Where to stay in Budapest – 7 best areas and the best accommodation in Budapest, Hungary

Budapest is Hungary’s capital and largest city, and an iconic European destination you absolutely must visit. Nicknamed the City of Spas, Budapest is known for its healing thermal waters, grand architecture, and rich history, but even more so as a cultural hub and for its vibrant nightlife and dynamic culinary scene. I only visited Budapest recently and I can not wait to head back!

Budapest’s unique layout, divided by the Danube River into Buda and Pest, offers diverse vibes on each side, and further in each district. Where you choose to stay in Budapest will significantly shape your experience.

As you navigate Budapest’s districts, consider your priorities – whether it’s proximity to historic landmarks, vibrant nightlife, or a peaceful setting near nature. Personally, I’ve appreciated the eclectic vibe of District VII and the convenience of District V the most.

In this guide, I’ll help you navigate through the city’s districts, from the medieval charm of Castle Hill to the vibrant ruin bars in the Jewish Quarter, and help you choose the perfect location and hotel for your stay.

This guide to accommodation in Budapest will walk you through:

1. A geographical breakdown of the best areas to stay in Budapest
2. All the info you need to make an informed decision on the best area for you
3. A selection of the best accommodation options for each area, budget, and type of accommodation

Where to stay in Budapest – best (and worst) areas and suburbs

With 23 different districts, it can easily overwhelm you when trying to find the right place to stay in Budapest. But once you understand the city structure it gets easier. District 5 is the City Center and the other districts form a circle around it. The closer to the center you stay, the better. 

Suburban Budapest district numbers are higher, there are fewer hotels, and they are generally inconvenient to stay in. You can easily identify your hotel’s district by looking at the two middle numbers on the address zip code.

Buda or Pest side?

Before you decide where to stay in Budapest, you need to know the pros and cons of staying on the Buda or the Pest side of the city. 

Buda, known as the Castle District, is on the western side of the Danube River. Its rolling hills guarantee you the best views of the city. It is a slightly calmer location with plenty of green spaces making it a family favorite, but can be a long walk to the many attractions. Luckily, there are regular trams and buses.

On the other hand, the Pest side has most of the attractions including a bustling nightlife and plenty of hostels. It is popular among young travelers and couples who enjoy a good ruin bar as well as having everything close. You still need public transport to reach Szechenyi Bath and other attractions on the Buda side.

7 Best areas to stay in Budapest

Here’s a quick breakdown of the best districts and areas to stay in Budapest:

• District 1 (Várkerület/Budvar or Castle District) is the safest central district in Budapest with beautiful views and green spaces, and home to Buda Castle and the Fisherman’s Bastion.
• District 5 (Belváros/Lipótváros or City Center/Downtown) lines the Pest side of the Danube and is home to some of the city’s main attractions, like the Parliament and St. Stephen’s Basilica, Fashion Street, as well as high-end dining and luxury hotels.
• District 6 (Terézváros) is centrally located and boasts entertainment and culture with operas, theaters, restaurants, and cafés.
• District 7 (Erzsébetváros or Jewish Quarter) is a trendy and cultural neighborhood with attractions like the Great Synagogue and New York Café, but also home to a plethora of ruin bars, boutique shops, food trucks, cafés, and garden bars.
• District 8 (Jószefváros or Palace District) is a growing hipster and artist vibe with hip cafés and art galleries, the National Museum, and palaces.
• District 9 (Ferencváros) is a budget-friendly district in Budapest, home to the Great Market Hall, the Holocaust Memorial Center, the National Theater, and the Palace of Arts.
• District 11 (Gellérthegy/Szentimreváros) is an up-and-coming neighborhood on the Buda side with art galleries, cafés, and the Liberty Statue atop Gellért Hill.

Unsafe areas to avoid in Budapest

Budapest is a large city and there are certainly some areas it is better to avoid. The 5th, 6th, and 7th districts have gained so much popularity among tourists and are easily considered the best areas to stay in Budapest.

But with popularity comes crime, so keep an extra eye on your belongings and avoid dark alleys at night. Especially in the party areas. Police are generally visible in there, but I would warn against walking home alone at night – it is better to get a taxi or an Uber to stay safe.

