Hungary’s capital city is one of the most beautiful cities in Europe. Budapest is split into Buda and Pest by the Danube River, with several elegant bridges spanning the river.
The grand Buda Castle overlooks the river, and the nighttime view graces many postcards as it’s so picturesque. Visitors come to Budapest for many reasons, including the thermal baths for soaking, and affordable prices compared to other European destinations.
Budapest is a great city for walking, but there are also many public transportation options available, including the Metro, trams and ferries. However, deciding where to stay in Budapest is an important factor in planning your visit.
To help you find the best Budapest accommodation for your tastes, we’ve sorted out the best Budapest neighborhoods to help you find the best hotel in Budapest. Budapest districts are numbered, starting from I in the center and going clockwise for the most part.
We will cover off all types of Budapest accommodation options from Hostels to luxury Budapest hotels as well as how to decide where to stay in Budapest Hungary 2024.
This guide shows off the best Budapest hotels, best places in Budapest to visit, the best places to stay in Budapest, hotels near Budapest attractions, Budapest neighborhood guide and many more.
Wondering where is the best place to stay in Budapest? Below are 9 of the best neighborhoods in Budapest to help you make the right decision when trying to work out best side of Budapest to stay for you. We have tried to make the guide as easy to follow as possible.
We have also included some things to do or places to visit as well as some eatery suggestions of either our favourite places or some funky places to eat at within the areas in Budapest so you can use this as a go to guide to pick the best accommodation in Budapest for you.
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The Castle District (District I) – where to stay in budapest for first time visitors
Wondering where is best to stay in Budapest? For first-time visitors, or those researching where to stay in Budapest for families, the Castle District (Várkerület) is the best area to stay in Budapest.
Many of the major things to do in Budapest are located here, and there are grand views of Pest across the river. You’ll have easy access to the famous Chain Bridge, which is a prime photography destination in Budapest.
There are many restaurants, shops and attractions in District I, but it is quieter at night, which makes it a great choice for families. It is not the best area to stay in Budapest for nightlife, however, as the majority of nightlife can be found on the Pest side of the river.
The Castle District is the perfect place for first-time visitors to Budapest to stay. Located in the First District of Budapest, this area is filled with iconic attractions.
Fisherman’s Bastion, Buda Castle, the Church of the Assumption of the Buda Castle, Várkert Bazár and Hospital in the Rock are all must-see spots.
Fisherman’s Bastion is an ornate building which provides spectacular views of Budapest while Buda Castle dates back centuries and houses several museums and galleries.
The Church of the Assumption of the Buda Castle is a stunning religious building with intricate stonework and beautiful stained glass windows.
Meanwhile, Várkert Bazár is a castle garden complex filled with sculptures and fascinating sights while Hospital in the Rock was once a secret underground hospital during World War II.
Staying or visiting these attractions in Budapest will provide an unforgettable experience for any first time traveler.
Best places to stay in Castle District
Cheapest Backpacking Hostels in Castle District
Budget accommodation in Castle District
Mid range accommodation in Castle District
- Maison Bistro & Hotel
- Buda Castle Hotel Budapest
- Boutique Hotel Victoria Budapest
- Mercure Budapest Castle Hill
Family Friendly accommodation in Castle District
Affordable Luxury accommodation in Castle District
Belváros (District V) – Best place to stay in Budapest for tourists
At the other end of the Chain Bridge, across from District I, is the Pest district of Belváros. This could also be argued as the best place to stay in Budapest for families and first-time visitors, as the central location puts everything in easy walking distance.
Foodies and souvenir hunters will love Central Market Hall, Budapest’s oldest and largest indoor market. The Hungarian Parliament Building fronts the river in this district, and is the third largest Parliament building in the world.
Inner City, or Belváros, provides the most exciting places for tourists to stay in Budapest. Vigadó Concert Hall is a must-see cultural landmark; it hosts some of the best classical concerts in Europe.
Gerbeaud Cafe is a fantastic place to enjoy traditional Hungarian pastries and cakes – be sure to try the famous Dobos Torte!
Boutique stores around Váci and Deák Ferenc Streets offer unique shopping experiences and luxury hotels line the banks of the Danube. For fine dining, Deák Ferenc Square has some great restaurants offering delicious food.
Whichever way you choose to experience Inner City, there’s something for everyone at Belváros!
Best places to stay in belváros budapest
Cheapest Backpacking Hostels in Belváros
Budget accommodation in Belváros
Mid range accommodation in Belváros
- Barceló Budapest
- Gerlóczy Boutique Hotel
- Arcadia Hotel Budapest
- Leonardo Boutique Hotel Budapest M-Square
Family Friendly accommodation in Belváros
Affordable Luxury accommodation in Belváros
- Kempinski Hotel Corvinus Budapest
- The Ritz-Carlton, Budapest
- Párisi Udvar Hotel Budapest, part of Hyat
- InterContinental Budapest, an IHG Hotel
Lipótváros (District V) – Where to stay in Budapest for Foodies
Lipótváros is a must-see for all foodies and culinary travelers. It’s home to the Hungarian Parliament, grand boulevards lined with neo-Gothic and art nouveau buildings, and Szabadság Square.
