Best Places to Stay in Budapest

The best places to stay in Budapest are the V, VI and VII is district. In this post we will analyze what each one of these districts has to offer

If you are looking for the best places to stay in Budapest, this guide will explain thoroughly the most convenient districts of the Hungarian capital. Regardless of the purpose of your trip, Budapest offers attractions for all tastes, with its unique history, delicious eateries and busy nightlife.

best areas to stay in Budapest

Tourism in Budapest: Overview

Budapest is one of the most visited cities in Europe. Divided by the Danube in Buda, to the west and Pest to the east, the Hungarian capital offers various attractions to all kinds of budgets. Hungary has a prime location, right in the middle of Europe, tourists visiting Budapest often visit Vienna and Prague, easily accessible by train.

The city’s airport is also showing strong growth in recent years, mostly due to the boom of low cost airlines in Europe. If you are arriving by air check our guide on how to get from the Budapest Airport to the city center.

During the past two decades, tourism in Budapest has improved significantly. With the fall of communism, one of the most beautiful cities in Europe regained its prestige and receive more tourists every year.

Budapest is known for its diverse architecture, with a number of different styles seen in historical buildings throughout the city. Since 1987, Budapest is a UNESCO World Heritage Site. If you are a history enthusiast, Budapest will certainly not let you down.

Other than that, Budapest has one of the best nightlife in the world. There are restaurants for every taste, with the best dishes of Hungarian and International cuisine available day and night.

Budapest also has amazing clubs and its famous for its ruin bars, located mostly in the VII district. Among them, the famous Szimpla Kert ruin bar, a must visit place if you want to see the Hungarian nightlife.

Best Places to Stay in Budapest

Budapest is divided by the river Danube and separated into 23 districts (kerület). The best places to stay in Budapest are District I (Várkerület), District V (Belváros-Lipótváros), District VI (Terézváros) and District VII (Erzsébetváros).

District I – Várkerület (Buda Castle District)

The District I (Várkerület) literally translates to castle district, and is where the Buda Castle is located. The Buda Castle is a must visit place in Budapest, and was firstly built from 1247 to 1265. The castle endured throghout the centuries, with multiple renovations and surviving through a number of wars.

This district is one of the best areas to stay in Budapest if you want to enjoy a relaxed atmosphere. You can have long walks around the castle hill and gaze the beauty of Budapest.

The Buda Castle District, is the perfect place to stay in Budapest for families and couples due to its picturesque setting, rich history, and tranquil atmosphere. This neighborhood offers a wide range of attractions such as the historic Buda Castle, the Fisherman’s Bastion, and Matthias Church, all within walking distance. Additionally, the area has plenty of family-friendly and romantic restaurants, cafes, and shops to explore. With its stunning views of the Danube River and the city, District I is an excellent choice for those seeking a relaxing and charming vacation in Budapest.

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District V – Belváros-Lipótváros

The District V is one of the most popular among tourists, as it gathers a number of important attractions. The Budapest Parliament is probably the main sight in this district.

You can walk along the famous Váci utca shopping street, and also enjoy a stroll on the banks of the Danube. This district also has a number of delicious snack bars and restaurants for all budgets.

The District V is the ideal place to stay in Budapest for shopping enthusiasts. This neighborhood boasts an array of high-end boutiques, designer stores, and luxury shopping centers such as the Váci utca and the Fashion Street. In addition to the upscale shopping options, the area is also home to several popular street markets, including the Great Market Hall, where visitors can find traditional Hungarian souvenirs, local foods, and handmade crafts. Furthermore, the district’s central location provides easy access to other popular shopping destinations in Budapest, making it a shopper’s paradise.

The Vörösmarty tér is at the very heart of this district, and is also a great place for eateries. The Budapest Spring Fair and The Budapest Christmas Fair also take place in this square.

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Budget Accommodation in Budapest District V – Belváros-Lipótváros

City Rooms – an affordable accommodation with easy metro access and close to the prestigious Váci pedestrian street.

Reasonably Priced Accommodation in Budapest District V – Belváros-Lipótváros

Hotel SasOne – a perfectly located hotel close to the St. Stephen’s Basilica and the Deak Ferenc Square.

Leo Panzio Hotel – a cosy hotel in an excellent location, close to the Váci street and with easy access to the metro at the Ferenciek tere station.

budapest hungary

District VI – Terézváros

The District VI (Terézváros) is one of the best areas to stay in Budapest for all kinds of visitors. It is a rather busy district, with plenty of entertainment options.

The Andrássy út and the Teréz körút are two of the main avenues in the city crossing this district. Its intersection, called Oktogon, is also a reference point in Budapest. The Budapest Metro Line 1 also crosses this district, and is one of the oldest in the world.

The District VI has plenty of restaurants and hotels, for all budgets. Some of its affordable restaurants are always opened, so it is a great option to grab a snack at late hours (especially in the Oktogon area).

It is also close to the Heroes Square (Hősök tere) and the City Park (Városliget), although they are already in the XIV district.