If you stay in the 8th district, you want to avoid the areas around the border with the 7th district, stay clear of old, abandoned streets, and watch your belongings on the tram. But by staying in the palace area, it is like a different district within the district – newly developed with a safe vibe.

The most crime-ridden district in the city is number 10 where you find the city’s slum at Hero Street, but this is a district you likely won’t frequent at all as a tourist.

In my personal experience, I have always felt safe in Budapest, so with these tips in mind and staying in the tourist areas of the city you should have a safe trip to Budapest.

Best accommodation in Budapest

Budapest offers a wide range of accommodation types from cozy affordable hotels to sumptuous 5-star hotels like New York Palace and apartments. But Budapest also provides some unique opportunities like staying in a boat hotel on the banks of the Danube River.

Where to stay in Belváros/Downtown (District 5)

Best for: first-time stays, sightseeing

Known for: central location, the Hungarian Parliament, the cathedral, high-end shopping, restaurants, and cafés.

See deals: Accommodation in Budapest Downtown

This is the best area to stay in Budapest because of its closeness to tourist attractions. It consists of extravagant boulevards with high-end shopping and stylish cafés and restaurants. 

You have the most photographed building in the city, the Hungarian Parliament on the riverfront together with the Shoes on the Danube Monument, and St. Stephen’s Basilica.

You can easily see the main attractions on a bike tour or for even more convenience, a segway tour. I also recommend going on at least one walking tour of the city and the 5th district is the perfect place to do so.

District 5 is the ideal hub for getting around the city with the metro lines M1, M2, and M3 meeting at Deák Ferenc tér station.

District 5 is the strict city center and in my opinion, the best area to base yourself in Budapest.

Best hotels in Budapest Downtown

Splurge | Four Seasons Hotel Gresham Palace

Upper end | Dorothea Hotel

Mid range | Three Corners Downtown

Mid range | Emerald Hotel

Budget | Hotel Rumor

Where to stay in the Jewish Quarter (District 7)

Best for: nightlife

Known for: ruin bars, street food, street art, synagogues

See deals: Accommodation in Budapest Terézváros

Before Hungary was occupied by the Germans during the Second World War, a thriving Jewish community lived in Budapest. The Germans created a Jewish Ghetto where the remaining Jews in the country were contained. That territory is known as the Jewish Quarter today.

To learn more about the Jewish history of the area – this tour is a great introduction and it includes a visit to the Great Synagogue.

Today, it is a hip and bohemian part of town. And if you are looking for where to stay in Budapest for nightlife, this is it. The 7th district boasts most of Budapest’s ruin bars and Szimpla Kert, the city’s first ruin bar, is a must-visit. I highly recommend joining this pub crawl to get an introduction to the best ones.

Don’t miss out on the incredible street art and underground culture in the district. You also find some incredible foodie treasures in the Jewish Quarter, so don’t be afraid to clear out the food trucks and sample something new.

Best hotels in the Jewish Quarter

Splurge | Anantara New York Palace Budapest

Upper end | A22 Boutique Suites

Mid range | Florin Apart Hotel

Mid range | Onyx Luxury Budapest

Budget | Ambra Hotel

Where to stay in Terézváros (District 6)

Best for: culture

Known for: opera houses, theaters, music hall

See deals: Accommodation in Budapest Terézváros

Budapes’s 6th district elegantly gives you a taste of two worlds. On one side, it is an extension of the bustling vibe of District 5 with elegant avenues and upscale shopping, on the other side, it is a peaceful residential area.

But the neighborhood has its own charm setting it apart from the others and is by far one of the best districts to stay in Budapest for culture. If you enjoy a night at the opera or going to the theater, don’t miss out on the cultural shows hosted in the Hungarian State Opera House and the Operetta Theatre.

A ride on the historical M1 metro line should not be left undone – it was the first electrified underground metro built in 1890 and is now protected by UNESCO.

