Budapest might just be one of the best cities in Europe. It’s got character, impressive architecture and a youthful atmosphere.

You can go wine tasting, soak in a thermal bath, visit castles, and learn more about Budapest at one of the many fascinating – albeit historically dark – museums.

With so much to do and see, Budapest is quickly gaining popularity on everyone’s European backpacker itinerary. This guide will help you decide where to stay in Budapest depending on your budget and travel-style, so that you can make the most of your trip!

Top Places to Stay in Budapest

Looking for a specific place to stay in Budapest? These are our highest recommendations for places to stay in Budapest.

Best Airbnb in Budapest: Centrally located apartment for 2 or 4

Centrally located apartment for 2 or 4

Located seconds away from the UNESCO World Heritage Site and the Budapest Terez Korut, this apartment is perfect anyone visiting Budapest for the first time. It’s also close to restaurants, bars and shops, and comes with a fully equipped kitchen, wifi, and air-con.

Best Hostel in Budapest: Good Vibe Hostel

Good Vibe Hostel

This is the best place to stay in Budapest for solo travelers and backpackers alike. This hostel is close to everything, from the city’s coolest ruins to thermals baths and the Chain Bridge. Well equipped with everything you might need, this hostel offers private and shared rooms that are comfortable and clean.

Best Hotel in Budapest: Iberostar Grand Hotel Budapest

Iberostar Grand Hotel Budapest

Luxurious and refined, the Iberostar Grand Hotel Budapest is the best hotel in the city. Located in the Belváros district, this five-star hotel has spacious rooms equipped with a variety of modern amenities. Enjoy a relaxing steam or drinks on the terrace after a long day of exploring.

Budapest Neighborhood Guide

FIRST TIME IN BUDAPEST
Varkerulet, Budapest
FIRST TIME IN BUDAPEST

Várkerület

District I Várkerület, or the Castle District, is one of the most iconic neighbourhoods in Budapest. Located on the Buda side of the River Danube, this district offers quaint cobblestone streets, grand medieval architecture and picturesque views.

ON A BUDGET
Terézváros, Budapest
ON A BUDGET

Terézváros

District VI, Terézváros, is one of the smallest yet most densely populated neighbourhoods in Budapest. Located on the Pest side of the Danube, this lively district is a hub of excitement and activity.

NIGHTLIFE
Erzsebetvaros, Budapest
NIGHTLIFE

Erzsébetváros

The smallest district in Budapest, District VII Erzsébetváros packs a big punch. The city’s historic Jewish Quarter, this central neighbourhood is home to a number of heritage, cultural and religious sites, including several notable synagogues.

COOLEST PLACE TO STAY
Jozsefvaros, Budapest
COOLEST PLACE TO STAY

Józsefváros

A few years ago, travellers would have avoided Budapest’s District VIII Józsefváros at all costs. Rough and dangerous, it was not a nice place to visit. Thanks to an influx of stylish bars, trendy restaurants and independent boutiques, Józsefváros is now one of the hottest neighbourhoods in the city.

FOR FAMILIES
Belvaros, Budapest
FOR FAMILIES

Belváros

Located on the eastern edge of the River Danube, Belváros or Pest is the downtown and heart of the city. One of the biggest neighbourhoods in Budapest, this is where you’ll find a variety of historic and cultural attractions, including the Parliament Building, the Chain Bridge, and the Central Market Hall.

Grand and magnificent, Budapest is a jewel on the River Danube. The capital city is known for its impressive architecture, historical attractions, youthful atmosphere and vibrant nightlife.

To the west of the River Danube is Várkerület. The Castle District of Budapest, this neighbourhood is famous for stunning landscapes, ornate palaces and impressive views. With so much to explore, it’s the best district for those backpacking Budapest for the first time.

If you’re traveling on a budget, District VI is a popular area that provides wallet-friendly accommodation. Known as Terézváros, it’s close enough to the best sights of Budapest that you won’t have to make any unnecessary sacrifices.

For the best nightlife, stay in District VII or Erzsébetváros. Full of the best bars, restaurants and clubs in the area, it’s a great place to stay if you want to meet like-minded travelers.