Within its boundaries, you’ll find multiple cafes and fine-dining restaurants as well as high-end bars and clubs. And no visit to Lipótváros would be complete without a trip to St. Stephen’s Basilica, the stunning Neo-Classical church that stands on the Pest side of Budapest’s Danube riverbank.
From hole-in-the wall eateries to Michelin star restaurants, Lipótváros has something for every type of foodie or traveler.
Whether you’re looking for an intimate dinner for two or want to sample some of Hungary’s local dishes in a traditional setting, you won’t be disappointed by what Lipótváros, the 5th District Budapest has to offer!
Best places to stay in Lipótváros
Cheapest Backpacking Hostels in Lipótváros
Budget accommodation in Lipótváros
Mid range accommodation in Lipótváros
Family Friendly accommodation in Lipótváros
Affordable Luxury accommodation in Lipótváros
- Hard Rock Hotel Budapest
- Áurea Ana Palace by Eurostars Hotel Company
- Aria Hotel Budapest by Library Hotel Collection
- Four Seasons Hotel Gresham Palace Budapest
Józsefváros (district viii) – Where to stay in Budapest on a budget
Józsefváros has in recent years become a cool place to stay in Budapest. It is just east of the inner city district, and close to the attractions of District V.
In addition to the Hungarian National Museum, this is where you’ll find many of the ruin bars that Budapest is famous for.
It’s a very lively neighborhood, popular with younger residents and visitors, which also means it is the best neighborhood to stay in Budapest for budget travelers.
In addition to several hotels and hostels, there are some cool apartment rentals in this Budapest district.
Józsefváros is the perfect area for budget travellers. With its Natural History Museum, Leafy Orczy Garden, stylish local and international eateries, there’s something for everyone to enjoy.
Plus, the indoor Rákóczi Market Hall offers up plenty of fresh produce and street food stalls to keep even the strictest budgets in check.
So whether you’re seeking cultural experiences or cheap eats, Józsefváros Budapest can offer the best of both worlds!
Best places to stay in Józsefváros
Cheapest Backpacking Hostels in Józsefváros
Budget accommodation in Józsefváros
- Dean’s College Hotel
- Ibis Budapest Centrum
- Cedar Inn Budapest – Palace District
- Boulevard City Panzió – self check-in
Mid range accommodation in Józsefváros
Family Friendly accommodation in Józsefváros
Affordable Luxury accommodation in Józsefváros
Erzsébetváros (district vii) – Where to stay in Budapest for nightlife
Budapest’s historic Jewish quarter is now one of the liveliest areas of the city. By day, visitors can explore several historic sites of Budapest, including interesting and the largest synagogue in Europe. Erzsébetváros has some of the best street art in Europe, as well.
But nighttime is when this Budapest district really comes alive. Between amazing street food, Budapest’s first ruin bar, and trendy boutiques, Erzsébetváros is a great place to stay in Budapest for a more local feel, with plenty of entertainment options.
Erzsébetváros Budapest is a great place for young travelers who want to experience nightlife and explore the area. Its rich Jewish history gives it an interesting vibe, while its trendy locals hanging out in ruin pubs like Szimpla Kert make it contemporary and edgy.
The district’s unique design shops, street art and casual eateries give visitors plenty of options for having a good time. Whether you’re looking for some late-night fun or a relaxed hangout with friends, Erzsébetváros has something for everyone.
With its diverse offerings, this vibrant neighborhood will make your visit to Budapest one to remember!
Best places to stay in Erzsébetváros
Cheapest Backpacking Hostels in Erzsébetváros
Budget accommodation in Erzsébetváros
Mid range accommodation in Erzsébetváros
Family Friendly accommodation in Erzsébetváros
Affordable Luxury accommodation in Erzsébetváros
- Anantara New York Palace Budapest
- Corinthia Budapest
- Queen’s Court Hotel & Residence
- Mystery Hotel Budapest
Terézváros (District VI) – Where to stay in Budapest for backpackers
Another great place to stay in Budapest for budget travelers is the 6th district, Terézváros. Just east of District V, Terézváros has a fun mix of history and culture that anyone can enjoy.
Budapest’s famous House of Terror Museum is here, as is the State Opera House and Városliget, one of the largest parks in Budapest.
Andrassy Avenue is a must-see for any visitor to Budapest. This UNESCO World Heritage Site is connects the city center to Városliget and is lined with Neo-Renaissance palaces and private homes.
Terézváros Budapest is one of the best areas to stay when visiting the city. In addition to being home to a number of backpacker hostels, it also boasts some incredible sights and attractions.
For example, along Nagymező Street, which is known as Budapest’s Broadway, you can find the Hungarian State Opera and other theaters. Meanwhile, Andrássy Avenue leads to Heroes’ Square and is lined with designer shops, restaurants and cafes.
