Where to Stay in Budapest (Updated 2023)

Posted: 10/29/2023 | October 29th, 2023

Budapest is one of the most fun — and most underrated — cities in Europe. While it’s become more popular in recent years, it still sees only a fraction of tourists compared to London or Paris (about 80% fewer, to be exact).

Popular with backpackers who come to enjoy the lively nightlife, it is also bursting with incredible historic sights, lots of cheap eats, and a plethora of relaxing thermal baths. There’s a ton to see and do, and it’s super affordable compared to Western Europe.

Since it actually comprises three cities (Buda, Pest, and Obuda), picking the right area to stay in is important. While Budapest isn’t massive, you’ll waste a lot of time in transit if you don’t pick the right area for your plans.

To help you save time and money, here’s my list of the best neighborhoods, so you know exactly where to stay in Budapest. These are the areas I stay in myself, because they are close to all the action, so you never have to travel far to get around.

Where to Stay for Sightseeing: Castle District (District I)

Located on the Buda side of town, this popular district is home to Buda Castle, Fisherman’s Bastion, and the towering Gellért Hill, which offers stunning views over the city. The famous Rudas and Gellért Baths (popular thermal spas) are also here. It’s a gorgeous area to stay in and leans upscale, with plenty of luxe accommodations and many fancy eateries. The photogenic Széchenyi Chain Bridge, which connects to District V, is nearby too.

Best places to stay in the Castle District:

• BUDGET: Hotel Orion Várkert – This is a small three-star hotel with simple but comfortable rooms featuring desks, electric kettles, and a small fridge. A simple but varied breakfast buffet is included, but what I loved most was the location. It’s right near the castle and the Danube, and just a short walk to all the major sights.
• MIDRANGE: Monastery Boutique Hotel – Located in a 300-year-old abbey, this modern four-star hotel boasts original exposed brick in many of its rooms. The beds are all large and comfy and the showers have good water pressure. There are desks and electric kettles in each room too. Breakfast is delicious, featuring fresh pastries, fruit, and yoghurt. The hotel is right near Fisherman’s Bastion and Castle Hill.
• LUXURY: Hotel Clark – This five-star property is for adults only. The rooms are huge and have multiple sections, featuring desks, flat-screen TVs, and…