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Budget Accommodation in Budapest District VI – Terézváros

Multipass Hostel – a budget option close to the Nyugati Railway Station, with easy access to the metro, in one of the best areas to stay in Budapest.

Reasonably Priced Accommodation in Budapest District VI – Terézváros

Six Inn Hotel – a great option in a calm area, near the Andrassy Avenue and a relatively short walk to the Heroes’ Square.

Ibis Budapest Heroes Square – the perfect hotel in Budapest if you want to stay near the Heroes’ Square.

District VII – Erzsébetváros

Erzsébetváros is known as the Jewish quarter of Budapest, with a number of synagogues and Jewish restaurants in the region. It has a prime location in Pest, with plenty of things to do. The area is one of the favorites among foreign tourists and party goers, and it is a great place to meet people and have drinks on the cheap.

The District VII (Erzsébetváros) is probably the best area to stay in Budapest if you are visiting the city by train. The Keleti Station is pretty close to this district, and is located in the VIII district. In fact crossing just crossing a street crossing separates Erzsébetváros to the Keleti Station.

If you are travelling by train to Hungary, check our Budapest Railway Guide.

As mentioned above, it isone of the best locations in Budapest to enjoy the nightlife, as many bars are in this district. The famous ruin bar Szimpla Kert is also in the District VII, and currently receives a high influx of tourists daily.

Budget Accommodation in Budapest District VII – Erzsébetváros

Capital Guesthouse Budapest – an excellent budget choice in Budapest. A great location at a relatively short walk to the Budapest Keleti train station.

Omega Guesthouse Budapest – a nice Guesthouse close to the Blaha Lujza square, with convenient metro and tram connections

Reasonably Priced Accommodation in Budapest District VII – Erzsébetváros

City-Hotel Budapest – a great hotel in a very convenient location at te Budapest VII district.

Roombach Hotel Budapest Center – another excellent choice in one of the best areas to stay in Budapest, close to the Deak Ferenc Square.

Other Districts

Apart from the areas above mentioned, you may also consider some other districts in Budapest. The District II can be also a good choice in the Buda Side, if you prefer a more calm atmosphere. The area close to the Margaret Bridge (Margit híd) and the Margaret Island (Margit-sziget) is especially good. The Margaret Island in the Danube is a great place to enjoy the nature of Budapest.

You may also consider the District VIII (Józsefváros) in the Pest side. This area has improved its status in the past years and is becoming a good choice for tourists. In this district, the best areas to stay are close to the Astoria metro station the Blaha Lujza tér.

Luxurious Hotels in Budapest

Four Seasons Hotel Gresham Palace Budapest – a fabulous luxurious hotel in one of the most prime locations of Budapest, right next to the Chain Bridge.

Boscolo Budapest, Autograph Collection – a luxurious hotel in the District VII, featuring the New York Café, one of the most splendid in Europe.

Kempinski Hotel Corvinus Budapest – a sumptuous hotel that enjoys one of the best locations in Budapest, close to the Deák Ferenc square, the Basilica, and the Vörösmarty ter.

Cost of Travel in Budapest, Hungary

Despite the rising influx of tourists to Budapest, the cost of travel in the city remains quite affordable. That is especially true if you compare it to some cities in its region, like Vienna or Bratislava.

best places to stay in Budapest

Budapest is probably of the best cities to eat in Europe, with all kinds of restaurants widely available. From turkish kebabs to chinese buffets, you can find all kinds of cheap eateries in Budapest, almost always opened.

The Hungarian kitchen is also well represented in Budapest’s restaurants. You should definitely taste the world famous Goulash (gulyás) but also Langos, as well as the delicious local beer and traditional Hungarian wines.

The public transport network in Budapest is also a good surprise for first timers. With four metro lines, and a wide network of buses and trams, its easy and relatively cheap to get around in the city.

You may also check our Budapest travel budget post, for more information.

Best Months to Visit Budapest, Hungary

Hungary has a temperate, continental climate. Winter can be quite cold with temperatures plummeting below zero and snowfalls. Summer on the other hand, have days of soaring heat, with temperatures rising well above 30 degrees.

Choosing the best months to visit Budapest will depend on the purpose of your stay.

January and February are pretty cold, so tourists tend to avoid the city during winter. However, accommodation prices are the lowest, and it may be a good idea if you prefer to avoid crowded places.

Spring and Autumn are probably the best seasons to visit Budapest, as the weather is inviting to outdoor activities.

There are two important events held in Budapest to be considered, if you want to visit Budapest. One is the Formula 1 GP, and the other is the Sziget Festival, one of the biggest summer music festivals of Europe. The city is quite busy in the time of these events, and unless you are coming to Budapest for them, it is cheaper to avoid them.

Other resources for Traveling in Central and Eastern Europe

If you are traveling in Central and Eastern Europe you may want to check some of our other guides to cities in the region. Check our guie on where to stay in Prague, the best places to stay in Bratislava and our guide to Krakow.

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