Best Area to Stay in Budapest – Best Hotels & Travel Tips

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Budapest is the beautiful Eastern European city on the banks of the wide Danube River. Figuring out where to stay in Budapest during your trip doesn’t have to be a challenge.

Hungary’s capital is a tale of two cities and many districts. On one side of the river, you have Buda and on the other, Pest. Together, these two rival cities united in the 19th century to form the city we know today as Budapest.

Both sides of the river have their own history and unique character. Pest is flat and sprawling, comprises the majority of the city’s districts and population and is known to tourists and locals alike for its colorful nightlife and busy streets.

Buda is the more elegant side of the city, a hilly rise that towers over Pest. This side of the city was historically the domain of Hungarian Kings and Queens, where the rich built castles on the hill and where today the President of the country still resides.

Buda is home to magnificent architecture, museums, and fancy accommodation, but the streets are quiet and more reserved in comparison to the livelier Pest across the river.

On top of being divided by the Danube, the city is divided into many unique districts.

Each has its own style and charm. These districts are labeled numerically from I through to XXIII and it can be a bit of a challenge deciding which district will best suit your trip.

To help you out, here’s our complete guide which districts have the most character and which hotels we rate the best.

Don’t leave home without: Lonely Planet Budapest & Hungary (Travel Guide)


Where to Stay in Budapest: Best Districts & Hotels


Castle Hill – District I


Castle Hill - District I - Where to Stay in Budapest

Budapest’s first district comprises the UNESCO World Heritage-listed area of Castle Hill. This is the most historic area of the city and is found on the Buda side of the Danube where old, cobbled streets rise uphill through winding medieval alleys.

There are museums, the old Royal Palace and more to explore, but prices tend to be higher here than in other districts.

Although full of tourists during the day, District I is quiet in the evenings, making it perfect for those looking for a peaceful getaway in an elegant setting.

Top luxury hotels we recommend in District I:

Top mid-range hotels we recommend in District I:

Top budget hotels we recommend in District I:

Top hostels we recommend in District I:


District V – Downtown


District V - Downtown in Budapest

District V is Budapest’s downtown area, directly across the river from Buda and the site of the country’s parliament, government buildings, and financial centers.

It’s a very affluent, upmarket area, perfectly located to explore all of the city’s attractions.

Of course, being the real center of life in Budapest, accommodation, and hotels situated in District V do of course come with a high price tag, but they also offer unquestionable convenience.

Top luxury hotels we recommend in District V:

Top mid-range hotels we recommend in District V:

Top budget hotels we recommend in District V:

Top hostels we recommend in District V:


District VI – Terézváros


District VI - Terézváros in Budapest

District VI is known for the long, busy and bustling Andrassy Avenue that cuts through its middle and is the life and soul of the area. The avenue is incredibly historic and has even been listed as a UNESCO World Heritage Site.

Marvelous Hungarian architecture and fashionable shops face out onto the street, while beautiful trees line the boulevard as it stretches from the center of Budapest to the famous Hero’s Square.

If you are into shopping or would love to be walking distance to the famous Széchenyi Baths then this is the district to consider when deciding where to stay in Budapest.

Top luxury hotels we recommend in District VI:

Top mid-range hotels we recommend in District VI:

Top budget hotels we recommend in District VI:

Top hostels we recommend in District VI:


District VII – Erzsébetváros


Ruin bar in Budapest

Erzsébetváros is traditionally known as the Jewish District, being home to Synagogues and Kosher shops, but in recent years the area has become more well known for its creative and ever famous Ruin Pubs.

If you’re wondering where to stay in Budapest for nightlife, then this is your district, as the many bars and pubs stay open long into the night.

Top luxury hotels we recommend in District VII:

Top mid-range hotels we recommend in District VII:

Top budget hotels we recommend in District VII:

Top hostels we recommend in District VII:


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About David Stock

I have always been an outdoorsman so becoming an adventure traveler was just the next natural step. I love nature, I love to get off the beaten path and I like to explore. I enjoy scuba diving and cars. And yes, Lina and I have a naked dog.



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