Where to Stay in Budapest: 11 Best Areas and Hotels

I’m going to give you the rundown on what I think are the best areas to stay in Budapest for hotels. I hope this will help you decide where to stay in Budapest when visiting Hungary!

Budapest was formed on the 17th of November 1873, when the three historical cities of Buda, Obuda, and Pest merged, to form the city we know today.

Featuring a rich history and diverse culture, Budapest is the capital and largest city in Hungary, as well as the 9th largest city in the European Union.

All of these facts make Budapest an incredibly popular destination with tourists, however, they make it an equally challenging decision when it comes to selecting where in the city to stay.

So, if you are one of those who wants to make the trip, but feels they need a little guidance, I would strongly suggest reading on.

See more: How Many Days in Budapest is Enough?– 3 Days in Budapest Itinerary

Tips for choosing the best areas to stay in Budapest

Before we jump into the ins and outs of each of my recommended destinations, there are a few things you need to consider. Things that may be deal breakers, which will determine your decision regardless on what else a district has to offer.

For example, if you need to be based near the airport or train station, then I would recommend staying in Jozsefvaros.

If you want to explore the most historic part of the city, then I would recommend Varkerulet, while those who prefer a more modern, vibrant city, would be better suited in Belvaros.

Those who prioritize long days in the great outdoors may like destinations like Angyalfold, while anyone who is all about the nightlife will lean towards a destination like Erzsebetvaros.

These may seem like small considerations at a glance, but ensuring you know where you stand on them before you book can be essential to making your trip as successful as possible.

💖 Best Area:Várkerület (Buda/ District I/ Castle District)
💎 Best luxury hotel:Hilton Budapest 
🏨 Best mid-range hotel:Ékszerdoboz A Budai Vár Alatt
💰 Best budget hotel:Hotel Clark Budapest – Adults Only


📌11 Best Areas to Stay in Budapest

By breaking down each of these best areas, I should be able to give you a much clearer picture of where best for you to stay, to get maximum value and enjoyment out of your vacation.

Best areas to Stay in Budapest Map

To see more detail of where to stay in Budapest Map, go to google map;

1. 💖District I: Buda-Castle District, where to stay in Budapest for first time, sightseeing

Where to Stay in Budapest For Beautiful Castles – Buda Castle

Considering Várkerület is also known as District I, it is perhaps quite apt that it is where we begin our article. The historical section of the Buda region of the city, its name translates to Castle District, which should give you a good idea of what to expect here. 

Its central attraction is the stunning Buda Castle, the home of countless Hungarian kings throughout the ages. While construction on the original building was completed in 1265, much of what you see today was added much later, in the mid 18th-century.

Sitting atop Castle Hill and dominating the city’s skyline, it is surrounded by buildings featuring Baroque, Neoclassical and even Medieval architecture. Within the complex are some of the most iconic attractions in all of the city, including the gothic, 14th-century, Matthias Church, the Fisherman’s Bastion, built to symbolize the chieftains who founded Hungary in 895, and the Sandor Palace, the official home of Hungary’s Prime Ministers and Presidents throughout the years. 

While that alone should be enough to entice history buffs to make a visit, the fact that the castle now houses both the Budapest History Museum and Hungarian National Gallery makes it an absolute must-see attraction.

Connected to both Clark Adam Square and the Szechenyi Chain Bridge by the Castle Hill Funicular railway, you can also enjoy traveling around all of this stunning district, in a unique and entertaining fashion.

You can also explore the Statue of Prince Eugene of Savoy, the Statue of the Independence War, Rudas Turkish Bath, Citadella in Gellert Hill, and the Monument of Gerard of Csanad, the Liberty Statue, the Turul Statue, the Hospital in the Rock Nuclear Bunker, and House of Houdini.

If you have any intention of taking in the rich history and culture of this wonderful city, Varkerulet is unquestionably the best place for you to be.

Stay in Buda if you’re the first-time tourist and want to do a lot of sightseeing, you are interested in the rich history of the city, and historical architecture, you love beautiful castles, museums and galleries, you want to take a ride on a traditional Hungarian train.

Best Hotels in Budapest in Buda:

Best luxury hotel: Hilton Budapest This 5-star hotel is located in the Castle district, close to Fisherman’s Bastion and Matthias Church, Trinity Square, Buda Castle Tunnel. It offers bright and airy rooms with large windows, a sauna and fitness center, an on-site bar and restaurant which serves authentic Hungarian and international flavors.

Best mid-range hotel: Hotel Clark Budapest – Adults Only This 4 -star hotel is situated in Budapest, close to the main tourist attractions. It provides a rich buffet breakfast, air-conditioned rooms with a flat-screen TV, a coffee machine, a private bathroom with free toiletries, and a wardrobe.

