Where to Stay in Budapest, Hungary: 5 Best Areas & Hotels

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Trying to decide where to stay in Budapest? This guide breaks it down.

Budapest is a city of contrasts, blending historic castle views, lively nightlife, elegant boulevards, and more local, budget-friendly neighborhoods just beyond the main sights. With 23 districts spread across both the Buda and Pest sides of the Danube, choosing the right area can feel overwhelming—especially if it’s your first visit.

After exploring Budapest from multiple angles, we’ve narrowed it down to the five best areas to stay, each suited to a different travel style. Below, we break down what makes each neighborhood unique and share hotel picks we genuinely recommend to help you find the perfect base for your trip. Let’s get to it!

Overview of the Best Areas to Stay in Budapest

Budapest is a city of contrast, split into two distinct sides by the Danube River: Buda and Pest. Buda, on the west side, is home to many of the city’s historic landmarks and quieter, more residential neighborhoods, while Pest, on the east side, feels more lively and modern, with shops, nightlife, and major sights clustered close together.

The city is divided into 23 districts, but most visitors will find themselves choosing between just a handful of the most convenient and well-connected areas. Fortunately, getting around Budapest is easy. Many neighborhoods are highly walkable, and the metro and tram systems make it simple to move between districts quickly and affordably.

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

• District V (Belváros-Lipótváros) – Best for first-time visitors – District V is the best choice for first-time visitors thanks to its central Pest-side location and easy walking access to Budapest’s top landmarks. Kempinski Hotel Corvinus Budapest is a standout luxury option here, offering refined rooms, excellent dining, and spa facilities in one of the most convenient locations in the city.

• District VII (Erzsébetváros) – Best for a lively cultural stay – District VII, aka the Jewish Quarter, is ideal for travelers who want to be surrounded by Budapest’s nightlife, ruin bars, and creative energy while still staying central. Queen’s Court Hotel & Residence is a great mid-range pick, providing spacious suites, a peaceful courtyard, and spa facilities just steps from the action without the late-night noise.

• District I (Budavár) – Best for a historic & quiet stay – District I is the castle district and perfect for travelers who want a quieter, more atmospheric stay surrounded by historic landmarks on the Buda side of the city. Buda Castle Hotel Budapest is a strong mid-range choice here, offering comfortable rooms in a calm setting right inside the Castle District, ideal for evenings away from the crowds.

• District VI (Terézváros) – Best for convenience & sights – District VI strikes a balance between sightseeing and calm, with Andrássy Avenue, the Opera House, and excellent transport links all nearby. Pullman Budapest is a reliable option here, combining modern rooms, soundproof comfort, and a central location that works especially well for first-time visitors.

• District VIII (Józsefváros) – Best for a budget-friendly stay – District VIII (the Palace District) is a great choice for travelers looking to stretch their budget while experiencing a more local side of Budapest, especially around the elegant Palace Quarter. The Amberlyn Suite Hotel stands out with spacious, apartment-style suites, modern amenities, and easy transport connections, making it ideal for longer stays and value-focused travelers.

Where to Stay in Budapest

District V – Belváros-Lipótváros

BEST FOR FIRST-TIME VISITORS 

Pros

• Central location with easy walking access to Budapest’s top landmarks
• Well-connected by metro, trams, and buses for exploring the rest of the city

Cons

• Accommodation and dining tend to be pricier than in the outer districts
• Busy during the day due to government offices and tourist traffic

District V, also known as Belváros–Lipótváros, is Budapest’s historic and political core and one of the easiest places to stay for a first visit. Sitting along the Pest side of the Danube, this district puts you right in the middle of the city’s most famous sights, making it ideal for travelers who want to see a lot without spending much time commuting.

This area is especially well-suited to first-time visitors, couples, and anyone planning a short stay. Many of Budapest’s highlights are within walking distance, including the Hungarian Parliament Building, one of the city’s most recognizable landmarks. 

St. Stephen’s Basilica is just a few blocks away and offers panoramic views from its dome, while the Danube Promenade is perfect for scenic walks along the river. The Chain Bridge connects District V directly to Buda, making it easy to explore Castle Hill and Fisherman’s Bastion.

Historically, Lipótváros developed in the 19th century as a financial and government center, which explains its grand architecture and orderly layout. Today, it blends elegant cafés, restaurants, and shops with stately buildings, creating a polished, convenient base for exploring Budapest.

