Planning a trip to Budapest but not sure where to stay? I get it — this city is made up of different districts on both sides of the Danube, and choosing the right one can feel a little overwhelming the first time around.
Do you want to be right in the middle of the action, just steps away from St. Stephen’s Basilica? Or would you prefer the charm of cobblestone streets up in the Castle District, with postcard-worthy views of the Parliament glowing at night?
Budapest is genuinely one of my favorite cities in the world — I never get tired of wandering its streets lined with gorgeous, grand buildings that make you feel like you’ve stepped back in time.
In this guide, I’m sharing pros and cons about the most central areas, as well as my top picks for accommodation in different budgets.
Where to stay in Budapest
Budapest is one of those cities that feels both grand and shabby at the same time. Yes, parts are kind of gritty, but also oh so beautiful. The Danube River cuts the city in half, with Buda on the west side and Pest on the east.
Buda is the hilly, historic part of the city, home to the Castle District, cobblestone streets, and sweeping views across the river. Pest, on the other hand, is flat, lively, and modern, with most of the shops, restaurants and nightlife.
When I’m in Budapest, I literally feel like a kid in a candy store because of all the gorgeous architecture. It is incredibly diverse, but the main styles are Neo-Gothic, Neo-Renaissance, Neo-Baroque, and Art Nouveau.
I have a hard time choosing one district (numbered I to XXIII) as my favorite. My first thought is the Jewish Quarter (District VII), just like Kazimierz in Krakow. But then I also remember the insane buildings along Andrássy Avenue and the romantic feel of District 1.
So let’s take a closer look so you can make up your own mind!
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🌟 District VII for nightlife and boho vibes >> Stories Boutique Hotel
🌟 District V for the most central location >> Aria Hotel Budapest
🌟 District I for castle, views and quiet >> Boutique Hotel Victoria Budapest
District V (Belváros – City Center)
District V is the very heart of Budapest on the Pest side of the Danube, and it’s where many first-time visitors choose to stay. This area is packed with some of the city’s most iconic sights, including the Hungarian Parliament Building, St. Stephen’s Basilica, and the Danube Promenade with its stunning river views.
It is, however, not my favorite place to stay in Budapest because it feels too rushed and busy (unless I’m in the Four Seasons Gresham Palace). And a lot of the restaurants are geared towards tourists and therefore more expensive.
🛌 My top picks >> Other than Gresham Palace, I also love Aria Hotel Budapest. The interior is just beautiful and I love the staff here. For a more affordable option, I highly recommend Bella DeLux Apartment. You have to see the ceiling, and you can walk everywhere from there.
✅ Super central, you can walk to all top sights
✅ Beautiful architecture and river views
✅ Great selection of hotels, restaurants, and cafés
❌ More expensive than other districts
❌ Feels crowded and touristy
❌ Lacks local atmosphere
❌ Limited nightlife compared to areas like District VII
District I (Castle District – Buda side)
District I, also known as the Castle District, is where you’ll find some of my favorite Budapest attractions, Buda Castle, Matthias Church, and the Fisherman’s Bastion — all offering some of the best panoramic views of the Pest skyline.
The cobblestone streets, pastel-colored buildings, and charming cafés make it feel like stepping into a storybook. While the area gets busy with tourists during the day, it’s much quieter in the evenings when the day-trippers leave and the city lights begin to sparkle across the river.
However, with beautiful attractions come many restaurants and cafes tailored to tourists. If you want somewhere with a more local feel, walk a few streets away. Another drawback is the lack of metro stops; most of them are by the river.
🛌 My top pick >> Boutique Hotel Victoria Budapest, you have to see the insane view of the river and the Parliament.
✅ Stunning views over the Danube and Parliament
✅ Peaceful, romantic atmosphere in the evenings
✅ Filled with history, architecture and photo spots
✅ Great boutique hotels and apartments
❌ Fewer dining and nightlife options than Pest
❌ Can feel quite touristy during the day
❌ Limited public transport in the hills
❌ Lots of uphill walking
District VII (Erzsébetváros – Jewish Quarter)
District VII, better known as the Jewish Quarter, is the heart of Budapest’s nightlife and creative energy. It’s packed with quirky ruin bars, colorful street art, trendy cafés, and vintage shops, all set against a backdrop of rich Jewish history.
Here you’ll find the Dohány Street Synagogue, the largest in Europe, as well as “the world’s most beautiful café” (in the same stunning building as Anantara New York Palace) and the famous ruin bar, Szimpla Kert.
By night, the area transforms into a buzzing social hub — think music, cocktails, and twinkling lights spilling out of old courtyards.
🛌 My top picks >> My favorite hotel is the quirky Stories Boutique Hotel, and you have to see the gorgeous restaurant attached to it. This street is technically the border between VII and VI, but I decided to include it here since it feels like an extension of the Jewish Quarter.
For more affordable accommodation, I really like Asbóth Boutique Suites. They are small but very well done and in the most perfect location.
✅ Best area for nightlife, bars, and unique restaurants
✅ Central and walkable to most major attractions
✅ Full of personality, art, and local culture
✅ Great mix of boutique hotels and budget stays
❌ Noisy, especially on weekends
❌ Some parts can look a bit gritty
❌ Limited parking and green spaces
District VI (Terézváros)
District VI, or Terézváros, is one of Budapest’s most elegant and lively areas — centered around the grand Andrássy Avenue, a UNESCO World Heritage Site lined with embassies, designer boutiques, cafés, and theaters.
