Where to Stay In Budapest: Choosing the Right Area and Hotel

Are you planning a trip to Budapest, one of the coolest cities in Central Europe? With its 23 districts spanning 525 square kilometers over both sides of the Danube River, where to stay in Budapest can be a little overwhelming.

I have recently spent a few days around the past New Year's Eve and still remember that it wasn't quite so straightforward deciding on a hotel to stay in Budapest.

So I put together a list of my favorite areas and hotels that fit any type of traveler. Whether you're a backpacker exploring Europe or a couple or family on a weekend getaway, I have the perfect accommodation for you!

Buda vs Pest in Budapest

Budapest is a city of epic proportions! Who can resist the opportunity to explore its iconic sites and experience the culture of Hungary's capital city? But first things first: Where should you stay? Choosing between Buda (the west side) or Pest (the east side) can be tricky!

The Buda side is the quieter of the two, with its hilly terrain and winding streets adding to its charm. However, if you're looking for a lot of nightlife and action, then this may not be the best option for you.

On the other hand, the Pest side offers plenty of entertainment; think buzzing bars, cozy restaurants, and wild nightlife. That being said, my personal recommendation would be for you to stay in Pest, there is so much to do and see here that you won't want to miss out and I highly recommend staying in Pest, especially if this is your first time to Budapest, as you will be missing out on things if you stay on the other side!

The best districts to stay in Budapest

Pest

Pest is home to some of my favorite districts. If you're here for the first time and want to experience some action and nightlife, then District V and the nightlife District VII will be ideal for you. However, if you're looking for something more relaxing and authentic, then I suggest checking out District VI, District VIII, and District IX!

Buda

If you're planning to stay near one of Budapest's top tourist spots, the Buda Castle, then the Castle District (District I) would be the ideal location because it is just a short walk from Castle Hill. It is in my eyes not the best area to stay in Budapest for any first-time visitors as it's only got the castle as an attraction and lacks so many other things to see and do.

1. Where to stay in Budapest for first-time visitors: Lipótváros & Belváros/City Centre (District V)

I strongly believe that pretty much all first-time visitors to Budapest should consider staying in District V!

Let me explain why: District V is located in the heart of the city and is known as the most charming district, with neoclassical-style buildings. District V is also great for shopping, offering both local boutiques and well-known brands!

District V is a great location to start your exploration of Budapest and the inner city. You can easily access other parts of the city using public transportation.

Deák Ferenc Square is the meeting point of subway lines M1, M2, and M3. Moreover, I took the airport bus (100E) from Budapest Airport, and it also stops at Deák Ferenc Square, which is so convenient!

Best area for:

• First timers

• Shopping

• Solo travelers & couples

Things to see & do in Downtown Budapest

Staying in District V is ideal if you are after some serious sightseeing. Famous tourist attractions in District V are surely the Hungarian Parliament Building, The Chain Bridge, the Central Market Hall, and St. Stephen's Basilica.

During the summer, check out the street markets at Deák Ferenc Square, and during the winter, head to Vörösmarty Square for the best Christmas markets!

Best hotels to stay in Downtown Budapest

($$$) Prestige Hotel Budapest

The Prestige Hotel Budapest is my favorite hotel in District V for its unbeatable location in the city centre. Located on the Pest side of the city, the hotel is within walking distance of many of the city's most popular attractions, such as Hero's Square, Széchenyi Thermal Baths, and it's still an easy ride to get to Buda Castle.

Check availability & best rates

($$) Áurea Ana Palace

The Áurea Ana Palace is a fantastic mid-range hotel located in the inner city. The hotel features a luxury spa, including a sauna and hammam.

Check availability & best rates

($) The Three Corners Downtown Edition Hotel

The Three Corners Downtown Edition Hotel is the perfect budget-friendly option. It offers basic yet comfortable rooms and a great location right in the city centre.

Check availability & best rates

2. Where to stay in Budapest for couples & families: Terézváros (District VI)

District VI, or Theresa Town, is ideal if you are here with your partner or family. It's not quite as busy as downtown, but you will still have plenty of restaurants and exciting sights within walking distance of your hotel.

District VI is where you can find many famous landmarks, such as Andrássy Avenue, the Opera House, the Music Academy, the Operetta Theatre, The House of Terror, and the city park.

If you stroll down Andrássy Avenue – a lovely, broad street lined with trees and a UNESCO World Heritage site – you'll eventually come across the Millennium Monument, the Vajdahunyad Castle, and the Széchenyi Thermal Baths. The baths are worth visiting in both summer and winter.

In winter months, they have an ice skating ring close to the baths in the City Park. It's absolutely perfect for a winter holiday and you can take classes, plus they have skate rental & sharpening.

Best area for:

• Couples

• Families

• Shopping

• Luxury

Things to see & do in Terézváros

One of my favorite things to do whenever I'm in a new city is try the local food, and in Budapest, that means Langos! Langos is a Hungarian deep-fried flatbread, and Retro Langos Budapest has, without a doubt, the best in town!

