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Hungary’s capital city, Budapest is considered the star of the River Danube. It is home to exquisite architecture, lush pockets of green spaces, popular spas, and fascinating traces of ancient Roman civilization. For these reasons, Budapest is an incredibly popular tourist destination — particularly with travelers looking for history and culture.
When deciding which part of Budapest to stay in, it’s helpful to understand how the city is structured. Budapest was formed in 1873 when three separate cities — Buda, Pest, and Óbuda (Old Buda) — were united. The River Danube splits the city in half, with Buda on the western bank and Pest on the right. Óbuda is a beautiful hilly region that sits on the west bank north of Buda.
The city is divided into 23 districts numbered clockwise in a widening spiral. In this guide, we describe the unique atmosphere of Budapest’s most central districts, highlight the top sights in each, and list some of the city’s best hotels to help you decide where to stay.
District I – Castle District for History Lovers
Highlights: Fisherman’s Bastion, Matthias Church, Royal Palace, Gellert Hill, Buda Castle, Hungarian National Gallery
Buda, also known as the Castle District, is situated on the west side of the Danube River. It’s a charming area lined with cobblestones and dotted with beautiful medieval monuments such as Matthias Church and Fisherman’s Bastion. Castle Hill in District I offers fantastic views over the river towards Pest and of the impressive Hungarian Parliament Building.
If you love Gothic architecture and want to be surrounded by history, the Buda side of town is the perfect place to stay. The area forms part of Budapest’s extensive UNESCO World Heritage site, and there are many historical relics and fascinating museums to explore here.
The area also offers easy access to District V on the east side of the Danube via Chain Bridge. Be aware that the central location of District I means accommodation can be expensive, and the streets can get crowded with tourists during the day. At night, the area gets very quiet, which could be a positive or a negative, depending on the type of vacation you’re looking for.
Popular Hotels in District I
District II – Rózsadomb for Couples
Highlights: Lukács Baths, Király Baths, Veli Bej Baths, Tomb of Gül Baba, Millenáris Park, National Dance Theatre
District II is north of District I and runs right up to the border of Buda Hills in District III. It’s a quiet neighborhood that feels somewhat disconnected from the main portion of the city, except for its southern area, which incorporates part of the Danube’s left bank. When you stay in this riverside area, you can enjoy relatively easy access to the inner city, Pest, on the other side of the river, as well as the beauty of the nearby hills, which make for excellent hiking.
District II overall is a relatively calm and serene area, which makes it perfect for couples looking to escape into nature. It’s also a great way to get an idea of what local life is like for wealthy Budapestians who live in this area.
There are lots of thermal baths to discover in District II, and while they’re less ornate than the famed Széchenyi Baths, they’re also significantly less popular with tourists, which is ideal for undisturbed relaxation.
District III – Óbuda & Buda Hills for Families
Highlights: Aquincum Archaeological Museum, The Children’s Railway, Sziget Beach
District III encompasses Óbuda and Buda Hills on the west side of the Danube. Óbuda has a cozy, village-like atmosphere and impressive old architecture. The biggest attraction is the Aquincum Roman ruins which are popular with families. The Buda Hills are perfect for hiking and mountain biking, and in winter, they’re often used for sledding. You can also enjoy awesome panoramic views of the Danube and Pest from these picturesque hills.
The large and leafy Óbuda Island makes up part of District III. It’s a leafy recreational area that’s popular with cyclists. Sziget Festival occurs here in August each year, drawing enormous crowds to watch live music and party long into the night. You can expect lots of noise in District III during this festival, but for the rest of the year, the area has a quiet pace of life, making it a good base for families.
Popular Hotels in District III
District V – Belváros & Lipótváros for First Timers
Highlights: St. Stephen’s Basilica, Vaci Street, Hungarian Parliament Building, Shoes on the Danube Bank Memorial
District V is on the Pest side of the Danube and it’s the heart of the city. It buzzes with life thanks to its high concentration of restaurants, cafes, shops, and tourist attractions. There’s a fascinating mix of architectural styles here — from Renaissance to Art Nouveau — and the broad boulevards and grand squares give this part of the city an elegance reminiscent of Paris.
Many of Budapest’s main attractions are in District V, including St. Stephen’s Basilica and the popular Vaci Street and Fashion Street for shopping. There’s no shortage of high-quality restaurants, cafes, and bars, and there’s a good mix of historic, modern, and boutique hotels too. Given that this is the very city center, accommodation is on the expensive side, but it’s worth the investment if you’re visiting Budapest for the first time and want to do lots of sightseeing.
Luxury Hotels in District V
- Aria Hotel Budapest
- Four Seasons Hotel Gresham Palace
- Gerlóczy Boutique Rooms
- Kempinski Hotel Corvinus
Midrange Hotels in District V
District VI – Terézvaros for Budget Travelers & Theatre Lovers
Highlights: Hungarian State Opera House, Thalia Drama Theater, Budapest Operetta Theatre, Szechenyi Thermal Baths, House of Terror Museum, City Park, Ruin Bars
District VI is home to Andrássy Avenue, a stately boulevard adorned with incredible architecture that’s considered the Champs-Élysées of Budapest. The Hungarian State Opera House resides here alongside many other beautiful buildings and lots of the city’s most popular high-end cafes and stores. You can find some elegant hotels in this area, which is considered the arts hub of Budapest, thanks to its high proportion of theater and music venues.