Józsefváros, also referred to as District VIII, is the coolest area to stay in Budapest. It’s an up-and-coming area of the city containing a combination of the old and ruined with contemporary and stylish shops, bars and restaurants.

Finally, District V (aka Belváros or Pest) is the downtown and modern heart of the city. This neighbourhood is home to great restaurants, impressive architectures, and a number of key cultural and historic sights. It’s a great all-rounder, and our top recommendation for families visiting Budapest.

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5 Best Neighborhoods to Stay in Budapest

Whether you’re just visiting for the weekend or planning to stay for longer, read on to learn more about the best five neighbourhoods in Budapest.

1. District I / Várkerület (Buda) – Where to Stay in Budapest for your First Time

District I Várkerület, or the Castle District, is one of the most iconic neighbourhoods in Budapest. Located on the Buda side of the River Danube, this district offers quaint cobblestone streets, grand medieval architecture and picturesque views.

Well connected to Pest via public transit, this district is the ideal base for first-time visitors. Popular during the day but peaceful at night, this district is a relaxing oasis in the city. Enjoy the city’s top attractions, great restaurants and panoramic views right on your doorstep.

Varkerulet, Budapest
Budapest is one of the coolest cities in Europe

Best Airbnb in Várkerület: Centrally located apartment for 2 or 4

Centrally located apartment for 2 or 4

Located seconds away from the UNESCO World Heritage Site and the Budapest Terez Korut, this Airbnb in Budapest is perfect anyone visiting for the first time. It’s also close to restaurants, bars, shops and public transport.

The apartment comes with a fully equipped kitchen, wifi, and air-con – so you can enjoy a comfortable stay in the heart of the city.

Best Hostel in Várkerület: Shantee House

Shantee House

This quirky hostel in Budapest is close to local attractions as well as public transport so you can travel further afield. Private and dorm rooms are available – but the highlight is the Mongolian Yurt-tent which provides comfortable accommodation during the summer months. The hostel provides a full kitchen, free wifi and hot drinks, and is pet-friendly upon request. A perfect all-rounder!

Best Hotel in Várkerület: Buda Castle Fashion Hotel

Buda Castle Fashion Hotel

Just steps from Buda Castle, this four-star hotel offers guests stylish and spacious rooms equipped with plasma TVs, bottled water and free wifi. Enjoy a delicious meal at the hotel restaurant or nightcap in the chic lounge bar.

Best Hotel in Várkerület: Boutique Hotel Victoria Budapest

Boutique Hotel Victoria Budapest

On the shores of the Danube, this delightful boutique hotel has stunning views of the river and Pest. The city’s top attractions, including Buda Castle and the Chain Bridge, are just a short walk away. Modern and stylish, this hotel boasts a day spa, sauna and massage service, ideal for unwinding after a day of adventures.

Things to See and Do in Várkerület

  • Marvel at the neo-Gothic and neo-Romanesque architecture of Fisherman’s Bastion. Walk along the terrace and take in the amazing views of the Danube and Pest.
  • Wander throughout Buda Castle, the Hungarian Royal Palace which is home to the National Gallery and Budapest History Museum.
  • Climb (or drive) to the top of Gellért Hill and enjoy panoramic views of the city.
  • Pay tribute to those who sacrificed their lives for independence at the Liberty Statue.
  • Explore the Citadel, a 19th-century fortification that sits atop Gellért Hill.
  • Warm up with a cup of coffee at Ruszwurm coffeehouse, one of the oldest cafes in Budapest.
  • See the intricate detail and curious architecture of Matthias Church.
  • Explore the Hospital in the Rock Nuclear Bunker, a World War II hospital situated in the caverns under Buda Castle. Now a museum, it features waxwork re-creations and authentic equipment.
  • Soak in Rudas Baths and feel relaxed and rejuvenated after a long day of sightseeing.

2. District VI / Terézváros – Where to Stay in Budapest on a Budget

District VI, Terézváros, is one of the smallest yet most densely populated neighbourhoods in Budapest. Located on the Pest side of the Danube, this lively district is a hub of excitement and activity.

From backpacker hostels to boutique hotels, there’s something for travellers of all styles and budgets here. If you’re trying to cut costs down in Budapest, though, this is where you’ll find a bunch of the budget gems!

