Where to Stay in Budapest for First Time Travelers

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Last Updated on October 6, 2025 by sydabroad

Wondering where to stay in Budapest? Then keep reading! 

This guide is for first-time travelers visiting the lovely city of Budapest and looking for the perfect area and accommodation to stay in. Choosing the right place to stay really matters if you want to make the most of your time in Budapest. Especially if you have only a couple of days.

Finding the right hotel, Airbnb, or hostel is always important so you can see everything you want in the city without having to spend too much time on transportation. I love staying as central as possible in any city to be close to many of the major attractions, especially in European cities, where the old towns and squares are always so enjoyable to explore. 

The Danube River runs right through the city of Budapest, splitting it into two main parts. Budapest is made up of Buda and Pest. Buda is on the west side and Pest is on the east. I’ll explain more about what makes each side unique later in this guide. 

Anyway, if you want to find out everything you need to know about booking the perfect place to stay in Budapest, keep reading! I’ll cover the best areas to stay in and the best accommodation options for every budget. 

Although this guide is written for first-time travelers, whether it’s your first time in the city or your 10th, you should find this helpful! I’ve included a map with all of the hotels I’ve mentioned in this guide, along with links so that it’s easy for you to check availability, rates, and book the perfect hotel in Budapest. 

Alright, let’s get into the best places to stay in Budapest, Hungary!

Looking for more Budapest guides?

• Is Budapest Worth Visiting? 8 Reasons to Visit
• 16 Best Things to Do in Budapest, Hungary | Travel Guide

Buda vs. Pest

The city is split into two main parts, Buda and Pest. The Danube River runs right through the city, and you’ll find Buda on the west side and Pest on the East side. 

Buda is where the stunning Buda Castle is located, along with Fisherman’s Bastion (a must-visit in Budapest), and it’s also the more hilly side of the two. On the other hand, Pest is flat and very lively; it’s filled with bars, restaurants, and nightlife. You’ll also find the iconic Parliament Building on the Pest side. 

You have to make sure to visit both sides while you are in Budapest. Each offers its own unique vibe and some of the city’s most iconic sites that you can’t miss. Buda and Pest are connected by several bridges, but the most famous is the Chain Bridge. 

Planning your trip? You can learn more about the best things to do in Budapest here!✨

Best Neighborhoods to Stay in Budapest 

There are quite a few areas in Budapest where you can choose to stay. There’s no question that you have to explore both the Buda and Pest sides, but depending on your travel style, it’s where you’ll want to stay. 

Buda tends to be quieter, while Pest is a bit more lively and has more nightlife options. For families, you’ll likely want to stay on the Buda side. However, if you are looking to enjoy the city’s nightlife, then the Pest side is probably for you.

Here’s a quick rundown of the best areas to stay in Budapest:

• District V (Belváros): Best for first-time travelers and most tourists. 
• District I (Buda Castle District): A historic and peaceful area, great for families. 
• District VI (Terézváros): Best for culture, art, and shopping. 
• District VII (Erzsébetváros – The Jewish Quarter): The best area for nightlife. 
• District VIII (Józsefváros): The best area for travelers on a budget.
• District XIII (Újlipótváros): A trendy and local area, also great for families. 

Need packing help? Click here for the perfect backpacking Europe packing list for female travelers!

Where to Stay in Budapest For First-Time Visitors

District V (Belváros) | Best Overall

If it’s your first time in Budapest, Belváros is the perfect home base. It’s located on the Pest side, right in the center of many top attractions. You can walk to the Hungarian Parliament Building, St. Stephen’s Basilica, and the Danube Promenade. 

You’ll also have endless options when it comes to cafes, bars, shops, and restaurants. If convenience is your number one priority, then District V is a great place to stay. It’s also well connected by public transport, making it easy to explore elsewhere.

Pros: 

• Very central location
• Plenty of restaurants, cafes, and shops 
• Great public transport connections
• Safe and convenient for sightseeing

Cons:

• More expensive area for accommodation 
• Can feel busy and touristy 
• Less of a “local” vibe 

Nearby attractions: Hungarian Parliament Building, St. Stephen’s Basilica, Shoes on the Danube Memorial, Danube Promenade

Budget options:

Lavender Circus Hostel: For those on a budget wanting to stay in a central location, this property is a great option.

Adagio Hostel Basilica: This is another great option for those looking for something a bit more affordable yet still in a central location.

Boutique/Luxury options: 

Matild Palace: This is a stunning luxury hotel in Budapest that’s centrally located with gorgeous rooms and a beautiful rooftop terrace.

