Where to Stay in Budapest

Top Tips

BudapestImage by Charles from Pixabay

Budapest is the marrying of Buda and Pest, occupying opposite sides of the Danube from each other, and picturesquely connected by an elegant bridges. Each side has its own charms, and reasons to choose it as a base for exploring the city, but the majority of accommodation is to be found on the Pest side, which is today’s city centre — and the area with the lion’s share of headline sights for visitors. Pest has the impressively vast and Gothic Hungarian Parliament Building; St. Stephen’s Basilica; the Chain Bridge; the Shoes on the Danube Memorial; Liberty Square; Andrássy Avenue; Heroes’ Square; and a myriad of grand places to stay, eat, drink and shop. But smaller Buda competes with historic atmosphere; the castle; the Matthias Church; and the National Gallery. Budapest is covered in glorious architecture on both sides, views at every corner, and plenty to appeal to everyone — from families to party people; couples seeking romance; and those with an interest in this city’s tumultuous past.

Our Guide to the Neighbourhoods of Budapest

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Historic Centre/Castle Hill/Budapest 1

Castle HillImage by veronika szappanos fr

Budapest’s Historic Centre is Castle Hill, on the Buda side, a kilometre long UNESCO World Heritage Site where you can find the former Royal Palace, the Matthias Church and the National Gallery. Castle Hill is also where you’ll find the Fisherman's Bastion, reminiscent of something from a Disney film with its with turrets and pointed towers, this is a lovely spot to visit and it boasts some of the best city views you'll find. Charmingly cobbled and history-laden, Castle Hill is the perfect place to stay if you’re here for the atmosphere and the magical major sites. This is a wonderful neighbourhood for spectacular architecture: the area directly around the Royal Palace is particularly grand (there are a couple of very elegant townhouses turned chic hotels here); whereas the Old Town, where the commoners lived, has some lovely old hotels and spacious aparthotels — ideal for families as they're slightly away from the busiest action, and within an easy walk of magical sights. One way of navigating this part of town is on the Sikló, a funicular railway built in 1870.

Pros and Cons

  • Pros: historic; atmospheric; major sights; beautiful architecture; grand hotels
  • Cons: quieter; off centre
  • Ideal For: families; history lovers; romantics; luxury lovers

Discover our selection of hotels in Budapest 1

Belváros/ Downtown/ District V

BelvarosImage by Ferenc Wilmek from Pi

Across the Danube from Castle Hill is Belváros, which translates to ‘Downtown’, and is also referred to as District V. This long, thin neighbourhood runs alongside the river, making it the perfect place to put a hotel-with-a-view. Actually, District V is a neighbourhood with lots of hotels and restaurants. It’s also where you’ll find some of the city’s major sights: St. Stephen’s Basilica, the Chain Bridge, the Shoes on the Danube Memorial, Liberty Square and the impressive Hungarian Parliament Building. District V also has the famed boutique shopping precinct, Vörösmarty Square. This is a beautiful neighbourhood for just walking around, with wide boulevards, grand architecture and plenty of elegant grand cafes. It has also got excellent transport links to all of Budapest’s other major sights. While the fifth has plenty of hotels, the majority are of an elegance to match the surrounds — there are a number of extremely grand hotels, and boutique offerings, but not a huge amount in the way of budget accommodation.

Pros and Cons

  • Pros: major sights; beautiful architecture; central; elegant; historic; atmospheric; great transport links
  • Cons: can be expensive
  • Ideal For: city breaks; romantics; luxury lovers; families

Discover our recommended hotels in Budapest V

Terézváros/ District VI

TerezarosImage by Charles from Pixabay

The next district by number, as well as location, is Terézváros, or District VI. Terézváros is less elegant, but it does include Budapest’s main road, the Great Boulevard, and UNESCO listed Andrássy Avenue — often referred to as ‘Budapest’s Champs-Élysées’. This neighbourhood is where you’ll find the beautiful Hungarian State Opera House, and several rows of architecturally gorgeous shops and cafes. It also has the Budapest Zoo and the Botanical Gardens. But just a few blocks off Andrássy Avenue the neighbourhood becomes less well maintained, with a mix of residential and commercial properties. This makes for varied accommodation options too, and while there are numerous luxurious hotels here, there are also some great value options. The same can be said for restaurants and cafes — there’s something for everyone here!