Aria Hotel Budapest – $$$

Tucked just steps from St. Stephen’s Basilica in District V, Aria Hotel Budapest by Library Hotel Collection is a five-star retreat that puts you right in the heart of the city without feeling overwhelming. Even with such a prime location, the hotel feels calm and intimate, making it a great choice for first-time visitors who want luxury without the constant buzz.

This hotel is especially popular with couples and travelers celebrating something special. Rooms and suites are styled around different musical themes, with elegant interiors, spacious marble bathrooms, and thoughtful touches that make the stay feel a little extra. Many rooms even look out over the hotel’s quiet courtyard or Budapest’s historic streets.

Standout perks include a rooftop bar with panoramic city views, complimentary daily breakfast and wine-and-cheese service, and a relaxing spa with an indoor pool and saunas. Rooms generally range from around €330 to €1,000+ per night.

Find the best deals and book this five-star stay here!

If Aria Hotel Budapest is all booked up, Budapest Marriott Hotel is a classic riverfront property with sweeping views of the Chain Bridge and Buda Castle in District V. It’s a solid choice for first-time visitors who want a reliable, comfortable stay with easy access to the Danube Promenade and Budapest’s main sights.

Another great option located directly on the Danube Promenade, InterContinental Budapest by IHG offers one of the most iconic hotel views in the city, facing Buda Castle and the Chain Bridge. This elegant hotel is ideal for travelers who want a refined stay in a prime location, with major landmarks just steps away.

Kempinski Hotel Corvinus Budapest – $$

Kempinski Hotel Corvinus Budapest is a polished hotel in the heart of District V, just a short walk from St. Stephen’s Basilica, the Chain Bridge, and the Danube Promenade. Its central location makes it an easy choice for first-time visitors who want luxury with excellent walkability to major sights.

This hotel suits couples, food lovers, and travelers who appreciate a refined but contemporary atmosphere. Rooms and suites are sleek and comfortable, blending modern design with thoughtful details that make longer stays feel effortless. One of Kempinski’s biggest draws is its dining scene, which includes multiple restaurants and bars, from Hungarian-Viennese cuisine to the well-known Nobu restaurant.

Guests also have access to an indoor pool, a full spa, and fitness facilities, making it easy to relax after a day of sightseeing. Rooms typically start around €230 per night, offering strong value for a luxury stay in Budapest’s city center.

Check rates and reserve this convenient stay here!

Located right next to St. Stephen’s Basilica in District V, Radisson Collection Hotel, Basilica Budapest offers a sleek, modern stay with one of the best central locations in Budapest. It’s a great option for travelers who want stylish interiors, rooftop views, and immediate access to major landmarks and dining spots.

Set in a restored 19th-century townhouse near the Danube, Prestige Hotel Budapest is another popular choice that blends classic elegance with modern comfort in the heart of District V. This boutique-style hotel is ideal for couples and travelers who want a quieter, more refined stay within walking distance of Parliament and the Chain Bridge.

Bohem Art Hotel – $

Bohem Art Hotel is a budget-friendly stay with personality, located right in the heart of Budapest, just steps from the Danube and Váci Street. Featuring rotating works by young Hungarian artists, the hotel feels more like a small gallery than a typical budget hotel, making it a great choice for travelers who want something a little different without spending much.

Rooms are on the smaller side, but they’re comfortable and thoughtfully set up, with air conditioning, free Wi-Fi, and everything you need after a full day of exploring. The location really does most of the work here, with restaurants, cafés, and bars all within a few minutes’ walk.

Public transport is easy to access, but chances are you’ll be walking most places. Rooms usually start around €65–€100 per night, making Bohem Art Hotel a solid choice for value and location.

Check rates and book this artsy budget stay here!

If Bohem Art Hotel is fully booked, Budapest Panorama Central is another solid budget option in a similar central location near the Danube and Váci Street. It’s a straightforward choice for travelers who prioritize location and easy transport over extra amenities.

Another good alternative for budget-minded travelers, Ramada by Wyndham Budapest City Center offers a comfortable, no-frills stay close to shops, restaurants, and public transport. It’s ideal for those who want a familiar hotel brand and a central base for exploring Budapest without stretching their budget.

