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, 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.
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The Castle District (District I) – Where to stay in Budapest for first timers
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.
Best places to stay 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.
Best places to stay in Belváros
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.
Best places to stay 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.
Best places to stay in Erzsébetváros
Cheapest Backpacking Hostels in Erzsébetváros:
Budget Hotels in Erzsébetváros:
Family Friendly Hotels in Erzsébetváros:
Szentmihalyi 22 Apartman
Affordable Luxury Hotels in Erzsébetváros:
Vitta Hotel Superior 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.
Best places to stay in Terézváros
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
Újlipótváros and Angyalföld (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, while Angyalföld is a more residential, working-class area. 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.