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Until 1849, there was no fixed link bridging the mighty Danube between Buda and Pest. When a chain bridge was built, becoming the first permanent river crossing on this stretch of the river, Buda on the east bank and Pest on the west developed even stronger ties. So strong, that in 1873, the two cities joined forces and Budapest was born.
When the Hapsburg Empire collapsed with defeat in the First World War, Budapest took center stage as capital of the newly independent Hungary. When the Second World War came, Budapest found itself occupied by Germany and besieged and attacked by Allied Forces. After almost fifty years behind the Iron Curtain, Budapest emerged, its fighting spirit as strong as ever.
Today, the Hungarian capital is both lively and subdued. Young at heart with a vibrant coffee culture and flourishing arts scene, you’ll never be far away from relics of the past. Grand Hapsburg palaces, an imposing castle and bathhouses fuelled by thermal hot springs have survived all of Budapest’s troubles.
All those things combined have made Budapest one of Europe’s top city break destinations. Add in lively nightlife and favorable exchange rates against the Hungarian Forint, Budapest is the ultimate destination for history lovers and partygoers alike. To help you plan your Hungarian escape, this is our guide to the best area to stay in Budapest.
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Buda or Pest: Which is the Best Area to Stay in Budapest?
Which bank of the Danube is the best area to stay in Budapest very much depends on your interests. If you’re heading to Budapest to soak up the history, Buda will suit you the most. It’s brimming with medieval cobbled streets and home to Budapest’s iconic castle.
If you’re travelling to Budapest to indulge in the city’s famous nightlife scene, Pest will be right up your street. It’s vibrant and lively, helped along by a strong student population.
That’s not to say Buda isn’t without a happening bar scene, nor Pest without history. Whichever side of the Danube you end up on, you’ll be able to enjoy all the highlights the other has to offer. Thanks to a reliable public transport system and plenty of bridges to stroll across, it’s easy to get between Buda and Pest.
Buda or Pest for First Time Visitors
If you’re researching the best area to stay in Budapest for your first visit, I always recommend booking a hotel in Buda. The reason is simple: you’ll be better positioned for sightseeing. As we’ve already mentioned, it’s easy to skit between Buda and Pest, so if you fancy letting your hair down in the evening, you’ll be able to hop across the river in no time at all.
For this reason, as we look through the best area to stay in Budapest, we’ll be focussing mainly on Buda. But if you do decide you want to stay in Pest, stick around until the end for our top picks on the east bank.
The Best Area To Stay in Budapest
District I
Bridging the gap between Fisherman’s Bastion and the citadel, hemmed in by Taban Park and the Danube, District I truly deserves your consideration when you’re thinking about the best area to stay in Budapest. This is especially true if this is your first time in the Hungarian capital.
If exploring museums and ticking off the big name sights is your idea of the ideal city break, District I is almost certainly the best area to stay in Budapest. District I’s museum highlights include Budapest History Museum and Semmelweis Museum. And whilst you might expect Buda Castle to be in Castle Hill, it’s actually right here in District I too.
Travel Tip: If you’re planning to visit multiple museums, a Budapest Card may save you money. Budapest Cards include entrance to over 30 attractions as well as local public transport. They’re available for durations of between one and five days. Purchase yours online before you go.
Where to Stay in District I
Despite being a firm favorite for the best area to stay in Budapest, there are surprisingly few hotels in District I. As is often the case though, what District I lacks in quantity, it more than makes up for in quality.
The best of the best has to be Hotel Clark. The décor is chic and premium, the rooms are spacious and homely, but best of all, the view from the rooftop bar is unrivalled. Better still, Hotel Clark is adults-only, making it the ideal retreat for a romantic escape.
Of course, that’s not ideal if you’re looking for the best area to stay in Budapest for a family vacation. If you are, Leon Hotel is even closer to the river and welcomes all ages. For one of the best value stays on the Buda side of the Danube, you’ll want to check out the Carlton Buda Castle.