Three Corners Downtown Hotel: This is a lovely boutique hotel near St. Stephen’s Basilica. It’s conveniently located so that you can reach many of Budapest’s main attractions.

Search for more places to stay in Belváros here 

District I (Buda Castle District) | Best for Families

The Buda Castle District is located on the Buda side and is known for being quieter and more peaceful compared to Pest. There are also quite a few historic sites here, including Buda Castle, Fisherman’s Bastion, and Matthias Church. 

The Castle District is scenic, safe, and offers the most incredible views of the Pest side from across the river. This makes it perfect for families who prefer a quieter stay while still being in a great location. 

Pros: 

• Quiet and family-friendly atmosphere
• Beautiful views over Pest and the river 
• Close to historic landmarks 

Cons:

• Less nightlife and fewer restaurant options compared to Pest
• More hilly and less convenient for transport 
• Limited accommodation options

Budget options:

Váralja Home: For a homey stay, check out this apartment-style boutique hotel.

Boutique/Luxury options: 

Hotel Clark: This is a chic, adults-only hotel with stunning views over the Danube right near the Chain Bridge.

Boutique Hotel Victoria: If you want a panoramic river view, the Boutique Hotel Victoria has gorgeous views in every room.

Pest-Buda Design Hotel: This is one of the city’s oldest inns, located right near the Matthias Church.

Nearby attractions: Buda Castle & Castle Hill, Fisherman’s Bastion, Matthias Church, Hospital in the Rock Museum

Search for more places to stay in the Buda Castle District here.

District VI (Terézváros) | Best for Culture, Art, and Shopping

Terézváros is also a popular place to stay in Budapest. It’s home to Andrássy Avenue, which is a UNESCO World Heritage Site lined with beautiful townhouses, designer shops, and some of Budapest’s best cafes and restaurants. 

This area is also very centrally located and close to some of the iconic sites in Budapest, such as Heroes Square, City Park, and the Hungarian State Opera House. It’s a good choice if you want to be central but slightly away from the busiest tourist areas. There’s a bit of everything in District VI — cultural landmarks, great public transportation, and a wonderful dining & shopping scene. 

Pros: 

• A great mix of shopping, dining, and cultural attractions
• Central but slightly less busy than District V
• Easy access to City Park and Heroes’ Square

Cons:

• It can be loud along the main streets 
• Accommodation can be expensive 
• There is not as much nightlife compared to District VII

Budget options:

Avenue Hostel: This is a popular, social hostel, great for budget travelers who want to stay near all the action.

Boutique/Luxury options: 

Hotel Oktogon Haggenmacher: A stunning hotel located in what used to be the Haggenmacher Palace.

W Budapest: A beautiful luxury hotel located inside a historic palace on Andrássy Avenue.

Hotel Moments Budapest: A mix of elegance and modern style in an amazing location right along Andrássy Avenue.

Nearby attractions: Andrássy Avenue, Hungarian State Opera House, Heroes’ Square, City Park (Városliget)

Search for more places to stay in the Terézváros district here.

District VII (Erzsébetváros – The Jewish Quarter) | Best for Nightlife 

If you plan on experiencing Budapest’s iconic nightlife, you may want to consider District VII. The Jewish Quarter is known for its ruin bars, street art, and vibrant nightlife scene.

This is definitely the energetic heart of Budapest, and you’ll find the famous Szimpla Kert ruin bar here, trendy restaurants, and some of the city’s best clubs. During the day, you’ll find trendy cafes and fun boutiques. 

Pros: 

• Lively atmosphere with ruin bars, clubs, and trendy restaurants
• Budget-friendly hostels and accommodation 
• Great place for younger travelers who want to meet people

Cons:

• It can be very noisy at night 
• This area is crowded and busy, especially on weekends 
• It’s not ideal for those seeking peace and quiet

Budget options:

Ibis Hotel Budapest: These are super basic but reliable and affordable. I’ve stayed at an Ibis property in both London and Dublin, and the room was just what I needed.

Made Inn Budapest: Again, basic, but a comfortable guesthouse in the heart of the Jewish Quarter.

Maverick Budapest Soho: A trendy, social hostel ideal for young travelers and digital nomads.

Boutique/Luxury options: 

Hotel Memories Budapest: A boutique-style hotel with close to nightlife and the Great Synagogue.

Continental Hotel Budapest: This is a 4-star property blending Art Nouveau architecture with modern luxury.