Terezvaros, Budapest
Budapest has a rich history waiting to be discovered

Best Airbnb in Terézváros: Cozy Home for 4

Cozy Home for 4

This apartment located in the city center has two bedrooms sleeping up to four guests. It has a living room, kitchen, and bathroom with all the essentials.

The best thing about this apartment is its location. It’s close to some of the best places to visit in Budapest, including the Basilica, Chain Bridge, Vörösmarty square and the Parliament.

Best Hostel in Terézváros: Good Vibe Hostel

Good Vibe Hostel

This hostel in Budapest is close to the city center and local amenities. Well equipped with everyone you might possibly need, this hostel has private and shared accommodation options available.

Best Hotel in Terézváros: 12 Revay Hotel

12 Revay Hotel

Modern and spacious, 12 Revay Hotel is one of the best value hotels in Budapest. Surrounded by bars, shops and restaurants, this hotel is conveniently located near Terézváros’ top attractions.

With 56 recently refurbished rooms, this three-star hotel offers guests a comfortable and relaxing base in the heart of the city.

Best Hotel in Terézváros: Star Inn Hotel Budapest Centrum by Comfort

Star Inn Hotel Budapest Centrum by Comfort

Rest and recharge after a day of sightseeing at the Star Inn Hotel Budapest. Located in the Terézváros district, this three-star hotel is within walking distance of Heroes Square and the House of Terror.

Guests can relax in the garden or enjoy a unique meal at the on-site restaurant. The hotel also offers a continental breakfast each morning, and there are plenty of cafes nearby.

Things to See and Do in Terézváros

  • Dive deep into Hungary’s communist and fascist history at the House of Terror Museum.
  • Enjoy a cosy atmosphere and great cocktails at Tuk Tuk Bar.
  • Wander along the iconic Andrassy Avenue, a UNESCO World Heritage Site.
  • Dine on a delicious dishes and a variety of cuisines at an affordable price at Vakvarjú Restaurant.
  • Savour that first sip of coffee and a stellar pastry at Bite Bakery Café.
  • Get back to nature and take a relaxing stroll through Városliget, one of the largest public parks in the city.
  • Stand at the centre of Heroes Square, a massive statue complex featuring the Seven Chieftains of the Magyars and other iconic Hungarian leaders.
  • See works of art by local artists at abc Galéria.
  • Kick back and enjoy a pint at Kertem, an outdoor beer garden with a lively atmosphere.
  • Visit all the best pubs and bars by taking a free pub crawl tour of Budapest.

3. District VII / Erzsébetváros – Where to Stay in Budapest for Nightlife

Budapest is one of the best party cities in Europe – and the smallest district in Budapest, District VII Erzsébetváros packs a punch. As the city’s historic Jewish Quarter, this central neighbourhood is home to a number of heritage and religious sites, including several notable synagogues.

Erzsébetváros is also the best area to stay in Budapest for nightlife thanks to its trendy bars, vibrant clubs, and rustic street food. If you’re looking for a great night out in Budapest, Erzsébetváros is the place to be.

Erzsebetvaros, Budapest
Erzsébetváros is our top pick for nightlife

Best Airbnb in Erzsébetváros: Newly renovated boutique apartment

Newly renovated boutique apartment

This newly renovated flat with a Parisian feel is centrally located near quirky bakeries and a hand-crafted chocolate artisan. The metro station is 150m away, taking you straight to the Ruin Pub Zone. The apartment has self-check-in and every amenity you can possibly need for your stay, including a washer and dryer.

Best Hostel in Erzsébetváros: Hostel One Budapest

Hostel One Budapest

Keep the good vibes going all day long at Hostel One, a lively and social party hostel in Budapest. Surrounded by ruin bars, clubs and restaurants, this hostel is within walking distance of Budapest’s best nightlife spots. Enjoy clean and comfortable dorms and a fun atmosphere at this conveniently located hostel.