Best budget hotel: Ékszerdoboz A Budai Vár Alatt Located within walking distance from Chain Bridge, Matthias Church, and Trinity Square, close to Hungarian National Gallery, Budapest History Museum, and Fisherman’s Bastion.  This apartment offers a flat-screen TV and a private bathroom with a hairdryer, free toiletries and a shower, a fridge, and a kettle.


Check out my virtual tour about the best places to stay in Budapest in this video or continue reading:

Where to stay in Budapest: Best Areas to Stay in Budapest, Hungary

See More:

2. District V: Pest – Belváros – Lipótváros – Downtown Budapest

Where to Stay in Budapest for Shopping –  Elisabeth Bridge

Our next stop brings us to the district of Belváros-Lipótváros, or District V, as it is also known. Its name translates to Inner City-Leopold Town (the word varos can mean city, town and borough), so, as you might expect, this is a region with two distinctly different sides.

We’ll start off with the Belváros (Pest) side, which is essentially the downtown area of the city. This is the best place to come for those looking to enjoy a break filled with days of shopping and sitting in cafes, while your nights are spent in the high-class bars and restaurants the area has to offer. It is home to Váci Street and Fashion Street, perhaps the most famous in all of Hungary, which is a pedestrian area filled with high-end establishments.

If you want to enjoy its class and style but also desire a little more to see on a vacation, attractions such as Chain Bridge, the Inner City Parish Church, and the Evangelical Church On Ferenc Deak Square are just some of the options available in the surrounding area, to ensure your trip offers a diverse range of things to do.

In the Lipotvaros side of the city, the feel changes somewhat, as this is an area less designed for tourists and features a more business-like environment. Home to the Hungarian Parliament Building, this is a place filled with slightly older, less flashy buildings, which will appeal to a more niche audience than the Belvaros side.

Don’t think that means there isn’t still plenty on offer here though. Important buildings, such as the Hungarian Academy Of Sciences, the Supreme Court, the Ministry Of Youth, and the Ministry Of Education can all be found here, making it a perfect choice for those who like their trips to be learning experiences.

These are then offset by a selection of more aesthetically pleasing locations, such as St Stephens Basilica, Gresham Palace, Vigado Concert Hall, Liberty Square, and the Danube Promenade.

You also have the Endre Ady Memorial Museum, the Orthodox Cathedral of Our Lady, the Lion Fountain, and the Petofi Museum of Literature.

On top of all of this, the area also features a wide range of bars, cafes, and restaurants, with notedly lower prices than in the other half of the district, giving you the option to enjoy both days and nights out, without having to constantly worry about how much you’re spending.

When you combine all of these elements together, it should become clear that Belváros-Lipótváros is a multi-faceted destination, which has plenty to offer for visitors with a wide range of interests.

Stay in Pest / District V: Belváros-Lipótváros if you enjoy shopping in high-end stores, you like fine dining, you like a diverse range of sights and activities, you want a learning experience.

Best places to stay in Belváros-Lipótváros:

Best luxury hotel: InterContinental Budapest, an IHG Hotel Set on the banks of the Danube next to the Chain Bridge, within walking distance to the most important sights in Budapest such as St. Stephen’s Basilica, Hungarian Parliament Building, and Citadella. it has elegantly furnished suites and rooms, an indoor pool, an on-site restaurant, and free wifi.

Best mid-range hotel: Prestige Hotel Budapest This 4-star hotel is located in a renovated historic building, within a short stroll from Danube River, Chain Bridge, Christmas Market at St Stephen’s Basilica, and Buda Castle.

Best budget hotel: D8 Hotel This 3-star hotel is located close proximity to Chain Bridge, St. Stephen’s Basilica, and 11 mi from Budapest Ferenc Liszt International Airport.


3. District VII: Erzsébetváros, where to stay in Budapest for nightlife

We move now to our 3rd destination, Budapest’s District VII, Erzsébetváros. Located in the Pest region of the city, this has historically been known as Budapest’s Jewish Quarter.

The crown attraction of the area is the Dohany Street Synagogue. Built in the mid-1800s, featuring a Moorish Revival style architecture, it is the largest functioning synagogue in all of Europe.

Housed within the complex, you will find the Great Synagogue itself, along with the Hero’s Temple, a graveyard, a memorial, and the Jewish Museum. For anyone interested in Jewish history in culture, both here and around the world, this is an absolutely can’t miss attraction.

