Where to Stay in Budapest: Best Districts & Hotels
Budapest is one of Europe’s most fascinating cities and I’m not just saying that because I’m a local! Unique landmarks, sizzling medicinal baths, eclectic nightlife, and excellent food all contribute to Budapest’s charm.
But if you are planning your first trip to the Hungarian capital then one of the questions at the top of your list will naturally be: where is the best place to stay in Budapest?
Well, you have come to the right place to find out! As a local who has been living in Budapest for more than 8 years, I got to know the city like the back of my hand and I’m here to spill the beans on exactly where to stay in Budapest.
My guide not only covers the best areas to stay in Budapest but my favorite hotels in each area as well. So let’s get started, shall we?
*Disclosure: This post contains a few affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through my link.*
Overview of Where to Stay in Budapest
Located in the northern part of Hungary, Budapest is divided into 23 districts that straddle both sides of the River Danube. The river divides the city into two different parts: Buda and Pest.
Fun fact: Buda and Pest used to be individual cities until 1873 when they were officially merged together with a third part, Óbuda. These 3 parts together created a bigger metropolis, the one we know as Budapest today.
Geographically speaking, 6 of the 23 districts are located in Buda, one is located on an island called Csepel between Buda and Pest, and the rest of the districts are located on the Pest side of the city.
Whichever place you choose to stay, you will be relieved to hear that Budapest is vastly walkable and that the city is well served by public transport when you want to travel further afield.
While you’re mulling over things, let’s run through a quick overview of the best areas to stay in Budapest and my preferred hotel for each one.
| Area | Recommended Hotel |
|---|---|
| District I (history, sightseeing, photography) | Hotel Clark Budapest |
| District II (couples, tranquility, thermal baths) | Novotel Budapest Danube |
| District V (first-time visitors, luxury accommodation, restaurants) | InterContinental Budapest |
| District VI (food, shopping) | Mamaison Residence Izabella Budapest |
| District VII (nightlife, food, street art) | KViHotel Budapest |
| District VIII (budget-friendly accommodation, museums, craft beer scene ) | Bo18 Hotel |
| District IX (local life, shopping, budget-friendly accommodation) | The Three Corners Lifestyle Hotel |
| District XI (panoramic views, photography, thermal baths, sunrises) | Anna Hotel |
| District XIII (laid-back atmosphere, families, couples, nature) | Danubius Hotel Helia |
Map of Best Areas to Stay in Budapest
How to use this map: This map is fully interactive, so you can move around, zoom in/zoom out, and click on the icons. If you want to see a larger map, click on the bracket in the upper right corner. To see more details and the different layers, click on the tab in the upper left corner. If you want to save it for later, click on the star icon next to the name of the map. Then simply open Google Maps either on your desktop or phone, go to ‘Saved’/’Maps’, and open the map whenever you need it.
Where to Stay in Budapest: Best Areas & Hotels
1. District I
District I, commonly referred to as Castle District, is situated on the Buda side of the city. This is the historical heart of Budapest where you’ll find such important landmarks as Buda Castle, Fisherman’s Bastion, and Mattias Church.
District I is definitely one of the best areas to stay in Budapest for sightseeing purposes on the Buda side. It’s also super romantic so it’s an idyllic choice for couples.
Due to the sheer space occupied by the monuments, there isn’t so much room left for the hotels and it’s generally one of the most expensive parts to stay in Budapest. Don’t worry though, you’ll still find options for every budget!
What’s even better is that hotels located on the riverside grant a phenomenal view over the Pest side of the city. Of course, these are a bit pricier but if you want to make your weekend in Budapest more memorable, definitely go for it!
Pros and cons of staying in District I
Pros
- Home to many important historical sights.
- Staying in District I makes it easier to wake early and visit the monuments at sunrise or at least before the crowds arrive.
- One of the most beautiful and romantic parts of Budapest.
- Lots of luxury hotels with sweeping views over the Pest side.
Cons
- The most touristic area in the city, therefore it’s mostly crowded.
- Public transportation is not so good.
- Dining and nightlife options are limited.
Best hotels in District I
2. District II
District II is located just north of District I and encompasses a large patch of Buda which runs from the left bank of the Danube to the border of the Buda Hills which are located in District III.
