Where to Stay in Budapest for the First Time: A Complete Guide

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Find your Perfect Hostel in Budapest

Budapest is a city that keeps giving every time you visit—I’m living proof.

After arriving by train, bus, and even one shaky old car, I learned one thing: your first trip depends on where you sleep.

Pick the right district, and you’ll enjoy hot lángos, warm baths, and new friends. Pick wrong, and you’ll cross bridges at 2 a.m. with less money and less patience.

This guide shows what really works: which areas are easy to walk, which streets have cheap food that isn’t a tourist trap, and how to mix late-night ruin bars with daytime naps.

I’ll add the small tips only repeat visitors know—like why tram doors sometimes stay shut or how locals judge you by your bath manners.

We’ll keep it friendly and simple, so your first visit feels like “I’ve got this” instead of “Where am I?” Ready? Let’s go.

Top Picks: The Best Hostels in Budapest

Best for Hostel Newbies

Mustache Hostel9.7

from 4,669 Ft | More Details

Best for Female Solo Traveler

Maverick Central Market9.2

from 2,616 Ft | More Details

Best Party Hostel

Jo&joe9.6

from 2,925 Ft | More Details

This is not an ad. We help you find the perfect hostel and compare prices from Hostelworld and Booking. You can save up to 23.7%

Top Neighborhoods to Stay in Budapest

Jewish Quarter (Erzsébetváros)

By day, you see street art, vintage shops, and cafés with tasty pastries. By night, the ruin bars light up, and you end up clinking cheap wine with travelers from everywhere.

Everything you need is close: Gozsdu Udvar’s food stalls, Metro Line 1, late-night falafel, and many hostels in 19th-century buildings.

• Best for: social travelers who want nightlife without taxi rides.

Belváros–Lipótváros (Downtown & Parliament)

Wake up to the Parliament glowing over the river, grab a pastry on Váci utca, then ride a tram past castles and bridges.

It’s postcard-pretty but also has bookshops, relaxed wine bars, and small parks for lunch.

• Best for: first-timers who want classic views, fast transport, and calm streets at night.

Castle District (Buda)

Cross Chain Bridge to cobbled streets, pastel houses, and Fisherman’s Bastion views at sunrise.

Bars close early, so nights are quiet. You’ll walk uphill and find fewer hostels, but the views pay you back.

• Best for: history fans, photographers, and travelers who like early sleep.

Ferencváros (District IX)

South of the crowds, this area mixes hip coffee shops with old markets that smell of paprika. Riverside paths are great for runs, and the Great Market Hall sits at the north end.

Nights are mellow: think craft-beer tastings under lights, not loud clubs.

• Best for: food lovers, digital nomads, and anyone who wants space and quick trams.

Józsefváros (Palace Quarter)

Once “avoid after dark,” now full of student bars, indie galleries, and big historic buildings.

Cheap dorms sit near the National Museum, rooftop films, and shady courtyards with free Wi-Fi.

• Best for: creative, budget travelers who want local life without tourist prices.

Újlipótváros (District XIII)

North of the center, life slows down. Parks line the Danube, and bike paths stay clear of cars.

Farmers’ markets and bakeries sell fresh rye bread from 8 a.m.

• Best for: slow travelers, runners, and couples who want calm but not suburbs.

Óbuda (Old Buda)

Few first-timers come this far north, which keeps it peaceful. Roman ruins and weekend craft fairs fill quiet squares.

Stays are cheaper, and buses to Sziget Festival leave from here each August.

• Best for: festival fans, history lovers, and budget travelers okay with a 15-minute ride downtown.

Gellért Hill & Tabán

Between green hills and the Danube, this pocket has big views without big crowds.

Hike to the Liberty Statue in the morning, soak in Gellért Baths in the afternoon, and sip wine on the grass at night.

• Best for: nature lovers, wellness seekers, and sunset photographers.

Top 10 Tips for Your First Time in Budapest

• Split the map: Buda is hilly and quiet; Pest is flat and lively.
• Skip airport taxis: take bus 100E and Metro M3 to the center for coffee money.
• Book baths online: Széchenyi and Gellért fill up on weekends.
• Carry coins: old tram machines take cash only.
• Use station lockers: store bags for a few euros if you arrive early.
• Try local wine: a glass of Furmint is cheaper than bottled water.
• Pack earplugs: ruin-bar streets echo until sunrise.
• Follow bath rules: wear flip-flops, rinse first, stay quiet in steam rooms.
• Check student menus: university cafeterias serve cheap meals after 2 p.m.
• Remember tram 4/6: it runs all night along the city’s main line.

Short and crisp: The Best Hostels in Budapest

1. Mp Hostel - best for Groups (10+ people), Solo Traveller
2. Red Bus Hostel - best for Family-Friendly Hostel
3. Hotel & Hostel Rila - best for Digital Nomads, Family-Friendly Hostel, Solo Traveller
4. Station Guesthouse Hostel
5. HI - Budapest - Hostel Schönherz

Best for Groups

Mp Hostel

8.2

District 5

"…The staff were helpful and friendly and we got a good deal with flight/hostel through opodo. more

from

2,946 Ft

Red Bus Hostel

8.7

"…Breakfast is basic but nice and fresh bread is provided. There is a Match supermarket across the more

Hotel & Hostel Rila

8.2

"…In summer 2004 I stayed in this hostel. They give you a nice breakfast. The neighborhood isn't more

Station Guesthouse Hostel

8.5

District 14

"It's not really a hostel; it's an island in its own right. It comes intact with all of the above, more

HI - Budapest - Hostel Schönherz

8.1

District 11

"…WOW! We had a lot of space and slept like babies after a hitchhike trip from Prague. Staff were more

Hostels in Budapest: Why They Rock

Hotels give crisp sheets, but hostels here offer culture and community.

• Old mansions hide garden hammocks; former embassies serve big dinners.
• Staff double as nightlife guides with hand-drawn bar maps.
• Dorms often have privacy curtains and big lockers.
• Shared kitchens cut food costs—cook goulash with new friends.
• Many hostels partner with free walking tours, saving more money.

Final Recommendations

5 Hidden Gemz in Budapest (by Hostelgeeks)

How it works

Bag packed, district chosen, tram pass ready—Budapest is set to give you warm baths, sweet strudel, and nights that blend into dawn.

Stay in the area that matches your style and let the city’s warm, thermal heartbeat sync with yours.

Backpacking Budapest? Here’s What You Need to Know

These are the guides I wish I had before visiting. I’ve been there, had fun, did some minor mistakes, and now I’m passing the best tips on to you. Safe travels!

Must-Read

Solo Travel Budapest

My experience and what you can expect

Where to Stay in Budapest as a Solo Traveler

Best Areas and how to get around

Backpacking Budapest

All those cool and unique experiences we are looking for!

How to Pick a Hostel in Budapest

What to Expect (and what not!)

I stayed in a Backpacker Hostel in Budapest

My experience and what you can expect

About the author: Anna Kiefer

My travels have taken me from the vibrant streets of Vietnam to the tranquil beauty of Spain, each destination adding a new chapter to my journey. For me, travel isn’t about counting countries or ticking off lists; it’s about the freedom it brings and the stories that unfold with each new adventure. At Hostelgeeks, my goal is to infuse our brand with this sense of freedom and discovery.

Whether it’s finding the perfect 5 Star Hostel or sharing a hidden gem in a bustling city, I’m here to ensure that our travelers get more than just a journey – they get an experience that resonates with the joy of exploration and the freedom of the open road.