Best Hotel in Erzsébetváros: Continental Hotel Budapest

Continental Hotel Budapest

Enjoy four-star accommodation in the heart of Budapest’s party district at the Continental Hotel Budapest. Featuring a relaxing wellness centre, guests can rest up after a night on the town in the sauna or by taking a dip in the indoor/outdoor pool. Each spacious room features modern décor, A/C, a mini-bar, and on-demand movies – ideal for the morning after a big night.

Best Hotel in Erzsébetváros: Queen’s Court Hotel & Residence

Queen's Court Hotel & Residence

The Queen’s Court Hotel & Residence is a five-star property in the Erzsébetváros neighbourhood. Surrounded by restaurants and bars, this luxurious hotel is at the heart of Budapest’s nightlife scene. Enjoy a drink at the bar before a night on the town, and make sure to line your stomach at one of the nearby restaurants!

Things to See and Do in Erzsébetváros

  • Enjoy chic cocktails and stunning décor at the iconic New York Palace.
  • Visit the extraordinary Dohany Street Synagogue, the largest synagogue in Europe, and second largest in the world.
  • Sip sophisticated cocktails at Jardin Bar.
  • Drink, dance, and laugh the night away at Doboz, an open-air ruin bar where the music’s great and the drinks are cheap.
  • Spend a night at Szimpla Kert. Built in a former factory this converted open-air space was the first ruin bar in the city.
  • Savour custom cocktails and a charming atmosphere at Warmup Bar.
  • Enjoy urbane cocktails at Bar Pharma, a stylish speakeasy in the city.
  • Dance the night away at Instant, a forest themed ruin bar with six floors of great drinks and music to choose from.
  • Wander the streets and look at the massive murals and street art that bring life and colour to once mundane grey buildings.

4. District VIII / Józsefváros – Coolest Area to Stay in Budapest

A few years ago, travellers would have avoided Budapest’s District VIII Józsefváros. Rough and dangerous, it wasn’t considered a trip-worthy place. Today, thanks to an influx of stylish bars, trendy restaurants and independent boutiques, Józsefváros has become one of the hottest neighbourhoods in the city.

Popular with students, Józsefváros is a lively and social neighbourhood. Here you’ll find a number of great ruin bars, casual eateries, hip shops and stylish galleries. It’s come a long way, and despite its past is perfectly safe to visit.

Jozsefvaros, Budapest
Józsefváros has been seriously gentrified over the past few years

Best Airbnb in Józsefváros: 19th Century Home in Budapest City Centre

19th Century Home in Budapest City Centre

Built-in 1890, this traditional city house has its own quiet courtyard. The apartment retains many of the original 19th Century architectural features such as the 4-meter high molded ceiling, decorated door panels and large glass doors.

This unique accommodation has a gallery and a kitchenette with all the necessary essentials. Guests can also enjoy wall and floor heating, and complimentary Wifi.

Best Hostel in Józsefváros: Hipster Hostel

Hipster Hostel

Tucked away in Józsefváros, this hip hostel is within walking distance of bars, restaurants and public transport. This hostel has private and shared accommodation and offers different styles of rooms, perfect for singles, couples, and groups. Guests can enjoy free wifi, comfortable beds and a social atmosphere.

Best Hotel in Józsefváros: Eurostars Danube Budapest

Eurostars Danube Budapest

Set at the centre of Budapest, this four-star hotel is close to the city’s main attractions and hottest bars. Each room has free wifi, a mini-bar and a flat-screen TV. Guests can unwind in the stylish lounge or on-site restaurants at the end of an exciting day.

Best Hotel in Józsefváros: Bo33 Hotel Family & Suites

Bo33 Hotel Family & Suites

Modern and spacious, this hotel is a relaxing hideaway in one of Budapest’s most exciting districts. Guests can relax and recover after a night on the town on the rooftop terrace or in the sauna. Enjoy daily breakfast and an on-site bar at this stylish four-star hotel.