District II is one of the best locations to stay in Budapest if you want to split your time between exploring the highlights of the Castle District and hiking in the nearby hills and woodland.
If you choose this area then my recommendation is to seek accommodation close to the river so that you are not disconnected from the inner city and can easily hop across the water into Pest.
After all that walking you will be pleased to know that District II offers a generous spread of thermal baths. While they make less of a visual impact than the Széchenyi Baths, the options in District II such as the Lukács Baths are less touristic and frequented by locals as well. It’s a calm and serene choice perfect for couples seeking a romantic retreat.
Pros and cons of staying in District II
Pros
- Despite its proximity to the Castle District, the second district is relatively overlooked by tourists and you will experience a more local vibe.
- This is a beautiful district with an attractive mix of local and international restaurants.
Cons
- Minimal nightlife and a limited supply of hotels.
- While there is allure in the feeling of being off the beaten track you might feel more detached from the inner city.
Best hotels in District II
3. District V
Hopping across the river to the Pest side of Budapest, District V occupies the riverside area that is dominated by the mighty Hungarian Parliament Building. Other highlights worthy of whipping out your camera include St. Stephen’s Basilica, the Budapest Eye, and the lively Deák Ferenc Square.
Much of this neighborhood rubs up against the river and hotels are only a short walk from the bankside with some offering heartstopping views.
District V forms the classic city center of Budapest along with District VI and District VII. Being so centrally located and permitting easy access to everywhere else in the city including the Castle District, District V is the best location to stay in Budapest for first-time visitors.
If you’re looking for abundant nightlife with lots of bars and clubs, this is definitely one of the best areas to stay in Budapest for you. Besides bars and clubs, you’ll also find some of the best restaurants here, as well as beloved hotel chains and countless boutique accommodations.
Pros and cons of staying in District V
Pros
- Most central location with excellent transport links and the option to walk to most places.
- There are heaps of attractions and restaurants in the immediate area.
- You’ll find lots of hotels that offer scenic views of the river and Castle District.
- The district offers some of the best nightlife options.
Cons
- Hotels in this district are more expensive than elsewhere in the city although they are extremely luxurious.
- Noise may be a concern in this busy downtown hub.
Best hotels in District V
4. District VI
District VI (otherwise known as Terézváros) sits to the east of District V and nudges you a little further from the riverside with the promise of budget-friendly digs.
Andrássy Avenue, Budapest’s answer to the Champs-Élysées of Paris, is the main arterial around here and carves its way through the center of the neighborhood before culminating at Heroes’ Square.
In terms of where to stay in Budapest on a budget, Terézváros is the leading contender with a strong offering of low-cost accommodation. Which, if you want to hit the shops on Andrássy Avenue, you’ll really appreciate it as the street is known for its designer labels!
The other perk of staying in District VI is that you will be within easy access to the lush City Park which spreads out behind Heroes’ Square and contains the majestic Széchenyi Thermal Baths. On a more practical note, Terézváros is the location of Budapest-Nyugati, the secondary train station in the city.
Pros and cons of staying in District VI
Pros
- You can find economically priced hotel rooms that do not compromise on comfort.
- Excellent for shopping.
Cons
- Once you leave the glamorous Andrássy Avenue, District VI has a grittier vibe. It’s still safe but families with younger kids may prefer the vibe elsewhere
Best hotels in District VI
5. District VII
If you’ve been waiting for me to share where is the best place to stay in Budapest for nightlife, then this is it!
Fanning out below District VI, the seventh district in Budapest (referred to as Erzsébetváros) is more commonly known as the Jewish Quarter. This neighborhood has a really eclectic vibe and this is where you’ll find the famous ruin bars that occupy dilapidated buildings.
Where there are great bars there is even greater food, and Erzsébetváros will tantalize your taste buds with kosher street food markets, cool local eateries, and upscale international restaurants.
The Jewish Quarter is a haven for architectural lovers and cultural explorers with three synagogues and fabulous street art. You can easily donate a whole day to padding around these streets.
Pros and cons of staying in District VII
Pros
- Excellent food options with a mix of local and tourist clientele.
- The nighttime atmosphere is unbeatable and it really is the best location to stay in Budapest if you’re after a party.