After you've stuffed yourself with traditional food, Budapest City Park is a great escape from the hustle and bustle. Relax or have a picnic – it's also a great spot for kids to run around and explore!

Best hotels to stay in Terézváros

($$$) Radisson Blu Béke Hotel

The Radisson Blu Béke Hotel is a luxurious hotel located in the heart of Budapest. It offers spacious rooms with views of the city, as well as an on-site restaurant and bar. The hotel also features a gym and a sauna for those looking to relax after a day of sightseeing.

Check availability & best rates

($$) Hotel Oktogon Haggenmacher

The Hotel Oktogon Haggenmacher is a great mid-range option for couples and families. It features comfortable rooms with modern amenities, such as flat-screen TVs and complimentary Wi-Fi.

Check availability & best rates

($) Benczur Hotel

The Benczur Hotel is the perfect budget option for couples and families. The rooms are basic but clean and comfortable, and the hotel offers an on-site restaurant with local Hungarian cuisine.

Check availability & best rates

3. Where to stay in Budapest for nightlife & partying: Jewish Quarter (District VII)

When you're in Budapest and looking for a lively nightlife scene, District VII is a must-visit. This area is popular with locals, tourists, and young people and constantly sees the opening of new nightclubs, pubs, wine bars, and cocktail bars.

Besides the vibrant nightlife, District VII also boasts street food, craft shops, and little specialty cafes. You can also find some unique brunch restaurants with impressive interiors here.

My favorites here are ARIOSO for breakfast or brunch and French brunch restaurant à table and Selah Coffee House for a decent cup in the morning. Or head to Gettó Gulyás for an authentic goulash. Make sure you reserve a table ahead of time to not miss out!

Best area for:

• Nightlife

• Younger crowds

• Street food

Things to see & do in the Jewish Quarter

For all party lovers in the Jewish Quarter, one must check out Szimpla Kert, Budapest's original ruin pub. The interior is filled with quirky furniture and decorations, such as old couches, bicycles, pianos, and more! There are also open-air courtyard areas where it's super chill to just hang out with a beer or cocktail!

For a more sophisticated brunch, the New York Cafe on Grand Boulevard is my absolute top choice! They offer traditional cakes and treats, which are to die for. It requires booking ahead or waiting in a veeery long line!

Best hotels to stay in the Jewish Quarter

($$$) Anantara New York Palace Budapest

The Anantara New York Palace Budapest is my pick for a luxurious hotel in the Jewish Quarter. The hotel features elegant rooms with modern amenities, as well as an on-site bar and restaurant.

Check availability & best rates

($$) Bo33 Hotel Family & Suites

The Bo33 Hotel Family & Suites is a great mid-range option for those looking to be close to the nightlife. It offers modern rooms and a great champagne breakfast every morning.

Check availability & best rates

($) NETIZEN Budapest Centre

The NETIZEN Budapest Centre is a super affordable option for those looking to be close to the nightlife. The hotel offers basic yet comfortable and modern rooms with all the necessities.

Check availability & best rates

4. Where to stay in Budapest for history & an authentic experience: Józsefváros/Palace District (District VIII)

The Palace District (also known as Józsefváros) is located adjacent to the Jewish Quarters in Budapest.

Previously, it was a less affluent part of the city and acquired the nickname “Chicago” due to its elevated crime rates. However, the government has initiated multiple rehabilitation programs to render the district more secure and desirable for investments.

Presently, the neighborhood has become a lively area of the city with numerous universities, museums, hospitals, and libraries.

Best area for:

• Culture

• Authentic experience

• Hipster scene

Things to see & do in District VIII

District VIII is home to the National History Museum, which is a fantastic place to visit if you're interested in learning about the rich history of Hungary.

And if you want to try some amazing traditional Hungarian cuisine, then I highly recommend you visit Cafe Csiga!

Best hotels to stay in District VIII

($$$) Kozmo Hotel Suites & Spa

The Kozmo Hotel Suites & Spa is my favorite luxurious option for District VIII. The hotel offers modern rooms, a top-notch spa, and super cozy beds.

Check availability & best rates

($$) Vagabond Corvin

The Vagabond Corvin is a great mid-range option for those looking to be close to the history and culture of Budapest. The stylish apartments come with a private balcony and kitchen.

Check availability & best rates

($) Corvin Plaza Apartments & Suites

The Corvin Plaza Apartments & Suites is the perfect budget option for those looking to experience District VIII. The spacious apartments come with a fully equipped kitchen and are within walking distance of many of Budapest's top attractions.

Check availability & best rates

5. Where to stay in Budapest for food lovers & budget travelers: Ferencváros (District IX)

Ferencvaros is another of my absolute favorites when it comes to districts in Budapest. It might not be ideal for your first time in Budapest as it is a little outside the city center, but it's perfect for your second or third visit!

This area is full of great restaurants that specialize in traditional Hungarian cuisine and is also home to some of the city's best street food.

To experience an authentic SoHo atmosphere, explore the area on foot and discover the many cozy cafes, unique bars, and neighborhood eateries. It's one of those places where insider knowledge goes a long way!