District VII – Erzsébetváros

BEST FOR A LIVELY CULTURAL STAY

Pros

• Home to Budapest’s famous ruin bars and vibrant nightlife scene
• Packed with trendy cafés, street food spots, and creative venues

Cons

• Can be noisy at night, especially on weekends
• Less polished and more crowded than central districts like District V

District VII, known as Erzsébetváros, is Budapest’s most energetic and creative neighborhood. Once part of the city’s historic Jewish Quarter, this area has evolved into the heart of Budapest’s nightlife and alternative culture, while still retaining traces of its layered past. Today, it’s a lively mix of historic buildings, street art, late-night bars, and casual eateries.

This district is best suited to travelers who enjoy being in the middle of the action, especially younger travelers, groups of friends, and anyone who prioritizes nightlife and food culture. Erzsébetváros is most famous for its ruin bars, which transformed abandoned buildings into quirky social spaces filled with mismatched furniture and eclectic décor. Széchenyi and Instant are among the most popular, drawing both locals and visitors for drinks, music, and late nights.

During the day, the neighborhood shifts gears, with trendy cafés, bakeries, and street food spots lining its streets. You’ll also find cultural landmarks like the Dohány Street Synagogue nearby, adding historical depth to the area. Centrally located on the Pest side, District VII is walkable and well-connected by public transport, making it easy to explore Budapest by day and come home to its most animated neighborhood at night.

Anantara New York Palace Budapest – $$$

Anantara New York Palace Budapest is one of the city’s most iconic luxury hotels, housed in a grand 19th-century building right on the edge of District VII. Staying here feels like stepping into old-world Budapest, with dramatic architecture, soaring ceilings, and a sense of history that’s hard to match—yet you’re still close to the Jewish Quarter’s nightlife and cultural sights.

This hotel is especially great for couples and travelers who want a memorable, upscale stay with a strong sense of place. Rooms and suites are spacious and elegant, featuring rich fabrics, classic furnishings, and thoughtful modern comforts. 

The highlight of the hotel is the legendary New York Café, often called the most beautiful café in the world. Guests also have access to a spa, indoor pool, and fitness center, offering a calm retreat after busy sightseeing days. Rooms typically cost around €240 to €1,000 per night.

Browse room options and secure this iconic luxury stay here!

If you like the grand, historic feel of Anantara New York Palace, Corinthia Budapest is another standout luxury option in District VII. Known for its elegant architecture and expansive spa complex, it’s ideal for travelers who want classic five-star comfort with easy access to the Jewish Quarter’s nightlife and cultural scene.

For travelers who prefer more space and flexibility, Prime star Deak ter Modern Luxury Apartments Budapest offer a sleek, modern alternative just steps from Deák Square. These apartments are perfect for longer stays or groups who want a central location and upscale amenities with the convenience of a home-style setup.

Queen’s Court Hotel & Residence – $$

Queen’s Court Hotel & Residence is a comfortable mid-range option in District VII that balances space, location, and a quieter atmosphere just a few steps away from the neighborhood’s nightlife. Set slightly back from the busiest streets, it’s a great choice if you want to stay close to the action without hearing it all night long.

This hotel works especially well for couples, longer stays, and travelers who appreciate having extra room. The suites are spacious and thoughtfully designed, many with balconies and kitchenettes, giving them more of an apartment-style feel. After a day of sightseeing or a late night out, the on-site spa with an indoor pool and jacuzzi is a welcome place to unwind.

There’s also a peaceful courtyard garden and an on-site restaurant and bar for easy meals. Rooms typically range from around €120 to €280 per night, with suites priced around €200 to €1,200, depending on the season.

Check rates and book this spacious mid-range stay here!

If you like the central location of Queen’s Court but want a slightly more boutique feel, Hotel Memories Budapest is a charming option nearby. It offers cozy rooms, a wellness area, and a quieter atmosphere while still being within easy walking distance of District VII’s bars and cafés.

For a more budget-friendly alternative right in the heart of the action, Roombach Hotel Budapest Center is a popular pick just steps from ruin bars and nightlife. It’s a simple, modern hotel that works best for travelers who plan to spend more time exploring the city than hanging out in their room.

Danubius Hotel Hungaria City Center – $

Danubius Hotel Hungaria City Center is a straightforward, budget-friendly option with a super convenient location near Keleti railway station, making it ideal for travelers arriving by train or planning day trips beyond Budapest. It’s not flashy, but it delivers solid value, reliable comfort, and excellent transport connections right outside the door.