Cons
- Its popularity in recent years has inflated the costs of dining, drinking, and accommodation.
- With the rampant nightlife, you might not get much sleep if you forget to pack your earplugs!
Best hotels in District VII
6. District VIII
District VIII stretches out to the south of District VII and is characterized by its leafy avenues, 19th-century architecture, and sprawling city parks. This neighborhood has been subject to gentrification over the years and is now one of the best locations to stay in Budapest if you’re seeking a bit of casual luxury.
District VIII was strongly formed in the last two decades but still has a mixed picture getting further from the city center. If you are planning to stay here, choose the areas closer to the city center, or the newly established Corvin avenue.
Also known as Józsefváros, District VIII is where you will find some of the best museums in Budapest, including the National Museum and the Natural History Museum. With the promise of dinosaurs to appease the younger kids, District VIII is a fantastic choice for families who want to be out of the bustle of downtown Budapest.
Józsefváros is also the origin of Budapest’s craft beer scene so if you’re a fan of an artisanal brew you can look forward to finding your favorite in the local bars.
Pros and cons of staying in District VIII
Pros
- Convenient if you want to book intercity or international train travel as Keleti Train Station is located in this district.
- Thriving craft beer scene.
- Lots of interesting museums.
Cons
- Metro coverage is limited the further east you stay.
- Further away from the main attractions
Best hotels in District VIII
7. District IX
The boundaries of District IX stretch southwards from the Liberty Bridge and cling to the river. Now that we are venturing down south, District IX and the subsequent areas require more travel time in order to reach the major attractions and landmarks of downtown Budapest.
However, one major highlight of booking accommodation in Ferencváros is that you will have the Central Market Hall right on your doorstep: Budapest’s one-stop shop for fresh produce and souvenirs!
District IX also has an offbeat vibe and is less popular with first-time visitors and weekend trippers so you will spend your time mingling with locals in the sidewalk cafes and craft beer pubs. This is also the closest option for getting to and from the airport.
Offbeat but utterly captivating, District IX is one of the best places to stay in Budapest for returning visitors or travelers looking to experience local life.
Pros and cons of staying in District IX
Pros
- One of the most off the beaten track areas in the city with a local vibe.
- Hotels in District IX are perfect for lower budgets.
Cons
- More travel time is required to visit the touristic center.
Best hotels in District IX
Luxury
mid-range
Budget
8. District XI
Hopping back to the Buda side of Budapest, District XI, otherwise known as Újbuda is considered by most locals and tourists as one of the trendiest parts of town.
Újbuda is actually a huge district, therefore I recommend choosing accommodation closer to the riverside and Gellért Hill. Otherwise, you will need to rely heavily on public buses or even hire a car to reach the center.
District XI is one of the best places to visit in Budapest that offers panoramic views and a spectacular thermal bath (both are courtesy of Gellért Hill!). If you’re planning a spa weekend, then this is one of the best areas to stay in Budapest.
Pros and cons of staying in District XI
Pros
- Handy for Gellért Hill and Gellért Thermal Bath.
- Extremely picturesque and offers an offbeat vibe.
Cons
- There are few hotels in District XI although there are some excellent apartments that offer scenic views.
- This southerly setting is far away from attractions such as Margaret Island and City Park.
Best hotels in District XI
9. District XIII
My final recommendation for where to stay in Budapest whisks us back up to the northern section of Pest. District XIII is a peaceful area that snuggles up against the Danube and is home to Margaret Island where you can enjoy the green space and thermal baths.
The district is actually divided into 5 different neighborhoods, each with different vibes. Újlipótváros is the closest part to the city center where the long streets are lined with boutiques, bookstores, and casual cafes. Lőportárdűlő is more of a business center with lots of modern offices while the other parts of District XIII are more residential.
District XIII feels fairly remote and has more of a small-town vibe yet it’s within walking distance of District V so you get the best of both worlds. This harmony also makes the area particularly suitable for couples looking for a quiet holiday and families.
Pros and cons of staying in District XIII
Pros
- The setting provides a unique perspective of the city that you rarely see in typical photographs.
- Perfect for when you fancy swapping urban sights for a splash of greenery.
Cons
- There are fewer hotels in this district although it is a great option to choose if you would rather stay in an apartment.