Taban
The second on our rundown of the best area to stay in Budapest is directly south of District I. Taban is home to its namesake Taban Park which hides ruins of Medieval Budapest. By far its most famous attraction though, is Citadella.
Located atop Gellert Hill, Budapest’s citadel was listed as a UNESCO World Heritage Site in 1987. Built between 1851 and 1854, this imposing fortress was intended by the Hapsburgs to prevent Hungarian uprisings against their rule. It served this purpose well for both Austro-Hungary and their successors, the Soviet Union.
Travel Tip: Citadella underwent extensive renovations between 2014 and 2025 and was closed to the public during this time. Works were meant to be complete by 31st December 2025, but have overrun. The new estimated reopening date is Spring 2026.
Beneath the citadel, deep within Gellert Hill, hides another of Budapest’s claims to fame. Miles of thermal hot springs run through its dolomite rock. Pay a visit to Gellert Hill Cave before unwinding for the day at Rudas Thermal Baths.
Where to Stay in Taban
Just like District I, Taban has a surprising shortage of hotels. Hotel Orion is our top pick in Taban. Situated at the foot of Gellert Hill, it’s within walking distance of all Buda’s main sights. Slightly further away, but still walkable, Gold Hotel and their attached aparthotel, Gold Apartments, are ideal for budget conscious travelers.
Castle Hill
The last neighborhood on the west bank of the Danube to make our rundown of the best area to stay in Budapest might just be the most famous. If you’ve started planning your Budapest city break, the chances are you’ve already seen photos of Castle Hill.
The highlight here is always a ride on Castle Hill Funicular. Running from the river bank, the views from the top are other worldly and well worthy of a photo or two.
Back on terra firma, be sure to walk around the base of the hill keeping your eyes peeled for the cave dwellings built into the rockface. The most impressive of all is the Labyrinth. Dug out in medieval times, this network of tunnels has been used as a prison and even a graveyard. A guided tour is the only way to explore the Labyrinth.
Where to Stay in Castle Hill
As hotel choice goes on this side of the river, Castle Hill is definitely the best area to stay in Budapest. One of the best is Pest-Buda Design Hotel which stands at the foot of the hill. Their on-site Bistro offers some of the finest authentic Hungarian cuisine around.
If you prefer smaller, more personal hotels, Maison Bistro & Hotel has a laid-back B&B vibe. For the ultimate relaxation, upgrade to their Grand Suite for the luxury of a private hot tub. Hotel Castle Garden is our top pick in Castle Hill for the ideal blend of value and comfort.
Pest
Buda’s younger, livelier sister, Pest is the best area to stay in Budapest if you’re coming to discover Hungary’s party spirit. Like many Eastern European capitals, the advent of low-cost airlines in the early 2000s made Budapest a popular destination for stag and hen parties.
If this is what’s drawing you to Budapest, there’s plenty of great activities to pass the time. Take a party cruise down the Danube, ride the Beer Bus and go all out with a “sparty.” If, like me, you had no idea what one of those is, it’s a spa party.
Of course, there’s an awful lot more to Pest than nightlife. The east bank of the Danube is home to two of the city’s grandest buildings: St Stephen’s Basilica and the Hungarian Parliament.
Pest even features its very own, little known castle. Located within City Park, fairy-tale Vadjahunyad Castle is a Budapest highlight. Pest’s top contributions to Budapest’s museum scene, Petofi Museum of Literature and the Hungarian National Museum are some of the best in the city.
Where to Stay in Pest
When it comes to the best area to stay in Budapest for hotel choice, there’s no contest. Pest has more hotels than all the other best areas to stay in Budapest combined. Whether you’re seeking five-star boutique luxury or a cheap dorm bed, Pest won’t disappoint.
Our top pick here is Mamaison Chain Bridge. At the side of Gresham Palace, steps from the river and its namesake Chain Bridge, Mamaison is a suite-only hotel with a heated indoor pool. If you’re looking for great value, check out Florin Apart Hotel or, for a bit of peace and quiet, take a look at Mirage Medic Hotel on the edge of City Park.
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