to traditional baths, it combines historical charm with modern amenities.
District VI – Terézváros
District VI, known as Terézváros, is located next to District VII. Like with Erzsébetváros, I recommend finding somewhere closer to the city center to avoid relying too much on public transport.
Known for its vibrant atmosphere, it’s home to several of Budapest’s most iconic landmarks, including Andrássy Avenue and the famous Opera House.
Staying in District VI puts you at the heart of the city’s cultural scene, with theatres and galleries nearby. Andrássy Avenue also has luxury shops and fancy restaurants. With grand architecture and traditional buildings, District VI offers a local experience in the heart of the city.
There is also the lively Liszt Ferenc Square, known for its outdoor terraces and restaurants, Városliget (City Park) and the famous Heroes’ Square.
With a range of accommodations, from boutique hotels to luxurious stays, District VI is an ideal base for exploring Budapest in style while still being well-located.
Nearby attractions: Heroes’ Square, Andrássy Avenue, The Opera House & City Park.
Pros:
- Excellent location
- Close to major attractions
- A range of accommodations for all budgets
Cons:
- If you choose to stay further away from the river, you may need to use public transport
Budget options
👉 Avenue Hostel is one of the highest-rated hostels in Budapest. It’s within walking distance of many attractions and close to the House of Terror Museum. There are both dorm rooms and private rooms on offer.
👉 12 Revay offers modern rooms and excellent amenities at an affordable price.
👉 Medos Hotel is a basic hotel found right in the heart of the action. It’s a great compromise on affordable prices yet being central.
Mid-range/luxury options
👉 The four-star Cortile Hotel is a luxurious option close to the city centre. With an indoor pool boasting epic views and stylish rooms, it’s one of Budapest’s highest-rated hotels. (This is an adults-only hotel).
👉 Located just steps away from Andrássy Avenue, Hotel Moments offers stylish rooms in a traditional building. It’s in an ideal location for making the most of Budapest’s cultural offerings, such as the Opera House.
District IX – Ferencváros
District 9, or Ferencváros, is an excellent option for those who want a more local experience. Beginning at Central Market Hall, the District stretches south along the Danube River. The further south you go, the more residential it becomes.
District 9 is known for its riverside views along the Danube and is very much an up-and-coming area. There are lots of modern apartment buildings and entertainment venues. Its residential feel offers a more peaceful stay while still being easily accessible to central attractions via public transport (and via foot if you’re feeling energetic).
Ferencváros is also home to the National Theatre and National Theatre Monument.
I wouldn’t recommend it for those who want everything on their doorstep, but it’s ideal for longer stays or for those who want to stay somewhere more local.
Nearby attractions: Central Market Hall and the National Theatre.
Pros:
- Well-connected to the rest of the city
- Quiet with lovely views of the Danube and Buda
- There are still plenty of restaurants and cafes to try
Cons:
- It’s a bit of a walk from the city centre
- You’ll likely need to use public transportation to get around.
Accommodation options
👉 Maverick Central Market is a fantastic hostel option in the 9th District. My friend stayed here and loved it. It has a social bar downstairs, and many of the city’s attractions are within walking distance.
👉 Meininger is another well-located budget hotel option. While it’s a simple hotel, it has everything you need for a comfortable stay. There is even a dorm room option.
👉 Ibis Styles is another of the several Ibis hotels in the city. It’s close to various public transportation options.
Other good places to stay in Budapest
If you’re still undecided on where to stay in Budapest, there are a couple of other places to consider.
District VIII: Budapest’s 8th District (Józsefváros) is a potential option. Although it’s certainly more local than other areas, it’s still well-connected to the rest of the city. Also known as the Palace District, it has several historical buildings with beautiful architecture.
District II: The 2nd District offers a peaceful and picturesque destination in the city. There are great views of the Danube River and Margaret Island and good transport connections. I recommend staying close to the river to ensure you can access the trains, trams and buses.
Summary: Where is the best area to stay in Budapest?
I don’t think you can go wrong with staying in District V (the city centre) or VI. Most of the attractions, restaurants, and cafes are within walking distance, and it’s a beautiful and safe area of the city. The riverfront in District I (Buda Castle District) is another good option (if you’re happy to walk across Chain Bridge).
If you’re keen to stay in a more local area, I suggest District VII or the border of 7 & 8, which is where I stayed. It’s well-connected to the rest of the city, you can still walk to the centre. There are plenty of quality restaurants and bakeries to try, as well as the famous ruin bars. Although it’s the hub for nightlife, I personally didn’t find it too noisy at night.
Ultimately, Budapest is quite a compact city, especially when it comes to places that are popular with tourists. Providing you stay in one of the districts mentioned above, you can’t really go wrong.