Best area for:

• Food lovers

• Budget travelers

• Hipster vibe

Things to see & do in District IX

If you're a first-time visitor, you should make sure to visit the Great Market Hall, which is now officially part of Ferencváros. Although it can be crowded, you can make your way through the ground floor by zigzagging and marveling at the various seasonal fruits, vegetables, and paprika-speckled cold cuts.

The upstairs area is more geared towards tourists and has many vendors selling souvenirs and food stalls. However, it's a good place to grab some lunch or snacks on the go. Definitely get a freshly squeezed juice too!

Best hotels to stay in District IX

($$$) BpR CHIC White Home

The apartment has a terrace with garden views, one bedroom, a living room, a flat-screen TV, a kitchen equipped with a dishwasher and an oven, and one bathroom with a bathtub or shower.

Check availability & best rates

($$) Millenium Apartments

The Millenium Apartments is a great mid-range option for those looking to be close to the foodie hotspots. The apartments come with fully equipped kitchenettes and are within walking distance of the famous Great Market Hall and Ráday Street.

Check availability & best rates

($) Canada Hotel Budapest

The Canada Hotel Budapest is a great budget hotel for those looking to be close to the foodie hotspots.

Check availability & best rates

6. Where to stay in Budapest near Buda Castle: Budavár/Castle District (District I)

The Castle District is situated on the Buda side of Budapest, which is known for being quieter and more historical compared to the other side of the city. It's so much fun exploring the small, winding cobblestone streets and numerous historical buildings.

However, I would usually stay here for just one night to be able to be close to Buda Castle and then pop over to the more lively side of town, Pest!

Best area for:

• Sightseeing

• Art lovers

• Laid-back atmosphere

Things to see & do on the Buda side

The best time to visit is during the day when you can explore main tourist spots such as Budapest Castle, St. Matthias Church, and Fisherman's Bastion. If you want to enjoy the panoramic views of the Pest side of the city, head over to Fisherman's Bastion, located on the banks of the Danube River.

For all the art lovers out there, you should visit the Hungarian National Gallery; it is a great way to gain a better understanding of the local art and cultural history.

Best hotels to stay on the Buda side

($$$) Hotel Clark Budapest

The Hotel Clark Budapest is a luxurious option for those looking to stay in the Castle District. The hotel features elegant and modern rooms with beautiful views of the city.

Check availability & best rates

($$) Hilton Budapest

One of my favorite affordable hotels in the Castle District is the Hilton Budapest. It is a great mid-range option with spacious rooms, and it is within walking distance of the Chain Bridge.

Check availability & best rates

($) Monastery Boutique Hotel Budapest

If you are looking for a place that doesn't break the bank yet still gives you access to the castle area, the Monastery Boutique Hotel Budapest is a great budget-friendly option.

Check availability & best rates

Where to stay in Budapest – Frequently Asked Questions

📍 Should I stay in Buda or Pest in Budapest?

It depends on what you are looking for, but I do have a strong opinion on this! Buda is great for those wanting a more traditional and authentic experience, while Pest has plenty of sights and attractions to explore. For your first stay in Budapest, I would highly recommend staying in Pest.

❓ What’s the best district to stay in Budapest?

Districts VII, VIII, and IX are great for exploring the city, while District I is great for those looking to stay near Buda Castle. My personal favorite, however, is Downtown because it's right in the city center and makes it easy to explore the rest of Budapest.

🚶 How do I get around Budapest, can I walk?

Yes, it is very easy to get around Budapest on foot. The city center is easily walkable, and most sights and attractions are within walking distance of each other. If you want to explore the outer districts, there are plenty of public transportation options available too!

📅 How many days should I stay in Budapest?

Budapest is the perfect destination for a weekend trip! If you're looking to explore the city in depth, three days should be enough to get a good feel for it. For those who just want a glimpse of the city, one or two days are also fine.

✔️ Is Budapest safe?

Yes, Budapest is a very safe city. With that being said, it is always important to be aware of one's surroundings and take extra precautions when traveling in any unfamiliar city.

❌ Where should I avoid staying in Budapest?

It is best to avoid staying in the districts of Angalföld, Óbuda, and Rózsadomb as these are mainly residential areas and may not have many attractions or sights for tourists. Additionally, they can be quite far from the city center and other tourist destinations. It is best to stick with more central places such as Downtown, Districts VII, VIII, and IX, which are closer to attractions and have more to offer for visitors!

🗺 Should I choose Budapest or Prague?

This is a really tough question and one that ultimately comes down to personal preference. Both cities have their own unique charm, sights, attractions, and cultures. If you are looking for a more traditional city with history and an authentic feel, then Budapest is the way to go!

Where to stay in Budapest – Final Words

Budapest is one of my personal favorite cities and an excellent choice for a European city break! Whether you are looking for a luxury stay, an affordable option, or something in between, Budapest has it all. There is something for everyone and plenty to explore on the Buda and Pest sides.

I know that deciding where to stay in Budapest can be tricky, but I hope my guide helped you make your decision easier!