Pros and Cons

  • Pros: central; major sights; beautiful architecture; historic; green spaces; great transport links; great range of accommodation
  • Cons: grittier in places; more residential
  • Ideal For: city breaks; travellers on a budget; sightseeing; party people; cool kids

Click here for our recommended hotels in Budapest VI

Erzsébetváros or Elizabeth Town/ District VII

ErzsebtvarosBy Fred Romero from Paris, Fra

District VII, or Erzsébetváros — which translates to Elizabeth Town — is bohemian and hip, known for being a lively nightspot, a great place for craft beer, speakeasies and food trucks. It’s a top choice for cool kids to stay, with accommodation and dining options ranging from cheap and cheerful, to historic and elegant. Historically part of Erzsébetváros was the Jewish neighbourhood, which is why it’s home to the Great Synagogue and the Jewish Museum; and part of Erzsébetváros was known for its craftspeople and artisans. There’s a hint of this still today too, with the district housing a number of art and design shops, and design studios. Walking around the seventh and you’ll see some ornate 19th century architecture, a number of moving Jewish monuments, and the theatre district. It’s also home to the House of Terror, a museum converted from the headquarters of the dreaded ÁVH secret police, which tells the stories of the atrocities committed between WWII and the 1956 Uprising.

Pros and Cons

  • Pros: central; historic; lively; great places to eat and drink; varied accommodation options; theatre; great transport links
  • Cons: busy of an evening
  • Ideal For: cool kids; foodies; party people; night owls; great value accommodation

Click here for our recommended hotels in District VII

Józsefváros or Joseph Town/District VIII

JozsefvarosBy Globetrotter19 - Own work,

Józsefváros is the last of the central Budapest districts to be redeveloped, so as well as seeing more pre-war architecture here, you’re also likely to see the marks of the 1956 uprising, and WWII — look for bullet pockmarks especially, and beware of a grittier atmosphere come the evening. Józsefváros is an easy walk from the major attractions of central Pest (about 15 minutes). The inner city Districts III and V are to the east, District VII is to the north, and at the heart of the neighbourhood is the Palace Quarter, a collection of grand palaces and mansions surrounding what’s now the National Museum. As well as the museum there are some impressive local universities, so this is a lively, as well as elegant part of the district. This student hub with its authentic architecture, and Baroque boulevards is being regenerated by hipsters, and as you explore this neighbourhood further you’ll find vintage shops, and a burgeoning and creative food and drinks scene - some of the best of this can be found around pedestrianised Mikszáth Square. Serious foodies should seek out Rákóczi Market Hall, which is similar to the Great Market Hall both in traditional and local offerings, and impressive architecture and details, but well off the beaten tourist trail, so better value.

Pros and Cons

  • Pros: major sights; great places to eat and drink; vintage shopping; market shopping
  • Cons: gritty and rough around the edges in places
  • Ideal For: cool kids; travellers on a budget; explorers; living like a local

Discover our recommended hotels in District VIII

Palace Quarter

Palace QuarterBy Nikolai Karaneschev, CC BY

The Palace Quarter is a small neighbourhood behind the National Museum within District VIII. This is one of the architecturally grandest neighbourhoods, where the aristocracy built their fabulous palaces. While these mansions and palaces have long been converted to other uses — including elegant accommodation — in this part of Pest pre-war grandeur still lingers. For a chance to see something of what these buildings were like visit the Municipal Szabó Ervin Library, which has preserved some of the original rooms of the upper floors. As well as being close to the very excellent National Museum, visitors who stay in this part of town are close to a number of excellent cafes, bars and pastry shops, and the grandest, most historic cemetery in Budapest, the Kerepesi. There are a number of universities in the area too, lending a lively atmosphere day and night.

Pros and Cons

  • Pros: grand; elegant architecture; historic; great cafes, bars and restaurants; major sights
  • Cons: quieter; lots of university students
  • Ideal For: history lovers; romantics; families

Discover our recommended hotels in District VIII