Despite its main attraction being something so cultured and historic, the other major draw of the area is vastly different, as this is the district to stay in for those looking to enjoy the best nightlife on offer in Budapest.

Featuring bars, restaurants and clubs, that range from cheap and cheerful to more high-end establishments, this is a place that has a huge range of choices when it comes to your evening entertainment, allowing you to eat, drink and dance the night away in a different place every time.

On the off chance you can’t find somewhere to suit your tastes here, don’t worry, as the district borders the sections of the 5th and 6th districts that are the runners up in the nightlife department, meaning you can easily stroll between the three, to ensure you find something that takes your fancy on any given night.

Stay in District VII: Erzsébetváros if you are interested in Jewish history and culture, you are looking for a wide and varied choice of nightlife.

Best hotels in District VII: Erzsébetváros:

Best luxury hotel: Anantara New York Palace Budapest Located right in the heart of Budapest, within walking distance from the Opera and Andrássy Boulevard. You can find the Hop-on Hop-off bus stop in front of the hotel.

Best mid-range hotel: Hotel Memories Budapest Located just a few steps from Dohány Street Synagogue, close to Deak Ferenc Square metro station, and St. Stephen’s Basilica.

Best budget hotel: Roombach Hotel Budapest Center Fantastic hotel with good location. Close proximity to an underground station, Deák Ferenc Square, the Vaci Street, and the Chain Bridge.


4. District VIII: Józsefváros – the Palace District

Our final destination sees us in the District VIII of Józsefváros. Of all the districts in Budapest, perhaps none have as many faces as this, with the section located in the center of the city being the grand Palace District, with the outer reaching areas gradually going downhill the further out you go.

With that in mind, let’s first focus on that central region, where attractions such as the National Museum, the Metropolitan Ervin Szabo Library, and the Academy Of Drama And Film are surrounded by a wonderful collection of bars, restaurants, and hotels, to keep you entertained day and night.

While I would suggest staying in the more central part of the district, for those who would like to explore it in its entirety, there is still plenty of attractions awaiting. 

The Erkel Theatre; a Hungarian State Opera House, Orczy-Kert; one of Budapest’s biggest gardens, The Centre For Foreign Languages; Hungary’s oldest authentic language examination center, as well as the Hungarian Natural History Museum and Corvin Budapest Film Palace are all located here.

You also have the Dandár Gyógyfürdő Spa, the Martsa Műterem és Művészkert, the Holocaust Memorial Centre, the Flag Museum, and the József Attila Memorial.

On top of all of that, this district is also home to a large collection of universities. Not only are many of these stunning buildings to view in themselves but they also bring with them a distinctively student culture and environment. This is perfect for those looking for a livelier environment that’s attainable on a budget.

As a final parting gift, it is also the location of Budapest’s main train station, making it the perfect place to stay for anyone traveling by train, who doesn’t want to worry about dragging their luggage too far at the beginning and end of their trip.

Stay in District VIII: Józsefváros if you want to be near the airport or train station, you are happy to explore more “rough and ready” areas, you want a great variety of bars and restaurants.

Best hotels in District VIII: Józsefváros:

Impulso Fashion Hotel Centrally located in Budapest, this 4-star hotel is close to II János Pál Pápa Tér, there is a subway stop nearby connect to Keleti Train Station.

Courtyard by Marriott Budapest City Center Located conveniently in the center, you can reach most sights by foot such as Dohany Street Synagogue, Keleti Train Station, and Central Market Hall.


5. District VI: Terézváros, where to stay in Budapest on a budget

District VI: Terézváros, where to stay in Budapest on a budget

This is a trendy neighborhood in Budapest and nowhere demonstrates that more than iconic Andrassy Avenue or the Champs-Élysées of Budapest. The fashion shops are renowned while the Neo-Renaissance palaces ooze real style. This is an avenue that those on a budget can visit, just window shop and not look for accommodation.

You can also check out the oldest station in Hungary Nyugati Train Station, and Hungarian State Opera.

The district does have little for the budget traveler but in general, it is a place where the rich can rent large apartments and enjoy the activities in the immediate vicinity. That includes some bars that open in the afternoon and serve until very late.

Other attractions include the most famous thermal baths in Budapest- Szechenyi Baths, Heroes Square, the Budapest Puppet Theater, Vajdahunyad Castle,  the House of Terror Museum, and several museums such as the Postal Museum, the Hungarian Electrotechnical Museum, and the Zoltán Kodály Memorial Museum.

Stay in District VI: Terézváros if you want to stay in budget-friendly area, you want plenty of activities and attractions nearby.