Food vendors and hip bars can be found around Oktogon intersection and Király Street. But Terézváros isn’t only about its entertainment – visitors can also learn more about Hungary’s dark past at the House of Terror museum, where exhibitions focus on 20th-century history.
Best places to stay in Terézváros
Cheapest Backpacking Hostels in Terézváros
Budget accommodation in Terézváros
Mid range accommodation in Terézváros
Family Friendly accommodation in Terézváros
Újlipótváros (District XIII) – Where to stay in Budapest with family
The most northern Budapest district is District XIII, comprised of two sections. Újlipótváros is inside the ring road, and feels much like the city center,.
The many parks in this region make it a great place to stay in Budapest with kids, and Margaret Island in the Danube is also included in this region.
The island is home to a water park, sports pool, musical fountain, a zoo and gardens, so it’s a wonderful place to spend a day in Budapest. There are many trendy bars and cafes to choose from as well.
Újlipótváros Budapest offers family travellers plenty of options for a great stay in the city. Not only are there many street-lined bookstores, galleries, and sidewalk cafes to explore, but Szent István park is a great destination too.
This park is surrounded by Bauhaus-style modernist apartments and gives you beautiful views of Margaret Island and beyond. It’s also the perfect spot to relax and enjoy the outdoors.
If you’re looking for something more interactive, Flippermúzeum has over 100 vintage pinball machines that you can play while getting acquainted with the city. They provide an excellent way to have fun with your family during your travels.
Best places to stay in Újlipótváros
Cheapest Backpacking Hostels in Újlipótváros
Budget accommodation in Újlipótváros
Mid range accommodation in Újlipótváros
- Fortuna Boat Hotel Budapest
- Four Points by Sheraton Budapest Danube
- Bohome Budapest
- Hello Downtown Apartment – Eiffel
Family Friendly accommodation in Újlipótváros
- Marmara Hotel Budapest
- Crowne Plaza Budapest, an IHG Hotel
- Adina Apartment Hotel Budapest
- DanubeGreen bright two bedroom apartment near Margaret Island
Angyalföld (District XIII) – Where to stay in Budapest like a local
Urban Angyalföld is a bustling neighbourhood where the enormous Duna Plaza mall, home to shops, eateries, and the Cinema City multiplex, is located.
Local restaurants include curry houses, noodle shops, and sushi bars. Vasas SC’s soccer team plays at Illovszky Rudolf Stadion, while Angyalföld Sport Centrum provides a variety of sporting amenities. There are interactive train exhibits at the Hungarian Railway Museum.
Travellers to Angyalföld can also explore the nearby Margaret Island. The island, located in the middle of the Danube River, is accessible by bridge from Pest side of Budapest and is home to many parks, gardens, a music fountain and thermal baths.
The picturesque scenery of Margaret Island provides a peaceful atmosphere for visitors who want to take a break from sightseeing and relax.
There are plenty of activities on offer including cycling paths, boat rental services and an amusement park. The island is also known for its variety of flora and fauna, which makes it perfect for nature lovers or birdwatchers.
Best places to stay in Angyalföld
Budget accommodation in Angyalföld
Mid range accommodation in Angyalföld
Family Friendly accommodation in Angyalföld
Ferencváros (District IX) – Cool places to stay in Budapest
One of Budapest’s up-and-coming neighborhoods, Ferencváros is south of the inner city and home to the Corvinus University of Budapest.
The riverfront promenade here is well worth a stroll, as it’s less crowded than other popular Budapest districts, but nevertheless very scenic, with many attractions along the way.
Some of Budapest’s best museums are here, including the Ludwig Museum of Contemporary Art, and the Budapest Music Center. The craft beer scene in Ferencváros is blowing up, making this a great spot to fritter away an afternoon.
Best places to stay in Ferencváros
Cheapest Backpacking Hostels in Ferencváros
Budget accommodation in Ferencváros
Mid range accommodation in Ferencváros
- Riverside Balcony Apartment with view to Danube
- Nehru Apartment
- Actor Hotel Budapest
- Dunapest Apartman
Family Friendly accommodation in Ferencváros
- Ibis Styles Budapest City
- Sweet Home at the Danube with wellness
- Corvin Hotel Budapest Sissi Wing
- The Old Mill Budapest
Top 5 favorites accommodation options for Budapest
|❤️ Best Area first timers||Castle District (Várkerület)|
|💸 Best Luxury Hotel||InterContinental Budapest, an IHG Hotel|
|👪 Best Hotel for For Families||Marmara Hotel Budapest|
|🏨 Best Mid-Range Hotel||Maison Bistro & Hotel|
|🛏️ Best Budget Hotel||Dean’s College Hotel|
|✨ Best Hostel||Flow Spaces|
Read more on Budapest:
- 13 Things to do in Budapest
- 48 hours in Budapest – 2 Day Itinerary
- 3 Day Itinerary for Budapest
- Best Day Trips from Budapest
- Budget Guide to Budapest
- The Ultimate Guide to Budapest
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