Where to Stay in Budapest: 5 Best Areas & Hotels!

The many great places for where to stay in Budapest make a city trip to the Hungarian capital an unforgettable experience! Whether you are a couple, a backpacker, a family with children or a group of young people, everyone will find the perfect accommodation in this cool city. Most of the possibilities are private apartments, but of course, you can also find a great selection of fabulous hotels as well as charming guesthouses and cheap places to stay like backpacker hostels. However, there are 23 different districts in the city, so the first question to ask is where is the best area to stay in Budapest. Some neighborhoods are especially recommended for sightseeing, shopping, and nightlife due to their central location. But what are the best areas in Budapest, and where can you find the most beautiful accommodations as well as hotels for a city trip?

In this travel guide, we will show you the best places to stay as well as the best accommodations in Budapest. You will also find useful tips and recommendations that are guaranteed to help you plan your trip.

Good to know!

Budapest used to consist of two cities, Buda and Pest, which were divided by the Danube. The most accommodations are on the Pest side, but there’s also a good selection on the Buda side at the Castle District.

If you are planning an exceptional or romantic vacation, then here you will find here the most stunning boutique hotels in Budapest summarized at a glance.

The best neighborhood for nightlife in Budapest is undoubtedly the Jewish Quarter in the 7th district. A special feature there are the ruin bars, which have almost become a landmark of the Budapest bar scene.

Budapest is a thermal city, which is great if you want to combine sightseeing with relaxing in a thermal bath. The Szechenyi thermal baths and the Gellért bath are especially famous.


Downtown (BELVAROS-LIPOTVAROS) – Parliament & Stephen’s Basilica

The Belvaros-Lipotvaros neighborhood is the V district of the city and forms the actual downtown of Budapest. This area is located on the east bank of the Danube River and is a fabulous choice for a city break. Staying here is especially central, so you can often reach the city’s most interesting places on foot. Also, some of the best things to do in Budapest such as visiting the Parliament, St. Stephen’s Basilica, and several museums, can be seen right here in the V District. Fabulous shopping opportunities are also available, and there are cool bars and numerous restaurants to enjoy.

In the Belvaros-Lipotvaros district you’ll find some of the absolute best places to stay in Budapest. Prices are a bit more expensive than in the outer districts, but you enjoy the benefit of being right in the middle of the center. Fabulous is also the selection of good 5-star hotels, which are just perfect for an exceptional stay in Budapest.

Best Accommodations & Hotels:

  • 5-Star Hotel: The Four Seasons Gresham Palace is a fantastic hotel in Budapest. The best location, luxurious ambience and the view of the castle make a city trip perfect.
  • Great Apartment: The Supreme City Center Apartment is a great choice for families! It is located in a historic, old townhouse with a courtyard, but thrills with fabulous furnishings.
  • 4-Star Hotel: The Hotel Vision is a real insider tip. This hotel scores with great facilities, modern ambience, fabulous location and free parking in the underground garage!

Castle District (VÁRKERÜLET) – Fisherman’s Bastion & Castle Palace

The Castle District (Várkerület) is the I district of Budapest. This unbelievable picturesque neighborhood is located on the Buda side, on the western bank of the Danube, and stretches from the Chain Bridge up to the Castle Palace. An accommodation in this area is the perfect choice if you want to stay right in the historical heart of Budapest. Here you will find numerous imposing buildings and sights, such as the world-famous Fisherman’s Bastion, the Castle Palace and the Castle Hill Funicular. From the top of the Castle District, the city is practically at your feet, and you can enjoy a spectacular view of Budapest.

The I District is one of the most beautiful and safest areas of the city, with charming streets and excellent restaurants and cafés. Of course, there is a great selection of amazing accommodations. Some are even the best places to stay in Budapest. From private vacation rentals to chic boutique hotels, you’ll find it here.