Best hotels in District 6

Upper end | W Budapest

Mid range | Hotel Moments Budapest

Mid range | Barceló Budapest

Budget | Opera Garden Hotel & Apartments

Where to stay in Budapest Castle District (District 1)

Best for: first-time stays, families, sightseeing, city views

Known for: Buda Castle, Castle Garden Bazaar, Bastion, St. Mathias Church

See deals: Accommodation in Budapest Castle District

Situated on the Buda side, District 1 is home to several of the city’s thermal baths as well as attractions like Buda Castle, the Castle Garden Bazaar, and the fairytale towers of the Fisherman’s Bastion. I highly recommend going on this walking tour that covers them all.

This is Budapest’s old town where a faded elegance shines through as you uncover cozy cafés, restaurants, and museums. It gives you more of a relaxed, local vibe than other areas of the city.

The Castle district boasts a wealth of green spaces, including one of the city’s largest parks, Tabán. Climb up Gellért Hill or take advantage of the hiking trails on Naphegy Hill for a nature fix.

The views of the Hungarian Parliament Building across the river are unrivaled and with a great public transport system, you can get across the river to the Pest side in minutes.

This is the best location to stay in Budapest for a quieter stay away from the hustle and bustle of the bars on the Pest side.

Best hotels in Budapest Castle District

Upper end | Hilton Budapest

Upper end | Hotel Clark Budapest

Mid range | Maison Bistro & Hotel

Mid range | Monastery Boutique Hotel

Budget | Park Plaza Budapest

Where to stay in Jószefváros (District 8)

Best for: those traveling by train

Known for: Natural History Museum, National Museum, beautiful architecture, palaces

See deals: Accommodation in Budapest Jószefváros

Also known as the Palace District, this is the best area in Budapest to stay if you travel by train as the city’s main train station, Budapest-Keleti is found there.

The neighborhood boasts an artistic student vibe and hosts some of Budapest’s tourist attractions like the Natural History Museum and the National Museum. Yet, it is one of the lesser touristy areas in Budapest, which is what I love the most about it.

In the 1800s, the neighborhood was mostly inhabited by nobles and aristocrats. A walk through the old neoclassical and baroque-style buildings gives you an idea of how wealthy this area once was.

Today, fabulous restaurants dish up some flavorful meals, and street food stalls impress with their creativity, so make sure you join this street food tour! For a relaxed café culture, there are no better places to stay in Budapest.

Best hotels in District 8

Upper end | Kozmo Hotel Suites & Spa

Mid range | Hotel Museum Budapest

Mid range | Eurostars Palazzo Zichy

Mid range | EST Grand Hotel Savoy

Budget | Atrium Fashion Hotel

Where to stay in Ferencváros (District 9)

Best for: beer enthusiasts, families

Known for: craft beer

See deals: Accommodation in Budapest Ferencváros

This is the best place in Budapest for craft beer with countless bars and restaurants serving fantastic locally and internationally crafted beers. So if this sounds like your jam, you have very likely found your preferred location in the 9th district. And don’t miss out on a guided craft beer tour to get a taste of the best ones! You also find some of the cheapest places to stay in Budapest in the 9th district. 

Bordering the 5th district, you are still close to all the top attractions – but make sure you book your accommodation near the center, so you don’t get too far away from where things happen. I recommend staying above Haller where the accommodation is not so worn out and you can easily reach the more central areas with the tram and metro.

Being a quieter part of town you can enjoy pedestrian areas and lush parks. It is easy to tell why it is so popular among families – just make sure you work out where the nearest tram or metro station is from the hotel to avoid unnecessary walking.

There are also some interesting museums to stop by, like the Fradi Museum and the Holocaust Museum. For a sprinkle of artistic vibes, don’t miss out on the Trafó Arts Centre. For a bite to eat, hit the Great Market Hall, the city’s oldest and largest indoor market.

Best accommodation in District 9

Upper end | TRIBE Budapest Stadium

Mid range | Three Corners Lifestyle Hotel

Mid range | Leonardo Hotel Budapest

Budget | MEININGER Budapest Great Market Hall

Where to stay near Gellert Hill (District 11)

Best for: families, nature lovers

Known for: city views, green spaces

See deals: Accommodation in New Buda

Recognized as New Buda, this is the best district to stay in Budapest for anyone looking for a quieter and greener part of the city. Gillért Hill is located on the limit between the 11th and the 1st districts so the first thing to do when you arrive is to climb up to the Statue of Liberty for postcard views of Budapest. If your muscles get sore, the healing water of Gellért Thermal Baths awaits at the bottom of the hill!