This hotel suits budget travelers, short stays, and anyone who plans to spend most of their time exploring the city rather than hanging around the hotel. Rooms are simple and functional, with air conditioning, free Wi-Fi, and comfortable beds, while some offer city views for a little extra light and space. An on-site restaurant serves Hungarian and international dishes, and the daily breakfast buffet is a popular add-on for busy sightseeing days.

With easy metro access and quick connections to the city center, Hotel Hungaria is a practical choice. Rooms typically range from around €50 to €250 per night.

For a quiet city-center stay, reserve Hotel Memories Budapest here!

If Hotel Hungaria City Center is booked or you’d prefer something with more space, Florin Apart Hotel is a great alternative nearby, offering apartment-style rooms with kitchenettes in a similarly central location. It’s ideal for longer stays or travelers who want a bit more independence while still keeping costs down.

For a more modern, design-forward budget stay, The Honest Budapest by Chic & Basic offers a fun, minimalist vibe with stylish rooms and a lively atmosphere. It’s a good pick for younger travelers or couples who want something affordable but more personality-driven, with easy access to public transport and city sights.

District I – Budavár

BEST FOR A HISTORIC & QUIET STAY

Pros

• Peaceful atmosphere with some of Budapest’s most historic scenery
• Stunning views over the Danube and Pest from Castle Hill

Cons

• Fewer nightlife and dining options compared to the Pest districts
• Steeper streets and hills can be tiring for some travelers

District I, known as Budavár, sits high on Castle Hill on the Buda side of the city and instantly feels calmer than the rest of Budapest. While Pest buzzes late into the night, Budavár slows things down. This is one of the city’s oldest neighborhoods, where cobblestone streets, medieval walls, and storybook buildings set the tone, especially once the daytime crowds thin out.

Budavár is an excellent choice for travelers who care more about atmosphere than nightlife. Couples, history lovers, and anyone who prefers peaceful evenings will feel right at home here. 

The district is anchored by Buda Castle, a UNESCO World Heritage Site that has watched over the city for centuries, and wandering its grounds never gets old. Just nearby, Fisherman’s Bastion delivers some of the best views in Budapest, looking straight across the Danube toward Parliament. Sunrise and evening are particularly magical.

What really makes Budavár special is the experience of wandering without a plan. Pastel-colored houses, quiet squares, and hidden courtyards appear when you least expect them. Dining options are fewer, and nights are quiet, but that’s exactly the point. With easy bus routes, walking paths, and the historic funicular connecting Castle Hill to the city below, Budavár offers a peaceful retreat that still feels unmistakably Budapest.

BALTAZÁR Boutique Hotel – $$$

BALTAZÁR Boutique Hotel is a stylish hotel tucked into the heart of the Castle District, offering a more intimate and design-forward take on luxury in Budavár. Sitting just steps from cobblestone streets and historic landmarks, it’s a great choice for travelers who want to stay somewhere character-rich without the formality of a large luxury hotel.

This hotel is especially popular with couples and design lovers who appreciate thoughtful details and a cozy, upscale atmosphere. Each room and suite is individually decorated with warm tones, elegant furnishings, and modern comforts, giving the hotel a very personal feel. Breakfast is served à la carte in the on-site restaurant and is a lovely, relaxed way to start the day before exploring Castle Hill.

With Buda Castle and Fisherman’s Bastion within easy walking distance, the location is hard to beat. Rooms typically range from around €150 to €370 per night, depending on the room type and season.

Check rates and book this boutique Castle District stay here!

If you want a larger, full-service luxury hotel in the Castle District, Hilton Budapest is a classic alternative with sweeping views over the Danube and Parliament. Set within a historic monastery complex, it’s ideal for travelers who want five-star comfort, on-site dining, and an iconic location near Fisherman’s Bastion.

For a more intimate, design-focused stay similar in spirit to BALTAZÁR, PEST-BUDA Design Hotel offers a charming boutique experience right at the foot of Castle Hill. It’s perfect for couples who want modern style, personalized service, and a quieter atmosphere within walking distance of Budavár’s main sights.

Buda Castle Hotel Budapest- $$

Buda Castle Hotel Budapest is a comfortable mid-range option right in the heart of the Castle District, just a short walk from Matthias Church and Buda Castle itself. Tucked along a quiet street, it’s ideal for travelers who want to stay inside Budavár without paying luxury-hotel prices.

