Where to stay in Budapest – a guide to the best areas and neighbourhoods

Uncover the most celebrated places to stay, from palace hotels to characterful boutique hideaways, in this historic city of two halves

Since emerging from behind the Iron Curtain, Budapest has become one of the best-loved spots in Europe for a short break. It’s a city of two halves – and several faces. On the western side of the Danube is Buda, home not only to the cobbled alleys of the medieval Castle District but leafy nature trails in the hills beyond. Pest, spreading from the eastern bank, is the cosmopolitan heartland, a patchwork of neighbourhoods with very different characters, from the handsome tourist thoroughfare of Váci Street to the Jewish District, with its colourful ruin pubs.
And there’s no less variety in Budapest’s visitor accommodation. You’ll find international luxury brands with all the five-star trimmings, boutique properties in 18th-century mansions, and good-quality hostels. Where you choose to stay depends on your mood and pocket, but you’ll rarely be far from the action – this is a compact city with excellent public transport. Read on to discover where to stay in Budapest for your city break.

Every hotel in this curated list has been visited by one of our expert reviewers, who are usually hosted on a complimentary basis. They stay for a minimum of one night, test at least one meal and trial other experiences that the hotel might have to offer.

The Castle District is the city’s historic heartland, home to the former royal palace and site of many an epic battle over the centuries. Today the main battle is avoiding the crowds of visitors flocking to see the National Gallery, the extravagant Matthias Church and the views from the castle walls. Come at the start or end of the day to enjoy quieter strolls around the district’s cobbled alleys.

8
Telegraph expert rating

District V (generally referred to as downtown) lies along the Pest side of the river, and is where much of the action can be found. It’s not only the country’s political and economic powerhouse – holding the Parliament building and banking quarter – but one of the best places to stay in Budapest for nearby restaurants, bars and cafés. The pedestrianised Váci Street is lined with boutiques selling clothes and jewellery, while the lively Vörösmarty Square and looming St Stephen’s Basilica are tourist favourites.

9
Telegraph expert rating

8
Telegraph expert rating

Theresa Town (District VI) straddles the Great Boulevard, and has the city’s grandest road running through its middle. Andrássy Avenue – a Unesco World Heritage Site – is a broad, elegant thoroughfare linking the city centre with Heroes’ Square and City Park. Along its length you’ll find the ornate Budapest State Opera House, the chilling House of Terror (in the former headquarters of the secret police), and the pocket of vibrant café-bars in Liszt Ferenc Square.

8
Telegraph expert rating

7
Telegraph expert rating

8
Telegraph expert rating

Elizabeth Town (District VII) contains the city’s Jewish quarter, its jewel in the crown the Great Synagogue – the second largest synagogue in the world and an architectural masterpiece capped with Moorish minarets. Craftsmen from goldsmiths to tailors still work in this area, but increasingly it’s better known as one of the best Budapest districts for trendy nightlife. Gozsdu udvar, a complex of several linked courtyards that once held artisan workshops, is now given over to a lively collection of bars and restaurants.

9
Telegraph expert rating

8
Telegraph expert rating

If you want a comprehensive sweep through Hungarian history, head to Joseph Town (District VIII) and the country’s biggest museum – indeed, the frescoed interior of the National Museum is worth the ticket price alone. There’s history too in the Kerepesi Cemetery, its peaceful, chestnut-lined paths winding past mausoleums of the great and good.

7
Telegraph expert rating

8
Telegraph expert rating

9
Telegraph expert rating

Trending now