Best hotels in Terézváros:

  • Opera Garden Hotel & Apartments Thi Budapest hotel is set in a pedestrian street in the center of Budapest, overlooks Basilica, within walking distance from Opera House and Andrássy Street, and Hungarian State Opera House.
  • T62 Hotel This budget hotel has an excellent location, close proximity to historical landmark such as House of Terror, and St. Stephen’s Basilica.

6. District IX: Ferencváros, staying close to the Danube

District IX: Ferencváros, staying close to the Danube

Ferencvaros is one of Hungary’s most famous football teams. It is also an ever-growing area in Budapest and a very diverse one. It runs next to the Danube and the Expo ’96 site is here. A good deal of renovation has been needed to address local problems and that is ongoing work.

Budget travelers are certain to find something that they like here while the added appeal are the cultural experiences on offer. They include museums, theatres, and other concert venues. The National Theatre is on the Danube on the Pest side, close to the Rákóczi Bridge. 

The Palace of Arts was added in 2005 with the Ludwig Contemporary Arts Museum and the National Concert Hall on its grounds. The promenade along the Danube and the Great Market Hall or Central Market Hall are other attractions to enjoy.

Stay in District IX: Ferencváros if You want to be close to the Danube; The arts are of interest to you; Budget accommodation is your idea.

Best hotels in Ferencváros:

  • The Three Corners Lifestyle Hotel This mid-range Budapest hotel is located in the right heart of Budapest within a few minutes’ walk from famous Raday street, and Gellért Thermal Baths.
  • Ibis Styles Budapest City This is a budget hotel, located close proximity to Hungarian National Theater, and the Gellért Thermal Baths.

7. Kelenfold, a residential area with vibrant nightlife

Kelenfold is on the Buda side of the city and its appeal includes lovely views of the Danube. It developed as a residential area in the 1970s in a place that lacked the rich history of other parts of Hungary’s capital.  Its design perhaps lacks style and imagination but forget that for a while.

Despite being residential, it has a vibrant nightlife and in the weeks of summer, there is outdoor music for both locals and visitors to enjoy. The Botanic Garden Buda is a restful place with clean air and plenty of attractive fauna.  Other attractions include Szent Gellert Church, the Savoya Park Shopping Mall, and the Kopaszi gát Park.

You will find good budget accommodation here and surprisingly good cuisine as well.

Stay in Kelenfold if You are looking for budget accommodation; Relaxing in green spaces interests you; You are not concerned about a central location near Budapest’s main landmarks.

Best places to stay near Kelenfold station:


8. District III: Óbuda-Békásmegyer, where to stay in Budapest for families

Where to Stay in Budapest –  Obuda

While many people are aware of Budapest being formed by the joining of the cities of Buda and Pest, the third city involved in the merger, Obuda, is often overlooked.

As you may have gathered from its name, the modern-day District III now encompasses the old city of Óbuda and offers history and culture that differs from the rest of Budapest.

Having been settled as early as the stone age, the region even served as the capital of the Roman province of Pannonia. While many of the actual remains of the city are now, unfortunately, obscured, there are still plenty of places to find out about the history of Obuda.

The Aquincum Museum contains displays demonstrating the lives of the Roman people that once lived here, surrounded by ruins of the towns they inhabited, complete with shrines, sculptures, columns, buildings, and even a sarcophagus.

The Kassak Museum displays exhibits relating to the Hungarian writer Lajos Kassak. The Óbuda Museum is dedicated to the local history of the area, complete with Hungary’s only Toy Museum and one dedicated to folk furniture. There’s even the Museum of Hungarian Trade And Tourism, as well as the Vasarely art museum, dedicated to his works, as well as those of a few other local artists.

Don’t fret if museums aren’t your thing though, as while I said many of the area’s ruins are obscured, there are still a number of Roman amphitheaters, baths, and even a villa scattered around.

On top of all of this history, we still have the main attraction to get to, as the stunning Hajogyari Island, also known as Obuda Island, is located here, in the middle of the Danube River.

Connected to the mainland by multiple bridges, the island features farms, parks and even a yacht yard, making it one of the most popular attractions in the city for those looking to get away from the concrete jungle for a while. It is even the home of the Sziget Festival each year, one of the largest music and cultural festivals in Europe.

Stay in District III: Óbuda-Békásmegyer if you are interested in Roman ruins and history, you enjoy getting back to nature, you like festivals, experience a more unique culture.

Best places to stay in District III: Óbuda-Békásmegyer:

Best mid-range hotel: Aquamarina Hotel Set on the bank of Danube River, there the boast from hotel to city center, and Parliament Stations. The main tourist attractions like Acquincum ruins, Szentendre, or the Danube Bend with the cities Visegrád and Esztergom are easily reachable.

