Where to stay in Budapest- five of the best neighborhoods

When planning a trip to Budapest, all travelers face the question – which district is best to choose for booking accommodation. The capital of Hungary consists of as many as 23 districts, but travelers are better off choosing one of five. Narrow your search with this guide to the best districts of Budapest, where to stay and what to visit during your trip to this wonderful city.

Similar to the districts of Prague, each district has its own unique places where you can spend at least a day. Consider staying in the following districts, which are best for tourists in Budapest: Buda with its Castle Hill (districts I and II), and Pest – Belváros and Lipótváros,Erzsébetváros and the Jewish Quarter, Józsefváros and Terézváros (from districts IV to VII).

District V: Belváros and Lipótváros

This is the most popular district among tourists, located in Pest, stretching along the embankment of the Danube. Here you will find Budapest’s elegant residences and hotels. This is also where you can feel like you’re in the past – Austro-Hungarian architecture, old art nouveau hotels, shopping in the best stores – all of this is concentrated in District V of Hungary’s capital.

Note that if you come to Budapest by car, you should look for a hotel with its own parking (most likely it will be paid – from 25 Euro per day).

What to do and see in District V of Budapest

Head to the embankment to see up close how the Hungarian Parliament sparkles in the evening.
Nearby you can see the famous and touching Holocaust memorial ” Shoes on the Danube“.
Stroll along Zrínyi street, where the most touristy restaurants are located, to see the most beautiful view of St. Stephen’s Basilica, located in this central part of the city.
Go shopping on Váci street – here are stores of well-known brands.
Admire the Post Savings Bank of Ödön Lechner in Art Nouveau style.
If you want to get away from stone buildings and enjoy the shade of park trees – cross the Margit bridge to get to the eponymous Margit Island, which is located in the middle of the Danube.
It’s also nice here in summer if you plan to relax at the Palatinus Strand Baths pools on Margit Island.
Tasty breakfasts with specialty coffee – Double Shot Coffee & Brunch (Budapest, Veres Pálné u. 33), or at Kontakt – speciality coffeeshop (Budapest, Károly krt. 22).
Try strudel at Strudel House Budapest, Első Pesti Rétesház (Budapest, Október 6. u. 22).
Treat yourself to dinner at the Michelin-starred Costes Downtown (Budapest, Vigyázó Ferenc u. 5).
Visit the rooftop bar High Note SkyBar (Budapest, Hercegprímás u. 5) to see the lights of the evening city from above.
Go to the Central Market – buy tasty gifts (paprika or spicy Hungarian sausages), and check out its beautiful building as well.

Affordable hotels in District V of Budapest

Gerlóczy Boutique Hotel – The best place in European style in the very heart of the old town and Pest.
Balance Home – Excellent location with easy access to tourist attractions, close to many tourist sites and public transport, so getting around Budapest is very easy.
Budapest Holidays Apartment – Clean and tidy room, convenient location. Close to the 100e bus.
Jackquaters – Apartments in a beautiful building, very modern, with all amenities. The view from the balcony is simply incredible. City center, but quite quiet. Close to the parliament, the embankment, many shops and cafes nearby. 700m to the bus stop to the airport.

District VII: Erzsébetváros and the Jewish Quarter

Part of District VII today combines a complex history with modern life and vibrant youth parties. The Jewish Quarter was a former Nazi ghetto for Jews, where synagogues stand side by side with ruin bars, hedonistic restaurants of Eastern and European cuisine, and unique designer shops.

It’s in the Jewish Quarter that I stayed several times when I came to Budapest. Here there is a huge selection of hotels, hostels and apartments at different prices. For those who want to be in the epicenter of the Friday/Saturday parties – this district will be the best. If you don’t like the noise of nightclubs or ruin pubs, look for accommodation either on the perimeter of this area, or in other districts where it’s much quieter at night.

