Where to stay in Budapest , The 4 best areas and accommodations

Budapest is one of Europe's most enjoyable, yet underrated, cities. While it has become increasingly popular in recent years, it still has considerably fewer tourists compared to cities like London, Paris, or Rome (around 80% fewer, to be precise).

A favourite destination for backpackers seeking vibrant nightlife, Budapest also offers rich historical sights, plenty of affordable dining options, and naturally, therapeutic thermal baths. A significant positive aspect of Budapest is that activity prices are much more budget-friendly compared to Western Europe.

Given that the city comprises three distinct areas (Buda, Pest, and Óbuda), choosing the right area for your stay is essential. Although Budapest is not enormous, selecting the wrong neighbourhood can lead to losing valuable time travelling from one place to another.

The best neighbourhoods to stay in Budapest. 

Where to stay if you're visiting the city for the sights: Castle District (District 1)

Stretching along the Buda side, this popular district is home to Buda Castle, Fishermen's Bastion, and the imposing Gellért Hill, which offers stunning city views. Additionally, this area houses the famous Rudas and Gellért thermal baths. It's a beautiful area for your stay, with many luxurious accommodations and sophisticated dining options. The Széchenyi Chain Bridge, connecting the area to District V, is also nearby.

The best hotels to stay in the Castle district

Budget

Hotel Orion Várkert

A small three-star hotel with simple but comfortable rooms featuring a desk, electric kettle, and small fridge. A simple yet rich breakfast buffet is included. Its location is ideal, right next to the castle and the Danube, as well as a short distance from the main attractions.

Mid-Range

Monastery Boutique Hotel

A modern four-star hotel housed in a 300-year-old abbey, offering authentic exposed brickwork in many of its rooms. The beds are comfortable and large, and the showers provide good water pressure. Desks and electric kettles are also included in each room. Breakfast offers delicious options with fresh pastries, fruit, and yoghurt. The hotel is located right next to Fishermen's Bastion and Castle Hill.

Luxury

Hotel Clark

This five-star accommodation is for adults only. Rooms are spacious and offer many amenities, including desks, flat-screen TVs, and multiple power outlets. The beds are comfortable and soft, and the showers have strong water pressure. There is a hotel bar with a sophisticated atmosphere, and breakfast offers a variety of options.

Where to stay for convenience: Parliament and Belváros (District V)          

This is the heart of the city, so if it's your first time in town or if you only have a few nights, then this is the perfect choice for you. You'll be within walking distance of many of the top attractions, including the impressive Parliament building and St. Stephen's Basilica. Also, the stunning chain bridge is nearby, along with the Great Market Hall. Just keep in mind that this area isn't the cheapest. However, if you're willing to spend (a little or a lot), then you won't be disappointed!

Best accommodation options in the Parliament & Belváros area:

Budget

Green Hotel Budapest

This 4-star hotel is located next to the Hungexpo Exhibition Centre, and just a few steps from the Puskás Ferenc Stadion metro station on line M2. The spacious rooms at Green Hotel Budapest have distinct decor and include a flat-screen satellite TV, a small fridge, and a bathroom with a hairdryer. The Green Hotel's restaurant serves Hungarian and international cuisine.

Mid-Range

Bohem Art Hotel

Staying at this accommodation will feel like being in an art gallery. The lobby has a retro vibe, while both the lounge and rooms are impressively decorated with artwork. The beds are comfortable and rooms feature desks and multiple power outlets, as well as an electric kettle. Breakfast is excellent with plenty of choices. It's located right near the river and the Váci utca shopping street.

Luxury

Matild Palace Hotel

This luxurious five-star hotel resembles a palace. Breakfast is excellent with rich options, and there's a large gym with a sauna and several on-site restaurants. The rooms are exceptionally luxurious and ornate, with elegant chairs and sofas, comfortable beds with thick mattresses, and large, beautifully tiled bathrooms. You'll feel like royalty when you stay here.

Where to stay for local atmosphere: Terézváros (District VI)

This area, located on the Pest side of the city, is quite a bit more affordable than the others and hosts the most popular thermal bath, Széchenyi. Beyond that, there are many other tourist attractions, including the House of Terror Museum and the Opera House. Andrássy Avenue, a UNESCO site resembling Paris's famous Champs-Élysées, is also found here.

While there's plenty to see and do, the neighbourhood isn't as packed with hotels as other areas. This means it offers a mix of convenience (you can still walk to the city centre), while also allowing you to experience a bit more of the local pace of life.