Best Accommodations & Hotels:

  • Boutique Hotel: The Hotel Clark Budapest – Adults Only is an insider tip! This hotel is really stylish and modern, with view of the Chain Bridge and the cool rooftop bar is also brilliant.
  • Vacation Apartment with Parking: The Buda Smile Apartment is a terrific place to stay when traveling to Budapest. Guests love the fabulous location, cleanliness and free parking.
  • Charming Hotel: The Maison Bistro & Hotel is a very nice, small hotel, equipped with a lot of attention to detail and in the best location. The breakfast is also a real highlight!

Jewish Quarter (ERZSEBETVAROS) – Nightlife & Great Synagogue

Erzsebetvaros neighborhood, better known as the Jewish Quarter, is one of the absolute best places for nightlife in Budapest. If you appreciate a lively bar scene as well as good restaurants and, moreover, you like to live centrally, then this neighborhood is an optimal choice for suitable accommodation in Budapest! The city center can be reached either on foot or quickly by public transport, which is really convenient. In addition, you can enjoy numerous regional and also inexpensive restaurants and cafés to try. It gets really lively in the evening, when the hip ruin bars open and young and old go out. In addition, there are great clubs in this iconic scene district, which open until the early hours of the morning.

The hip Jewish Quarter offers apartments and vacation rentals in every price range, as well as many affordable hostels perfect for backpackers. This area is ideal for those who like to go out at night and stay in one of the coolest neighborhoods in the city center.

Best Accommodations & Hotels:

  • 3-Star Hotel: The Roombach Hotel Budapest Center is a terrific place to stay in Budapest! Plus, the breakfast is delicious, the location is excellent, and the staff is friendly.
  • Charming Apartments: The Vagabond Broadway offers beautiful apartments at a fabulous value. Guests love the stylish decor, and paid parking is offered.
  • Cool Hostel: The Hostel One Budapest is a budget place for backpackers. It’s very centrally located, within the Jewish Quarter, and great bars, restaurants, and cafés are nearby.

Palace Quarter (JOZSEFVAROS) – Great Market Hall & Museums

The Palace Quarter is a brilliant choice for staying in Budapest. Once a poor working-class neighborhood, today you’ll find many beautifully renovated buildings dating back to the 18th and 19th centuries. Some of the buildings are now luxury villas and expensive apartments, however there is also an older section of houses in the neighborhood. Jozsefvaros is also home to a few attractions, such as the National Museum and the Metropolitan Ervin Szabó Library. The famous Great Market Hall is also not far from here and can be easily reached by a walk!

In the Palace District, you can find a cool mix of different accommodations. From posh hotels to budget accommodations, it’s all here. The location is also good, and you can quickly explore the center on foot and by public transport.

Best Accommodations & Hotels:

  • Boutique Hotel: The Hotel Memories OldTown is a very chic 4-star hotel with a sensational breakfast buffet and spa area. The location is also great for exploring the city.
  • Lovely Apartment: The Museum View Apartment is directly across the street from the Hungarian National Museum and delights with cleanliness and fabulous views.
  • Vacation Apartments: The wonderfully pretty Harmonia Palace is in a 19th-century neo-Renaissance building and has several apartments of different sizes at once.

6th District of Budapest (Terézváros) – Heroes’ Square & Szecheny Bath

The 6th district in Budapest is a very quiet residential area and is located near the green city park. The district stretches from the edge of the city center up to Heroes’ Square and offers a great selection of good places for where to stay in Budapest. Thanks to the good metro and tram connections, you can also quickly get to the most important places and sights of the city from here. Not far away is the famous Szecheny Bath, which is located directly in the green city park, and can be reached from the 6th district in a short time.

There are some really hip hotels in Terézváros. Modern apartments and studios are also available. The prices in this area are often a bit cheaper, and you can easily get from your accommodation to the center of Budapest by public transport.

Best Accommodations & Hotels:

  • 4-Star Hotel: The Alice Hotel is a real insider tip. Here, the modern design in a historic city villa, the quiet location, the good price and the breakfast on the terrace will delight you.
  • Beautiful Apartment: The Andrassy Garden Apt in Center is a clean, beautiful apartment and only just a few minutes from the metro station away.
  • Lovely Guesthouse: The Platanus Guesthouse is a small pension in a good location. Here is the interior and the quiet location in an old apartment block scores.

Find the best accommodation in Budapest:


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