District 11 is mainly a residential area but it has become so much more than that. Meandering through the neighborhood, you will discover chic cafés and bars that have sprung up in the last decade and new art galleries that give opportunities for young artists to display their work.

Best accommodation in District 11

Mid range | Five Season’s Apartment

Mid range | Allee Apartment

Budget | Lakeside Budapest Residences

Budget | Gecko Studio

How many days in Budapest

I’d recommend spending around 3 to 5 days in Budapest. This timeframe allows you to explore the main attractions, experience the local culture, and enjoy the vibrant atmosphere of the city, while also leaving enough time to relax in the thermal baths or experience the city’s wild nightlife.

What you need to know before choosing your Budapest accommodation

Parking can be expensive

Most hotels in the city center don’t have private parking or it’s extremely expensive (I’ve seen prices of up to 40 eur per day). If you’re traveling by car and staying for a while, you might want to park on the outskirts and take a taxi or public transport to the city center. Otherwise, have a look at the public garages. I found an affordable Polloack garage just behind Muzeumkert. 

Public transport is your friend

Getting around the different areas of Budapest is easy with the city’s vast public transport system. Use any of the four Metro lines (M1, M2, M3, or M4) to get around or take the tramlines 2, 4, or 6. 

For easy travel between the Buda and Pest sides of town, the trams number 47 and 49 are best. Tram 19 takes you along the Danube on the Pest side, passing several monuments on the way.

You can purchase tickets on any ticket vending machine and in newspaper kiosks. The Budapest Card gives you free access to public transportation.

Not all seasons are created equal

Spring, summer, and fall are the most popular seasons to visit Budapest City. Central Budapest, especially books up quickly due to high demand and prices are generally a bit higher.

I strongly recommend booking your accommodation early when going between May and September. But even if you visit Budapest in winter, be prepared for higher prices and less availability during public holidays and festivals.

Getting to Budapest

Budapest is the main arrival point for anyone coming to Hungary and is well-connected to neighboring countries and the rest of Hungary by bus and train.

By air: Budapest Ferenc Liszt International Airport, often referred to as Ferihegy, is the biggest and most frequented international airport in Hungary. It has connections to a multitude of international and national destinations. It is only 30 minutes by shuttle from the airport to the city center.

By boat: The Danube River makes Budapest accessible by boat from neighboring countries on the Danube like Vienna and Bratislava besides other local destinations located on the riverbank.

By car: Located centrally in Hungary, Budapest is easily reached from all neighboring countries by car. It can be hard to find free parking in the city center, though, so booking a hotel with private parking is ideal.

By bus: Traveling by bus to Budapest is convenient and budget-friendly from other Hungarian destinations and neighboring countries like Slovakia and Austria. Some of the bus companies that frequently travel to Budapest are FlexiBus, RegioJet, and ArdaTur.

By train: Budapest Keleti station is the city’s main inter-city train station which daily connects with 25 European capital cities. The train station is 3 km from the city center but well connected with metro lines 2 and 4.

Getting around Budapest

Budapest is a walkable city, but there are many ways you can speed up between attractions. The trams are easy to use and one of the most iconic ways to get around and you can access free public transport with the Budapest Card.

Other ways to get around are hiring a bike for the day or joining an e-bike tour of the city. There are also e-scooters for rent on the street, all you need to do is download the app of the specific e-scooter company and pay to unlock it.

You can also jump on the hop-on-hop-off bus which will drop you off at the major tourist sites. It includes an audio guide, a walking tour, and a Danube River cruise.

Planning a trip to Budapest?

Budapest is a fantastic city with a rich blend of history, culture, picturesque views, a vibrant food scene, lively nightlife, and relaxing thermal baths. With so much to explore and experience, make sure to check out the articles below for my top recommendations when visiting Budapest!