The best places to stay in Terézváros:

Budget

Silver Hotel

This three-star hotel is located right near the Andrássy Avenue shopping street. Rooms are basic but bright and airy, and the beds are comfortable. There are plenty of power outlets and desks should you need to work. The European breakfast offered has a good variety of food, but the real highlight is eating on the balcony and enjoying the city views.

Mid-Range

Mirage Medic Hotel 

Rooms here might look a little dated, but they are clean, spacious, and the beds are comfortable. There's a desk and electric kettle, and shower pressure is good too. There's also a simple complimentary breakfast with bread, coffee, and cereals every morning. The main advantage, however, is how close this hotel is to Széchenyi, Budapest's most popular thermal bath.

Luxury

W Budapest

This hotel features large and colourful rooms. Each had a unique interior design, with different colours and styles, including hardwood and parquet floors. The bathrooms are enormous and beautiful, with lovely tiling and showers with perfect water pressure. The lounge has a retro-chic atmosphere and, given it recently opened, everything feels fresh and new. There's also an indoor pool.

Where to stay for food and nightlife: Jewish Quarter (District VII)

Visiting the Dohány Street Synagogue is an integral part of any visitor's experience in Budapest. However, the main allure of this area lies in its nightlife, specifically the ruin bars.

Over time, the underground entertainment venues hidden in abandoned buildings have become a significant part of the city's vibrant nightlife. The bars here are unique and eclectic, unlike any other bar you've visited – simply a must for new visitors. The popular (and 'coolest') Szimpla Kert, as well as the enormous Instant-Fogas complex (a combination of ruin bar and club), are both located here.

The popular Karaván outdoor food market (right near Szimpla) is also here, offering a wide variety of fantastic treats. If you're vegan, some of the city's best vegan restaurants are also within easy reach.

The best places to stay in the Jewish Quarter:

Budget

B&B Hotel Budapest City

This beautiful hotel is located 1.6 km from the Hungarian National Museum and offers accommodation with a fitness room, private parking, a terrace, and a bar. Property amenities include a restaurant. All units at B&B Hotel Budapest City feature a seating area, a flat-screen TV with satellite channels, and a private bathroom with complimentary toiletries and a shower.

Mid-Range

Vagabond Grand'Or

This modern apartment hotel features spacious rooms with balconies and kitchens, ideal for families or travellers who want to cook their own meals. There are sofas and flat-screen TVs, a dining table if you want to eat in, and free Wi-Fi (with Netflix). Rooms feature comfortable beds and the overall design is sleek yet minimalist. A simple continental breakfast (with vegan options) is also offered every morning. 

Luxury

Anantara NY Palace

A luxurious five-star hotel with opulent interiors and a palatial lobby, this accommodation features an indoor pool, sauna, steam room, and a large gym. The cocktail bar stands out, with live piano music and excellent drinks. Rooms are enormous, with incredibly comfortable beds, desks and sofas, minibars, and flat-screen TVs. Bathrooms are also massive, with beautiful tiling and huge bathtubs.

While there are many other areas to stay in Budapest, these are the neighbourhoods where most travellers spend the majority of their time in the city. If you're here to see the main sights, enjoy the nightlife, learn about the city's past, and savour its incredible cuisine, these are the best neighbourhoods to focus on. You won't be disappointed!

Frequently Asked Questions (FAQ)

Which area is best for accommodation at the destination?

The ideal area depends on the type of trip you're planning. If you're looking for vibrancy, restaurants, and easy access to attractions, choose the historic city centre. For a quieter stay with good value, opt for neighbourhoods just outside the centre that are well-served by public transport. Families usually prefer accommodation with space and easy access to parks or beaches.

How many days do I need to visit the destination?

For an initial acquaintance with the main sights, 2 to 3 nights are sufficient. If you want to explore the surrounding area, enjoy the gastronomy, and truly relax, allow 4 to 5 days. For a base-trip with day excursions, a week is ideal.

When is the best time to visit?

Spring (April-June) and autumn (September-October) usually offer the best combination of pleasant weather, fewer crowds, and more affordable accommodation prices. Summer is the busiest period, while winter suits those who want an authentic experience without tourist crowds.

How can I book accommodation at the best price?

Booking through Booking.com offers flexible cancellation policies, real guest reviews, and often the best available prices. Book 2-3 months in advance for peak tourist season and compare prices between neighbourhoods, as being a few minutes further from the centre often means significant savings.

Is the destination safe for tourists?

Yes, it is a visitor-friendly destination. As with any trip, it's advisable to be mindful of personal belongings in crowded areas and on public transport, and to use reliable means of transportation. Highly-rated accommodations are usually located in safe neighbourhoods.