This hotel works especially well for couples and travelers who prioritize location and a peaceful atmosphere. Rooms are simple but well-equipped, with air conditioning, free Wi-Fi, coffee and tea facilities, and comfortable beds—everything you need after a day of wandering Castle Hill. Some rooms overlook a small garden, which adds to the calm, residential feel of the area.

There’s also a cozy bar on-site, and breakfast is available to fuel up before sightseeing. With Fisherman’s Bastion, the Chain Bridge, and scenic viewpoints all within walking distance, the location is a major plus. Rooms typically range from around €90 to €260 per night, offering solid value for such a historic setting.

Secure your room at this well-located Castle District stay here!

If you prefer a more modern, boutique-style hotel to the Buda Castle Hotel, Leon Hotel & Lounge is a good alternative for staying on the Buda side near Castle Hill. It’s slightly farther from the Castle District itself, but tram access and a sleek on-site restaurant make it appealing for couples who value contemporary design over historic charm.

For another great option, Park Plaza Budapest suits travelers who like the Castle District location of Buda Castle Hotel but want larger rooms and dramatic Danube views. It trades the quiet, tucked-away feel of Budavár for a more polished, upscale atmosphere right along the river.

Milford Suites Budapest – $

Milford Suites Budapest is a great budget-friendly option in the Castle District, sitting just minutes from Matthias Church and Fisherman’s Bastion while still offering more space than a typical hotel room. Set in a quiet part of Budavár, it’s ideal for travelers who want a central location without paying Castle Hill premiums.

The apartment-style suites are practical and comfortable, with small kitchens, seating areas, and modern bathrooms—perfect for longer stays or travelers who like having a bit of independence. Contemporary Hungarian artwork adds personality without feeling overdone. Breakfast is available on a covered terrace, and cafés, restaurants, and a supermarket are all nearby.

With Batthyány Tér metro station within walking distance and Parliament just across the river, Milford Suites offers excellent value. One-bedroom apartments often start around €75–€200 per night, making it one of the most affordable stays in Budavár.

Book your stay at this affordable apartment hotel here!

If you like the Castle District location of Milford Suites but prefer a more traditional hotel experience, Carlton Hotel Buda Castle is a strong alternative nearby. It offers a classic hotel feel with daily housekeeping, a 24-hour front desk, and comfortable rooms, trading apartment-style space for added convenience and service.

For another budget-friendly option, Váralja Home suits travelers who like the value and independence of Milford Suites but want an even more local, residential atmosphere. Located just below Castle Hill, it’s ideal for budget-conscious travelers who don’t mind a short uphill walk in exchange for lower prices and a quieter setting.

Related Read: Check out our Three-Day Budapest Itinerary for a streamlined plan of exploring this historic city!

District VI – Terézváros

BEST FOR CONVENIENCE & SIGHTS

Pros

• Central location close to major attractions and public transport
• Easy access to cultural sights, dining, and shopping

Cons

• Busier streets, especially along main roads
• Less residential and atmospheric than quieter districts

District VI, known as Terézváros, sits right in the middle of the action and is one of the most convenient areas to stay in Budapest. Stretching along the elegant Andrássy Avenue, this district blends grand architecture with everyday city life, making it a practical base for sightseeing without feeling overwhelming.

Terézváros is ideal for travelers who want to be close to Budapest’s highlights and move around the city with ease. First-time visitors, short-stay travelers, and those planning packed sightseeing days will appreciate how walkable and well-connected the area is. 

Andrássy Avenue, a UNESCO World Heritage Site, runs straight through the district and is lined with historic buildings, boutiques, cafés, and museums. One of its standout landmarks is the Hungarian State Opera House, an architectural gem that’s worth visiting even if you don’t attend a performance.

Another big advantage of Terézváros is its location next to the Jewish Quarter. This puts Budapest’s best nightlife, ruin bars, and casual dining just a short walk away, while still allowing you to retreat to a slightly calmer area at night. With multiple metro lines, trams, and buses nearby, Terézváros offers an easy, central stay for travelers who want convenience without fully committing to the nightlife scene.

W Budapest – $$$

W Budapest is one of the most stylish places to stay in District VI, set directly along Andrássy Avenue just steps from the Hungarian State Opera House. Housed in a beautifully restored historic building, it combines grand architecture with the bold, modern design the W brand is known for, making it a standout luxury option in Terézváros.