Best budget hotel:  Alfréd Panzió Good location hotel can reach the city centre easily by public transport, and within a short stroll from Danube banks.


9. District XXI: kerület-Csepel, a laid-back location in Budapest

From one island to another, we move to the 21st district of Csepel, which is located on the northern end of Csepel Island, the largest island in the Danube. It also holds the distinction of being the only entire district that is at no point located in either of the historical areas covered by Buda or Pest.

Perhaps not as abundant with attractions as some of the other locations on this list, it does provide a history and experience that differs from the rest of the city, while offering visitors the chance to enjoy their stay in a slightly more relaxed, less built-up environment.

Largely featuring a more middle class, suburban environment, sights such as a number of gardens, an 18th century Baroque parish church, the Csepel Gallery And Museum Of Local History, the Csepel Collection Of Factory History, and even the home stadium of Csepel FC, the Beke Teri Stadion, are among the more popular attractions in the district.

Connected to the mainland by a number of bike tracks, bridges, and railway lines, this makes it the perfect spot to enjoy the quiet life, while being able to quickly jump back into the hustle and bustle of the heart of the city whenever you choose.

Stay in XXI. kerület if you want a more laid-back location, you want a unique experience, you like river views, you want quiet accommodation that has easy access back into the city.

Best places to stay in XXI. kerület:

  • B12 Apartment Budapest Located in Csepel district, a short drive from Pesterzsébet Bath, Great Market Hall, and Gellért Thermal Baths.
  • Anita This beachfront accommodation is situated with in short driving distance from Pesterzsébet Bath, and Hungarian National Museum.

10. District XIII: Angyalföld, a beautiful river views area in Budapest

Where to Stay in Budapest – Art Nouveau

The penultimate option on our list is located in the District XIII of Angyalföld. While much of the district is a working-class area, this allows it to offer incredible value when it comes to both accommodations, as well as the prices in the surrounding shops.

However, the price isn’t the reason for this location making the list. Instead, it is an attraction somewhat similar in nature to our previous two entries.

Completing the set of three Danube islands located within Budapest, Angyalföld is the location of Margaret Island, one of the most popular recreational destinations in the city.

Covered largely by beautiful landscape parks and Roman ruins, the island is ideal for those who like outdoor locations. However, it also features a number of shops and restaurants, allowing you to enjoy the rural charms, while still being just seconds away from civilization when you want it.

Among its attractions are a Centennial memorial celebrating the unification of the city, a Japanese garden and fish pond, a zoo featuring exotic waterfowl and other animals, a pavilion designed for open-air concerts, a fountain with music and light displays, and an Art Nouveau water tower, the last two of which are both protected UNESCO World Heritage sites.

There are even two hotels located on the island itself and, with no private traffic allowed, this gives you the opportunity to completely immerse yourself in the environment.

Stay in District XIII: Angyalföld if you prefer a less built-up location, you enjoy walking in parks, you like zoos, you want to take in some beautiful river views, you are interested in roman ruins.

Best places to stay in District XIII: Angyalföld:

  • Ensana Thermal Margaret Island Set in a quiet Margaret Island, offers an indoor and outdoor swimming pool with free wifi. Close proximity to Japanese Garden, and Lukács Bath.
  • Danubius Hotel Helia Located right on the bank of the Danube river, with rooms that overlook the river, Buda hill.

11. Staying around Budapest Airport

Budapest Airport (BUD) is located 20km from the city center, if you have an arrival late or early departure, staying near the airport is a good choice. Below are the best hotels near Budapest Airport:

Best luxury hotel: Airport Hotel Budapest This 4-star hotel offers fine cuisine in its 24-h restaurant, free parking, a 24-hour wellness center, and free WiFi. it offers a free airport shuttle bus and is just a short drive from the airport.

Best mid-range hotel: Airport Almáskert Panzió Thi bed and breakfast offers units with a private bathroom, air conditioning, a flat-screen TV, and a fridge. it also has an ironing service, business facilities like fax and photocopying.

Best budget hotel: Airport16 bed and breakfast This B&B offers accommodations fully equipped private bathroom with shower and a hairdryer, free WiFi, air conditioning, a bar, and a shared lounge. It also has continental and buffet breakfast options, a barbecue, garden and sun terrace.

So, there you have it, our article on where to stay in Budapest. Hopefully, this will have given you a clear idea of exactly what you want to get out or your trip and where the best place to stay in order to achieve that is.

Now, all that’s left to do is go and start getting everything booked, so you can experience all the wonders I have mentioned for yourself.

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