This district blends culture and convenience, home to the Hungarian State Opera House, House of Terror Museum, and plenty of stylish bars and restaurants tucked into side streets.
It’s also within easy walking distance to both the Jewish Quarter and Heroes’ Square, making it a great base for exploring the city.
🛌 My top picks >> W Budapest Hotel is one of my favorites in the city. It is so nicely done, but more on that below. For a more affordable option, check out the sleek and modern Collect Residence.
✅ Central location with great public transport
✅ Elegant architecture and cultural landmarks
✅ Many boutiques and luxury stores
✅ Walkable to many major attractions
❌ Noisy along Andrássy Avenue and main roads
❌ Some areas feel more commercial than local
District VIII (Józsefváros – Palace District)
District VIII, or Józsefváros, is one of Budapest’s most diverse and evolving neighborhoods. Once known for being a bit rough around the edges, parts of the district — especially around Palace Quarter — have gone through a big transformation in recent years.
Here you’ll find grand old buildings, charming courtyards, local cafés, and a more authentic, less touristy vibe than in the city center.
It’s also home to the Hungarian National Museum and several universities, which give the area a youthful energy. However, some streets further from the center still feel quite local and less polished, so the experience can vary block by block.
🛌 My top pick >> Brody House Boutique Hotel
✅ More affordable accommodation options
✅ Authentic local atmosphere with fewer tourists
✅ Up-and-coming café and restaurant scene
✅ Still walkable to most attractions
❌ Some areas feel run-down or less safe at night
❌ Not as charming or scenic as some other areas
District IX – (Ferencváros)
District IX, or Ferencváros, starts at the Central Market Hall and stretches south along the Danube, becoming more residential (and peaceful) the further you go.
The district is known for its riverside views, modern apartment buildings, and up-and-coming vibe, with plenty of new restaurants, bars, and cultural spaces popping up.
I haven’t actually stayed here myself yet, but I’ve visited several attractions in the area — including the Unicum Museum and the Great Market Hall, one of my favorite spots in Budapest for local food and souvenirs.
Ferencváros offers a quieter base while still being within easy reach of the city center, either by public transport or even on foot if you don’t mind a bit of walking.
Luxury hotels in gorgeous buildings
As you know by now, I’m a huge lover of old-world architecture. Nothing makes me happier than intricate stone carvings, tall ceilings, rosettes and herringbone parquet flooring.
So while I normally prefer to stay in smaller boutique hotels, in Budapest I like to splurge. At least for a night or two. These are the most spectacular hotels I have found:
🌟 W Budapest Hotel is a remarkable fusion of historical grandeur and 60s shapes and colors, set within the illustrious walls of Drechsler Palace. This architectural gem is a stunning example of neo-Renaissance design, originally constructed at the turn of the 20th century. The interior has recently been redone, and it’s so good!
🌟 Anantara New York Palace Hotel is set in the same building as the famous New York Café. Originally built in 1894 as the headquarters for the New York Life Insurance Company, it showcases the opulence of the era with its ornate façade, exquisite Italian Renaissance-style architecture, and lavishly decorated interior.
🌟 The Four Seasons Hotel in Budapest is a true architectural masterpiece, a beacon of luxury set within the stunning Gresham Palace. This Art Nouveau landmark, built in the early 20th century, was originally constructed as an opulent office and apartment building for the Gresham Life Assurance Company of London.
It has since been meticulously restored to its former glory and now serves as one of the city’s most prestigious hotels. The hotel’s prime location at the foot of the iconic Chain Bridge offers breathtaking views of the Danube River and the hills of Buda.
How to get around
One of the best things about Budapest is how walkable it is — especially if you’re staying in the central districts (V, VI, or VII). Most of the main attractions are within a 20–30 minute walk of each other, and strolling across the Danube bridges is an experience in itself.
For longer distances, the public transport system is excellent and easy to use. You can now buy tickets directly from the BudapestGO app, which covers the metro, trams, and buses — no need to hunt for paper tickets anymore.
If you prefer a quick and comfortable ride, Bolt is the most reliable ridesharing app in the city (and usually cheaper than taxis).
And for something a bit more active, try MOL Bubi, Budapest’s public bike-sharing program, with bright green bikes you can pick up and drop off at stations all over the city.
💰 Remember >> Hungary uses the forint (HUF), not the euro — though some tourist spots may accept euros (with a bad exchange rate). Most places now accept cards.
READY TO BOOK YOUR BUDAPEST GETAWAY?
📲 Don’t forget an eSIM: I use Airalo (code: NEWTOAIRALO15)
🎫 Best guided tour: Budapest Essentials Private Tour
🚖 Airport transfers: I always use Welcome Pickups
🚙 Intercity transfers: I love Daytrip (you can add stops)
🏡 Housesitting (stay for free): Check out Trusted Housesitters
💍 My favorite jewelry for travel: I only wear Atolea (15% off use: SUNSHINE15)
🌟 Read next >> 3 days in Budapest: Everything I’d do again as a first-timer
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