Rooms and suites are spacious and sleek, with plush beds, modern bathrooms, and city or landmark views. Guests also have access to a full-service spa, indoor pool, fitness center, and on-site restaurant and bar, making it easy to relax without leaving the hotel. 

With metro stations, shopping, and major sights right outside the door, the location is hard to beat. Rooms and suites typically range from around €230 to €1,000+ per night, depending on room type and season.

Check availability at this luxury Andrássy Avenue hotel here!

If you like the central location of W Budapest but want a more classic boutique hotel at a lower price point, Hotel Moments Budapest is a strong alternative nearby. It offers elegant rooms in a historic building with a refined, understated atmosphere, trading W’s bold design and spa facilities for quieter charm and excellent walkability.

For another upscale option, Maison 45 suits travelers who love the polished side of Terézváros but prefer an intimate, adults-only boutique experience over a large luxury hotel. With personalized service and thoughtfully designed rooms, it delivers a calm, residential feel that’s ideal for couples seeking luxury without the buzz of a big-name brand.

Pullman Budapest – $$

Pullman Budapest is a polished mid-range option in Terézváros, just a short walk from the Hungarian State Opera and right in the heart of District VI. It’s a great choice for travelers who want a central, well-connected location with modern comforts, without stepping into full luxury pricing.

Rooms are soundproofed and thoughtfully designed, featuring comfortable beds, coffee machines, and sleek bathrooms—ideal after long sightseeing days. The hotel also has a fitness center, on-site restaurant and bar, and a generous breakfast buffet, making it easy to start and end your day without leaving the property. 

With St. Stephen’s Basilica, the Jewish Quarter, and public transport all nearby, the location is especially convenient for first-time visitors. Rooms typically range from around €100 to €500 per night.

Stay in the heart of District VI and reserve Pullman Budapest here!

If you prefer a more familiar hotel brand and slightly simpler design, Hilton Garden Inn Budapest City Centre is a solid alternative nearby. It offers comfortable rooms and reliable amenities, making it a good pick for travelers who value consistency and location over style-forward touches.

For a more distinctive stay, Mystery Hotel Budapest, Preferred Hotels & Resorts suits travelers who want a more character-driven experience while still staying close to District VI. Its dramatic, baroque-inspired interiors and on-site spa trade Pullman’s clean, modern feel for a more theatrical, boutique-style atmosphere that feels like part hotel, part design experience.

Adagio Downtown Rooms – $

Adagio Downtown Rooms is a solid budget-friendly option in Terézváros, just a short walk from the House of Terror and within easy reach of Andrássy Avenue. It’s a great pick for travelers who want a central location near major sights without stretching their budget.

Rooms are simple but comfortable, with air conditioning, private bathrooms, coffee machines, and free Wi-Fi—everything you need for a no-frills city stay. Some rooms also feature balconies with city views, which is a nice bonus at this price point. 

While amenities are limited, the location more than makes up for it, with metro access, restaurants, and attractions all within easy reach. Rooms typically range from around €40 to €80 per night, making it one of the most affordable stays in District VI.

Book this budget stay at Adagio Downtown Rooms here!

If Adagio Downtown Rooms is all booked up, Budapest Holidays Downtown is another solid budget-friendly option with apartment-style accommodations. It’s especially well-suited for longer stays or travelers who want extra space and the flexibility of a self-catered setup without breaking the bank.

For another affordable option in this area, NEXTO DORMERO Hotel Budapest offers a more modern hotel experience while still keeping prices reasonable. With contemporary rooms and reliable amenities, it’s a good middle ground for travelers who want more comfort and design than a basic stay.

District VIII – Józsefváros

BEST FOR A BUDGET-FRIENDLY STAY

Pros

• Generally, more affordable accommodation and dining options
• More local, lived-in feel compared to central tourist districts

Cons

• Still has a slightly gritty reputation in some areas
• Fewer major sights within immediate walking distance

District VIII, known as Józsefváros, is one of Budapest’s most up-and-coming neighborhoods and a solid option for travelers looking to stretch their budget. Located just east of the city center, this district has undergone significant redevelopment in recent years, blending restored historic buildings with student hangouts, cafés, and everyday local life.