When you wander just a few blocks from Andrássy Avenue, District VI becomes a little grittier. There are many neglected buildings here as this part of downtown Budapest is slowly being regenerated, so take care if you are wandering at night.
If you’re looking to stay in the heart of Budapest on a budget, check out some of the great hostels in District VI, which are perfect for budget travelers. You’ll experience some great nightlife here too, particularly in the famous Ruin Bars which are gritty pubs set up in dilapidated buildings that have been decorated with graffiti.
Four-Star Hotels in District VI
District VII – Erzsébetváros for Nightlife
Highlights: Dohány Street Synagogue, Róth Museum
District VII is Budapest’s historic Jewish Quarter, and although it still remains home to a small community of long-time Jewish residents, it’s also now considered the city’s nightlife district. District VII’s most famous tourist attraction is the impressive 19th-century Great Synagogue on Dohány Street. This is Europe’s biggest synagogue and the second-largest in the world and is a beautiful example of Moorish Revival architecture.
You’ll find a variety of hipster coffee shops, breweries, street food trucks, and nightclubs in District VII. There are also plenty of Ruin Bars here. If you’re looking to party in Budapest, District VII is definitely the best area to stay in.
Popular Hotels in District VII
Budget Hostels in District VII
District VIII – Józsefváros for Art-Lovers & Budget Travelers
Highlights: Szabo Ervin, Hungarian National Museum, Holocaust Memorial Center, Natural History Museum
District VIII is known as the Palace District, and it’s Budapest’s student area. There are six universities in this vicinity and a high population of students and artists living, studying, and working here. There are several beautiful libraries in District VIII, including Szabo Ervin, which has beautifully ornate reading rooms that are open to the public.
The high proportion of majestic palaces and mansions makes this an elegant area with more affordable accommodation than District V. You’ll find many art galleries, coffee shops, and bars in District VIII, but the atmosphere is rather tame. Luckily, the lively Jewish Quarter is within walking distance if you’re looking for nightlife.
District IX – Ferencváros for Shopping and Theater
Highlights: The Great Market Hall, Bálna, The National Theatre, Trafó Arts Center, Ludwig Contemporary Arts Museum
District IX is positioned just beneath District V, but it extends far south. Its southern portion is very quiet, but staying in the northern area is a great way to remain close to the action of the city center. Right on the border of Districts V and IX is the huge neogothic Great Market Hall, which should be on any tourist’s hit list. There are also several theaters and museums in this area, including the National Theatre, which sits on the bank of the Danube.
Much like District VI, District IX has experienced gradual regeneration and redevelopment over the last couple of decades, and there’s an attractive mix of old and new here. You can find affordable accommodation in this area, and many of the hotels benefit from incredible views from the Danube River Promenade.
Popular Hotels in District IX
District XI – Újbuda for Relaxing Spa Breaks
Highlights: Citadella, Gellért Hill, Gellért Thermal Bath
The huge District XI begins beneath District I and extends far southwest. Its outer portion is quiet and fairly disconnected from the main city, but the area beside the Danube is considered one of the trendiest parts of Budapest. The most popular portion is Gellért Hill, which offers incredible panoramic views of the city, as well as a thermal bath.
District XI is a great place to stay for a spa weekend. The area is very picturesque; particularly along the riverside. You’ll have trouble getting around without public transport if you stay too far from the Danube, particularly if you’re interested in seeing the main attractions of Pest. Hotels are scarce here, but there are holiday apartments available if you’re happy to do a self-catered trip.
District XIII – Angyalföld, Margaret Island & Újlipótváros for Peace & Quiet
Highlights: Magaret Island, Margaret Island Water Tower, Dominican Convent Ruins, Margaret Island Music Fountain
District XIII (the 13th District) expands across Pest’s northern region and is peaceful with plenty of green space. This large district is busier at its southern end, where the streets are home to cafes, bookstores, and boutiques. The northern end of the district is predominantly residential and not ideal for tourists, but the other parts of the neighborhood are good options for visitors to Budapest.
District XIII encompasses Margaret Island, which sits in the middle of the Danube River. This scenic island boasts Medieval ruins, pretty parks, a small zoo, and an open-air swimming pool. It offers an idyllic escape from the buzz of the city if you’re looking for peace and quiet.
Popular Hotels in District XIII
District XIV – City Park for Nature & Culture
Highlights: Budapest Zoo & Botanic Garden, Museum of Fine Arts, Heroes’ Square, Vajdahunyad Castle, Museum of Ethnography, Széchenyi Thermal Baths
District XIV is considered the City Park area since it encompasses the city’s biggest green space. City Park itself is home to several popular attractions, including the Budapest Zoo, Hereos’ Square, and Vajdahunyad Castle.
It has a beautiful lake at its center, and it’s the perfect place to take a walk in nature. It’s easy to spend a full day here taking in the various monuments and museums, so be sure to visit City Park no matter which part of Budapest you stay in.
Széchenyi Thermal Baths are the largest of their kind in Europe, and they draw many people to District XIV. Accommodation options are limited here, so you might have better luck finding a hotel in nearby District VI and District VII.
Book Your Stay in Beautiful Budapest
Now that you’re familiar with the main districts of Central Budapest, you can get started planning your stay in this fascinating historic city.