Things to See and Do in Józsefváros

  • Take a deep dive into Hungarian history at the Hungarian National Museum.
  • Enjoy a lively atmosphere and delicious food at Zappa Bistro.
  • Dance the night away at Trafik, where DJs spin the best music until the early morning.
  • Browse the racks at Iguana, a high-end thrift shop where you can often find designer labels.
  • Feast on hearty Hungarian fare at Darsham Udvar Etterem.
  • Dine on Eastern-influenced dishes at the rustic and chic Café Csiga.
  • Enjoy a great mix of Hungarian and Jewish cuisines at Fülemüle.
  • Rustic and charming, the courtyard of Gondozo Kert is great for late-night drinks.
  • Drink under the star on the rooftop terrace of Corvinteto, a ruin bar built in a former supermarket.
  • Party late into the night at the Corvin Club, one of Budapest’s most iconic nightclubs.
  • Stop and smell the roses, flora and fauna at the Botanical Garden.

5. District V / Belváros (Pest) – Where to Stay in Budapest for Families

Located on the eastern edge of the River Danube, Belváros or Pest is the downtown and heart of the city. This is where you’ll find a variety of historic and cultural attractions, including the Parliament Building, Chain Bridge, and the Central Market Hall.

Well connected to neighbourhoods throughout the city, Belváros is a great base for families visiting Budapest. The area is within walking distance of many top attractions, so little legs won’t get too tired while exploring this part of the city.

Belvaros, Budapest
A great location near all of the sights – District V is a great area in Budapest for families

Best Airbnb in Belváros: Vintage style downtown family home

Vintage style downtown family home

This vintage downtown house is a unique and bright place located in the heart of Budapest at the end of the Jewish district. It has a fully equipped kitchen and bathroom, and it is suitable for small families that want to explore Budapest with a quiet place to call home.

Best Hostel in Belváros: Pal’s Hostel

Pal's Hostel

Pal’s Hostel offers private rooms at an affordable rate, making it ideal for families with older children visiting the area. The award-winning hostel is within walking distance of the best things to see in Budapest, including the famous Chain Bridge. Pal’s also sells the Budapest card and can help you organise all your activities and excursions.

Best Hotel in Belváros: Iberostar Grand Hotel Budapest

Iberostar Grand Hotel Budapest

Luxurious and refined, the Iberostar Grand Hotel Budapest is the best hotel in the city. Located in the Belváros district, this five-star hotel has spacious rooms equipped with a variety of modern amenities. Enjoy a relaxing steam or drinks on the terrace after a long day of exploring Pest.

Best Hotel in Belváros: SasOne Rooms

SasOne Rooms

Family rooms in the SeasOne are designed for groups of three, comprising one double and one sofa-bed. Each room has a private bathroom and internet access, and breakfast is included in the price. Just 200m from St Stephen’s Basilica and public transport connections, this hotel provides stress-free accommodation for small families exploring Budapest.

Things to See and Do in Belváros

  • Visit the statue of Imre Nagy, a communist Hungarian politician and leader of the Hungarian Revolution against the Soviets.
  • Pack a picnic and spend a relaxing afternoon on Margaret Island, a lush green space located between on the Danube.
  • Stand in awe at St Stephen’s Basilica, a Roman Catholic basilica and architectural masterpiece.
  • Marvel at the impressive Hungarian Parliament building.
  • See the Shoes on the Danube bronze statues that serve as a memorial for 3,500 people who were killed by fascist Arrow Cross militiamen during World War II.
  • Take a night cruise along the Danube and see the city’s most iconic sights illuminated and glowing.
  • Walk across the Chain Bridge that connected Buda and Pest, and one of the most iconic locations in the city.
  • Sample delicious sweets, treats and authentic Hungarian fare at the Central Market Hall.
  • Indulge in a delicious gelato at Gelarto Rosa where the scoops are sculpted into the shape of a flower.
Sunset in Budapest
Sunset in Budapest

FAQ about Finding a Place to Stay in Budapest

Here’s what people usually ask us about the areas of Budapest and where to stay.

Final Thoughts on Where to Stay in Budapest

Budapest is full of charm, history, culture and booze – and has something to suit every traveler. With so much to see and do in Budapest, you’ll be sure to have an amazing time wherever you stay in this stunning city.

If you’re still undecided, we highly recommend Good Vibe Hostel as one of the best hostels in Budapest. If you’re looking for something more luxurious, you can’t go wrong with Iberostar Grand Hotel!

Did we miss anything? Let us know below!

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Getting an estimate from World Nomads is simple – just click the button or image below, fill out the necessary info, and you’re on your way!

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