Józsefváros is best suited to budget-conscious travelers, longer stays, and those who prefer a more local experience over a polished tourist feel. Parts of the district, especially around the Palace Quarter, showcase a very different side of Budapest, with grand 19th-century architecture and quieter streets. The Palace Quarter is also home to the Hungarian National Museum, one of the city’s most important cultural institutions and a great place to dive into Hungary’s history.

While some areas still feel rough around the edges, that’s part of Józsefváros’ character. It’s a district in transition, where long-time residents, students, and creative spaces coexist. Public transport connections are strong, making it easy to reach the city center, District V, and the Jewish Quarter in just a few minutes. For travelers who value affordability and authenticity, Józsefváros offers a more local base without being far from Budapest’s main attractions.

Kozmo Hotel Suites & Spa – $$$

Kozmo Hotel Suites & Spa is a standout luxury option in District VIII, offering an upscale retreat in one of Budapest’s most up-and-coming neighborhoods. Set slightly outside the tourist-heavy core, it’s a great choice for travelers who want high-end comfort while still enjoying the more local, lived-in feel of Józsefváros.

Rooms and suites are spacious, elegant, and soundproofed, with modern bathrooms, plush beds, and thoughtful details that make longer stays especially comfortable. The on-site spa is a major highlight, featuring an indoor pool, sauna, steam room, and wellness treatments—perfect after busy sightseeing days. 

A stylish restaurant and bar round out the experience, making it easy to relax on-site. Rooms and suites typically range from around €220 to €1,000+ per night, depending on your selections.

Check availability at this refined Józsefváros luxury hotel here!

If Kozmo Hotel feels like more luxury than you need, BoHo Hotel Budapest offers a stylish boutique alternative at a lower price point. It delivers modern rooms and a cozy, design-forward atmosphere that suits travelers who want something polished without the cost of a full luxury stay.

For another solid option in District VIII, Courtyard by Marriott Budapest City Center provides a reliable, modern hotel experience with spacious rooms and consistent amenities. It’s a good pick for travelers who value comfort and convenience over boutique character while staying budget-conscious.

The Amberlyn Suite Hotel – $$

The Amberlyn Suite Hotel is a comfortable mid-range option in District VIII, offering apartment-style accommodations that work especially well for longer stays and travelers who like having extra space. Located near Blaha Lujza Square, it provides easy access to public transport while still keeping prices lower than hotels closer to the river.

Suites are spacious and practical, with fully equipped kitchens, dining areas, and modern bathrooms—ideal for families, couples, or anyone who prefers a more independent stay. Daily housekeeping, a 24-hour front desk, and optional breakfast add hotel-style convenience without sacrificing flexibility. 

With the Hungarian National Museum and Jewish Quarter within walking distance, the location strikes a nice balance between local and central. Rooms typically range from around €90 to €650 per night, depending on room size and season.

Book your Józsefváros stay at The Amberlyn Suite Hotel here!

If you like the apartment-style setup of Amberlyn Suite Hotel but want a more upscale experience, Zoya Luxury Residence is a refined alternative nearby. It features stylish, high-end apartments with modern finishes and a quieter atmosphere, making it a great choice for travelers who want added comfort without committing to a full-service hotel.

For a more creative and boutique stay, Brody House suits travelers who want a character-filled alternative to Amberlyn’s practical setup. Known for its art-filled interiors and relaxed, bohemian vibe, it offers a distinctly local experience that appeals to couples and travelers looking for something a little different.

Three Corners Hotel Anna – $

Three Corners Hotel Anna is a reliable budget-friendly choice in District VIII, offering a comfortable stay within walking distance of the Hungarian National Museum and Dohany Street Synagogue. It’s well-suited to travelers who want a simple, well-located hotel without paying for extras they won’t use.

Rooms are compact but clean and comfortable, with air conditioning, private bathrooms, and very comfortable beds—something guests consistently praise. A daily breakfast buffet is available, and there’s also a small bar and garden area for unwinding in the evenings. While amenities are straightforward, the hotel’s calm atmosphere and solid service make it a good value pick. 

With public transport close by and central sights easily reachable, it works well for short stays and sightseeing-focused trips. Rooms typically range from around €55 to €140 per night, depending on room type and season.

Lock in the best rates for Three Corners Hotel Anna here!

If the Three Corners Hotel Anna is fully booked, Central Hotel 21 is another solid budget-friendly option with a similar no-frills approach. It offers clean, comfortable rooms in a quiet setting, making it a good choice for travelers who want a simple place to sleep while spending most of their time exploring the city.