What to do and see in District VII of Budapest – Erzsébetváros

Discover Jewish heritage at the Great Synagogue on Dohány street. Then head to the Orthodox Synagogue on Kazinczy street and admire the patterns on the walls of the Neomoorish Synagogue on Rumbach Sebestyén street.
Stop by Kiraly street No. 15 to see the memorial of the ghetto wall through the gate.
Have breakfast with pastéis and a coffee at Lisboa Pastry & Bakery, located in the trendy Gozsdú Udvar – this is a network of interconnected courtyards that once belonged to the Jewish ghetto.
Before visiting the local ruin bars, grab a quick bite at Bors Gasztro Bár (Kazinczy u. 10). Here you can order various soups in craft cups, even try tasty borscht.
Or try elegantly served falafel with pita at the Israeli bar Mazel Tov (Akácfa u. 47). Here, tables are set in a former courtyard under lit trees in shabby chic style.
Try the golden coffee at the restaurant located on the first floor of the New York Hotel. The price is 20 Euro, but it is compensated by the incredible interiors.
In the evening, have a few drinks at Szimpla Kert (Kazinczy u. 14) – the first and most famous ruin bar in Budapest, located in a semi-ruined residential complex and decorated with unusual objects and mismatched furniture.
Continue your evening at the entertainment complex Instant–Fogas – the largest ruin bar in Budapest, located in a former dental laboratory. This is one of the most popular nightlife spots in the city with seven dance floors and 18 bars playing a variety of music styles from house and Latin to underground electronic and rock.

Affordable hotels and hostels in District VII of Budapest

Maverick Budapest Soho – Great location – 20 min walk from Keleti, 10 min to the airport shuttle bus. 24-hour reception. Cozy rooms. Clean common areas. Fresh linens, towels. Dining-kitchen, where there’s water, tea, coffee, other little things. There is private parking.
Connection Guesthouse – This lovely little guest house is located right in the heart of Budapest. The owner turned what was once a private apartment into a small oasis. Apartment, rooms, decoration – everything is absolutely outstanding.
Roombach Hotel Budapest Center – Good hotel right in the center of Budapest, lots of places nearby. The room is warm, clean, and has everything you need. Breakfast is also excellent, fresh tasty pastries.

District VIII: Józsefváros

Until recently, travelers avoided District VIII, because at first glance it doesn’t look very nice. But in its center lies the Palace District, named after the palace apartments that once belonged to the aristocratic elite of 19th-century Budapest. It is in the Józsefváros district that the Keleti railway station is located – convenient if you arrive in Budapest by train and also if you plan to visit small towns outside the capital of Hungary.

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What to do and see in District VIII of Budapest – Józsefváros

Get specialty coffee at Lumen (Mikszáth Kálmán tér 2) café, and while you’re enjoying it on the summer terrace, admire the Italian architecture of Mikszáth Kálmán tér square. This is where local vintage shoppers often hang out.
Head to the unusual Vintage Shop on the other side of the Grand Boulevard (Nagykörút). Or to Typo Showroom, for vintage and designer items.
Check out the architectural details at the Ervin Szabó Central Library.
Visit the neoclassical building of the Hungarian National Museum.
Drop by the beautiful Uránia cinema in Venetian-Moorish style, to have a cup of tea in the café or watch an arthouse film.
Visit the alternative cultural center Auróra – there is a wonderful hidden bar in the inner courtyard.
Also in this district is Gólya Presszó (Orczy út 46-48) – a cooperative bar with an underground atmosphere, located in a converted factory. Live music every week, as well as lectures, exhibitions, and movie nights.

Hotels in Józsefváros

Hotel Bristol Budapest – Very convenient location (5 minutes’ walk from the train station), all main city spots nearby. Excellent breakfasts, great staff. We stayed here last winter, in low season there are good discounts, hotel is a 10-minute walk from Keleti station.
Impulso Fashion Hotel – Comfortable, clean rooms with everything you need. The hotel has its own parking, which can be booked for an extra fee.
Bo18 Hotel Superior – the room is clean and has everything you need. Very convenient that there’s a children’s corner in the room. Convenient location near a shopping mall and restaurants.

Hotels near Keleti station

IntercityHotel Budapest≫ – a nice hotel opposite the main entrance of Keleti station.
Planet Holiday Apartments≫ – 5 minutes’ walk to very nice apartments, where a family with children can stay.

District I and II – Buda and Castle Hill

Buda – a high bank of the Danube, with cobblestones dating back to Ottoman times, and grand Habsburg palaces. Tourists often skip this part of Budapest, but if you’ve been to Budapest already, it’s worth checking out apartments in this part of the city.

