
08 Apr Where to Stay in Budapest – Local Tips & Advice
Budapest is a city that feels both grand and gritty, with its elegant boulevards, steamy thermal baths, and graffiti-clad, quirky ruin bars. Whether you’re drawn to historic Buda or vibrant Pest, there’s a neighborhood for every type of traveler.
When it comes to neighborhoods, you can think of Budapest as being similar to the Parisian Arrondissements, moving out in a rough spiral from Buda Castle clockwise, counting up from one (roughly).
Each neighborhood has its own personality; some are more elegant and historic, while others are grittier and more exciting. Here’s a local’s guide to help you decide where to rest your head so you can find the best areas to stay in Budapest for you.
Best Areas to Stay in Budapest
1. District V (City Center)

St. Stephen’s Basilica
This is the beating heart of Budapest, where you’ll find the iconic Parliament building, St. Stephen’s Basilica, and the Danube Promenade.
It’s polished, lively, and full of high-end restaurants and shops, but there are also some curious side streets with unique architectural details, quiet parks, hidden gardens, and parts of the old city wall.
Ideal for: First-time visitors, luxury travelers, sightseeing enthusiasts.
Pros: Walking distance to most major attractions.
Cons: It can be expensive and crowded, especially during peak season.
Where to stay in the City center
Budget: Maverick Downtown – A stylish hostel set in a gorgeous residential apartment building with private and shared rooms, offering a social yet relaxed atmosphere right in the city center.
Mid-range: Prestige Hotel – Classy and comfortable with a touch of old-world elegance. Conveniently located near St. Stephen’s Basilica.
Luxury: Aria Hotel – A music-themed luxury hotel that’s both plush and playful with colorfully designed rooms. Expect rooftop views and a spa to unwind after exploring.
District VII (Jewish Quarter)

Dohány Street Synagogue Budapest. Photo: bzsh.hu
The city’s coolest and most lively area, famous for its ruin bars, street art, and nightlife. You’ll also find historical treasures like the Great Synagogue, Kazincy Street Synagogue, and the Rumbach Sebestyen Street Synagogue.
Because of its abundance of bars and clubs, this part of town is best suited to travelers who love to be in the heart of the action. Although some hotels offer quiet rooms or overlook quieter streets, it might not be the right area for those looking for a good night’s sleep.
Ideal for: Nightlife lovers, creatives, and foodies.
Pros: Endless options for bars, restaurants, and quirky shops.
Cons: It can be noisy at night, especially on weekends.
Where to stay in the Jewish Quarter
Budget: Roombach Budapest Center – A modern, vibrant hotel with clean, compact rooms and a hearty breakfast, right in the middle of the action.
Mid-range: Corinthia Budapest – A grand, classic hotel with luxurious amenities and a gorgeous spa, perfect for unwinding after a day out. It’s packed with history and has a history with celebrity guests.
Luxury: Anantara New York Palace – A decadent, five-star hotel housed in a historic building with lavish interiors and top-notch service. One perk is that you can visit the Insta-famous New York Cafe without queuing up.
District VI (Terézváros)

Hungarian State Opera. Photo: en.wikipedia.org
Home to Andrássy Avenue, Budapest’s Champs-Élysées, and the grand Hungarian State Opera House. It’s upscale yet accessible, with leafy boulevards and impressive architecture. If you go beyond the Grand Boulevard, the neighborhood is pretty quiet, but you’re still just a short walk or ride away from the downtown action.
Make sure you look up while exploring; this area has some stunning architecture. And don’t forget to ride on the metro here: It’s the oldest in Continental Europe and a UNESCO World Heritage Site in its own right.
Ideal for: Shoppers, culture enthusiasts, architecture lovers.
Pros: Excellent public transport links and upscale shopping options.
Cons: Less vibrant nightlife compared to other districts.
Where to stay in District VI (Terézváros)
Budget: Avenue Hostel – A cheerful, budget-friendly option with a social vibe and a central location along the iconic Andrássy Avenue.
Mid-range: Hotel Moments – A beautifully designed boutique hotel offering cozy rooms and a prime location near the Opera House. Make sure you look up when you enter the building, as it features some stunning frescoes.
Luxury: W Marriott Hotel – Modern luxury at its finest, with chic interiors, a rooftop bar, and impeccable service. It occupies the Dreschler Palace, which was once the Ballet Institute, and you’ll find little nods in its design to the building’s ballet history.
Buda Castle (District I)

Fisherman’s Bastion in the Buda Castle. Photo: wheretostayinbudapest.com
Cross the Chain Bridge to Buda’s hillier, quieter side. Here you’ll find the medieval Buda Castle, Matthias Church, and Fisherman’s Bastion. Although Castle Hill is the main attraction, with its quiet cobbled street and pastel-hued baroque houses, the I District continues beyond, spreading out in the surrounding, mostly residential streets.
Most of the area is pretty green, and on the streets backing onto the hill, you may find a few bits that look like something out of Montmartre with stunning staircases with Danube views. There are some restaurants and cafes around, but away from the Castle, it’s less densely packed.
Ideal for: History buffs, families, romantic getaways.
Pro: Breathtaking views of the city and the Danube.
Con: Less nightlife and dining options compared to Pest.
Where to stay in Buda Castle (District I)
Budget: Váralja Home Hotel – A cozy, unpretentious spot with clean rooms and friendly service near the Castle District.
Mid-range: Hotel Clark – A stylish boutique hotel with minimalist rooms and incredible views of the Chain Bridge, along with a rooftop bar.
Luxury: Hilton Buda – Nestled within the castle walls, offering modern comforts and sweeping panoramic views. Part of the hotel was built around a Medieval cloister and the basement of the hotel actually goes into the cave system of Castle Hill.
Alternative neighborhoods to stay in
District IX (Ferencváros)

Photo: mdsz.hu
Hip and creative with a laid-back vibe, featuring the popular Raday Street and the Great Market Hall. You’ll find great options for eating out and if you love craft beer, there are loads of great places to try out here.
District VIII (Józsefváros)

Szabó Ervin Library. Photo: wikipedia.org
An up-and-coming area with a bohemian feel and a growing art scene. Inside the Grand Boulevard, you have the Palace District, a picturesque neighborhood with palatial apartment blocks and arty cafes.
Outside the Grand Boulevard, it’s a little gritty, but you’ll get a more authentic feel for real Budapest life.
District XIII (Újlipótváros)

Residential, charming, and just a little offbeat, with the Danube promenade and an eclectic dining scene. This part of town is rich in Bauhaus architecture and it’s packed with leavy streets and lovely parks. Foodies will love the area for its cafes, restaurants, and delis.
Where to stay
Budget: Palatinus Apartment – Affordable and cozy apartments with kitchen facilities for a home-away-from-home feel.
Mid-range: The Three Corners Lifestyle Hotel – A stylish, contemporary hotel with excellent amenities and a convenient location.
Luxury: Brody House – An artsy, bohemian boutique hotel with unique rooms designed by local artists and a creative atmosphere.
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