Nearby attractions: Ruin bars, Hungarian Jewish Museum, the Great Synagogue, Gozsdu Courtyard

Search for more places to stay in the Jewish Quarter here.

District VIII (Józsefváros): The best area for travelers on a budget

For budget-friendly accommodation, Józsefváros is the place to be. Although it’s a bit outside the main touristy areas, it’s still a great place to stay, and you’ll find plenty of affordable hostels, guesthouses, and apartments here.

This neighborhood has undergone a lot of development in recent years, with new cafes and cultural spots popping up left and right. For those who are looking for a more local feel and have a tighter budget, District VIII is perfect. 

Pros: 

• Affordable accommodation compared to the central districts
• Less touristy, more of a local vibe
• Good public transportation

Cons:

• Some areas still feel a bit run-down 
• There are fewer major attractions nearby 
• Not as scenic as other districts in Budapest

Budget options:

Intercity Hotel Budapest: This is a good-value, modern hotel near Keleti Station. Perfect for those who are arriving by train or need quick transportation connections.

House Beletage Boutique Hotel: A stylish 4-star property, and yet still with very affordable rates.

Boutique/Luxury options: 

Kozmo Hotel Suites & Spa: This is one of the city’s most luxurious hotels with spacious rooms and even a wellness area.

Brody House: Brody House is a creative, art-inspired hotel with individually designed rooms and a bohemian atmosphere.

Nearby attractions: National Museum, Palace District, Rákóczi Square Market Hall

Search for more accommodation options in Józsefváros here.

District XIII (Újlipótváros): A trendy and local area, also great for families. 

Just north of the city center, you’ll find Újlipótváros, which has become one of Budapest’s trendiest neighborhoods. It’s more relaxed and less touristy compared to downtown. And there are plenty of modern restaurants, specialty coffee shops, and cafes. 

Margaret Island, a very peaceful park, is also nearby. Újlipótváros is a great choice if you want something trendy and a bit off the beaten path. 

Pros:

• Local atmosphere with Bauhau-style architecture and boutique cafes 
• Close to Margaret Island for nature and family activities 
• Trendy restaurants and a less touristy feel 
• More relaxed compared to downtown

Cons:

• A bit farther from the main tourist sites 
• Limited nightlife compared to the central districts 
• Less variety of hotels here

Budget options:

Island Hostel: A riverside hostel on Margaret Island with a nice, relaxed vibe.

Boutique/Luxury options: 

Four Points by Sheraton Budapest Danube: A beautiful riverside hotel with modern rooms and great city views.

Danubius Hotel Helia: This is a classic wellness hotel overlooking the Danube. featuring a spa and pools.

Nearby attractions: Margaret Island, Danube riverfront promenade, Bauhaus architecture street, Comedy Theatre of Budapest, Pozsonyi Road

Find more places to stay in Újlipótváros here.

FAQs | Where to Stay in Budapest? 

Which part of Budapest is best to stay in? 

• District V for first-time travelers and most tourists. 
• District I for history and a peaceful area. 
• District VI for culture, art, and shopping. 
• District VII for nightlife. 
• District VIII for travelers on a budget.
• District XIII is a trendy and local area. 

Is Budapest a walkable city? 

Yes! Especially in the central districts. Many of the city’s top attractions are within a short distance of each other on the Pest side. The many bridges make it easy to cross between Buda and Pest on foot, and walking will give you the best views of the gorgeous architecture. 

That said, there are some areas outside of the central districts that are worth visiting, but are not quite as walkable. In that case, hop on the metro, tram, or bus — public transport is affordable and efficient in Budapest. 

If you plan to stay in hostels, here is a list of things you can’t forget to pack!

Which side of Budapest is best? 

I think both sides are incredible. But this entirely depends on your travel style. 

Pest is east of the Danube and is flat, lively, and where you’ll find most nightlife, restaurants, shopping, and many major landmarks.

Buda is west of the Danube and hillier, quieter, and more residential. There are also some incredible landmarks, such as Buda Castle and Fisherman’s Bastion. 

What is the main tourist street in Budapest?

The main tourist street in Budapest is Váci Street (Váci utca), located in District V. It’s lined with cafes, shops, and restaurants, and is the perfect place for people-watching. 

Where to Stay in Budapest | Map 

So, where to stay in Budapest? I hope this answered your question! Make sure to check out my other guides to Budapest to plan your trip. And if you have any questions about where to stay in Budapest, comment below or DM me on Instagram!

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