For a slightly more modern alternative, IntercityHotel Budapest suits travelers who want upgraded comfort without moving into full mid-range pricing. With contemporary rooms and excellent transport connections, it’s especially convenient for short stays, business trips, or travelers arriving by train.

Top Activities to do in Budapest

Now that you’ve narrowed down your preferred area and favorite hotel in Budapest, you can start planning your itinerary! Whether you want to explore historic streets, hit the lively ruin bars, or relax on a river cruise, there is plenty to do in this city. Here are a few of our top choices!

• Enjoy a Danube River Dinner Cruise – This dinner cruise is the ultimate cultural experience! Not only can you see the city lit up from the mighty Danube River, but they also perform traditional folk music and dances, and you can treat yourself to a gourmet Hungarian dinner for a memorable night out.

• Go wine tasting – Did you know Hungary makes some amazing wine? It’s true! This full-day tour to the Etyek wine region gave us a taste of the best white and sparkling wines. It included transportation, so we didn’t have to worry about driving and could truly enjoy the tastings!

• Try Hungarian cuisine – We think this food tour is the best way to immerse yourself in local culture! Led by a Budapest native, we tasted our way through the city, eating yummy food and learning a lot as we went, too.

• Explore the city on a tuk-tuk – Save your feet and continue sightseeing with this tuk-tuk tour of Budapest! You can cover more ground and have fun zipping through the city, all while discovering the history and significance of Budapest’s top sights.

• Discover Budapest’s dark history – This nighttime ghost tour is such a fun way to learn about Budapest’s dark past! Led by an entertaining (yet informative) actor-guide, this experience is equally fun and insightful, and a bit spooky!

Related Read: Looking for more fun activities? See our guide on the best things to do in Budapest here for our top recommendations!

Renting a Car in Europe

Exploring Europe by car is a fantastic way to uncover hidden gems—think charming villages, scenic countryside, and off-the-beaten-path spots that trains and buses might miss. Driving here is generally straightforward, but it’s good to be prepared for some regional quirks.

We always use Discover Cars to book our rentals and can’t recommend them enough. It’s super easy to compare prices, check company ratings, find automatic cars (which can be tricky in Europe!), and add affordable full coverage insurance. If you want a full breakdown, check out our Discover Cars review here.

Tips for Renting a Car in Europe

• Know the local rules: Most countries drive on the right, except the UK, Ireland, Cyprus, and Malta. Road signs and driving laws can vary, so do a quick check before you go.
• Practice defensive driving: In parts of Europe, especially in the south, driving can feel fast-paced and a little unpredictable. Make sure you stay alert and keep a safe following distance.
• Insurance is essential: I highly recommend adding full coverage insurance to your rental. Whether it’s a parking lot ding or a chipped windshield on a mountain road, full protection gives you peace of mind. Plus, it’s super affordable through Discover Cars!
• Pick the right vehicle: Most rentals in Europe are manual, and automatic cars are limited, so book early if that’s what you need. A compact car is also ideal for narrow roads and tight parking. On Discover Cars, you can easily filter for everything you need.
• Watch for restricted zones: Many cities have low-emission or restricted traffic zones. Driving into these without a permit can result in fines, so always check local rules if you’re heading into a city center.
• Be prepared for border crossings: While crossing borders is usually easy within the Schengen Zone, some rental companies require you to declare your travel plans in advance. Always check with Discover Cars if you’re planning to drive into another country.

What You Need to Rent a Car in Europe

• A valid driver’s license from your home country.
• If you’re from outside the EU, an International Driving Permit (IDP) is recommended—and in some countries, it’s legally required.
• A credit card in the driver’s name is typically needed for the security deposit.
• Most rental companies require drivers to be at least 21 years old. If you’re under 25, expect a young driver surcharge—and in some countries, the minimum age may be higher.

Ready to hit the road? Book your car with Discover Cars here and discover the freedom of exploring Europe on your own terms!

Thanks for reading!

Choosing the right place to stay can truly make or break your trip, especially in a city as diverse as Budapest! Whether you’re looking for a well-connected and lively area or something quiet and historic, you can find it here. Be sure to book your hotel well in advance, as these top options tend to book out quickly!

Need help planning the rest of your trip? See all of our Europe blogs here! I’ll leave a few related reads below to inspire your next destination, including itineraries, top things to do, and more where to stay guides. Cheers!

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