If you set a filter for “parking” and search well on Booking.com for apartments in Buda, you can find options where you can park your car for free.

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What to do and see in Districts I and II of Budapest – Castle Hill

In the morning, plunge into the thermal pools under the Ottoman domes of the Rudas Baths. The rooftop pool of the baths offers a wonderful view of the Danube.
Climb up to the Buda Castle to visit the Hungarian National Gallery or the castle museum. You can do this on foot, or use the funicular.
Satisfy your hunger with a velvet creamy cake you can order at the city’s oldest pastry shop, Ruszwurm Cukrászda (Szentháromság u. 7)
Take the best photo of the Parliament from under the arches of the Fisherman’s Bastion.
If you missed the baths in the morning, go in the evening, but choose the most beautiful – Gellért Baths. Here, sitting in one of the indoor pools, you can feel like an Austro-Hungarian aristocrat, warming up in mineral water.
In the evening, stroll the whimsical streets and pay attention to the 14th-century synagogue, the ruins around Buda Tower, and the tomb of Abdurrahman Abdi, the last pasha (governor) of Buda.
Order dinner and a glass of wine at Pierrot (Fortuna u. 14) – a Hungarian-French restaurant located in a former medieval bakery.

Hotels and apartments on Castle Hill

Hotel Regnum Residence – A wonderful hotel on a quiet street close to the city center. Stylish, comfortable rooms with hotel compliments. Good cosmetics, delicious breakfasts.
Milford Suites Budapest – Very friendly staff, will advise and help with everything. Good breakfast (everything you need, you can choose). There is private parking. The room has bathroom cosmetics, air conditioning. The location is convenient, even with children we managed to see so much by walking.
Park Plaza Budapest – good breakfasts, wonderful rooms. The hotel’s location with a view of the Parliament is a special treat.

District VI: Terézváros

District VI borders the center of Pest and is a place of variety. Part of Terézváros is lively and full of vibrant spots where locals and tourists alike go for entertainment. The other part is calm and filled with peace. It’s also convenient to stay here with children – if you choose hotels or apartments close to Heroes’ Square and the city park Városliget, you can use the many playgrounds, visit the zoo with your children. Also, the most popular Budapest baths – Széchenyi – are located here.

I recommend reading – Thermal resorts of Hungary – family vacation and health improvement in hot springs

What to do and see in District VI of Budapest – Terézváros

Visit the Hungarian State Opera, or the Operetta Theatre – immerse yourself in the classical music and vaudevilles of Hungarian composer Imre Kálmán.
Here you will find the popular House of Terror Museum – if you’re interested in this topic, it’s sure to impress you.
If you’re interested in shopping – go to Oktogon square, where there are many different stores.
Take a walk in Városliget (City Park) – there are many free playgrounds where you can spend the whole day with your kids.
Behind Heroes’ Square is the unusual Vajdahunyad Castle (Vajdahunyad vára), built as a temporary pavilion for an exhibition. The castle was so loved by the townspeople that it stayed and it’s been standing for almost a hundred years.
Plan at least half a day to relax in the Széchenyi Baths – the historic city baths, where it’s great to sit in hot water right in the open air.
With children, be sure to visit the Budapest Zoo.

Hotels in the Terézváros district

Hotel Rumor – Great location – walking distance to all major sights. The airport bus stop is almost next to the hotel.
Paulay Central Top Suite – Wonderful, spacious, and clean apartment in the center. Everything needed was here. Very clear and understandable check-in instructions.
Adagio Downtown MiniHotel – cozy, convenient, clean, pleasant staff at reception. Lots of good cafes and restaurants nearby. Convenient to get to both sights and the airport (10–15 min from the apartment to the 100E bus stop).
K46 Residence – Wonderful and very convenient apartments, plenty of space, great location, many cafés, bars, restaurants nearby. The apartments have everything needed for a comfortable stay.

Useful articles and links:

Route schedules and tickets for buses – at InfoBus.ua
Green card and Travel health insurance for travel abroad – online on the portal HotlineFinance
Hotel bookings and apartments – Booking.com