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Picking a place to stay in Budapest is a pleasure: there is something for everyone. The hardest part is deciding what you want as with so many tempting options. Even in the middle of summer and the height of tourist season, you should still be able to get a room somewhere. The notable exception is Formula 1 (Grand Prix) weekend in August: hundreds of thousands of fans descend on the city, and hotels, panzios and hostels are booked up for the event up to a year in advance. Still another option is to stay in a private room: these are usually rented out by ordinary people trying to supplement their income. It's a great way to meet the locals (even though you may not have any language in common!) and the service is regulated. Breakfast is almost always included in the quoted hotel prices, and many places - including panzios, offer wonderful food in their own restaurants.
You need to decide what you want before you start making calls. Would you prefer being right downtown? Do you want incredible views? Maybe you want a spa hotel, or a quiet, peaceful sojourn in the fresh air of the Buda Hills?
District II and District III
One of the best things about being in Budapest is the proximity of the Buda Hills. These are wonderfully green and in many places provide spectacular panoramas over the city and the Danube. If you want to enjoy the hectic pace of the city by day, but feel like you are in the countryside at night, then you will want to stay in the hills. The air is clean, the birds sing to wake you up in the morning and there are dozens of possibilities for hiking, biking etc., all over the area. For all this and more at extremely affordable prices the Grand Hostel Budapest is an ideal place in which to stay. The Europa is an apartment-style hotel for those planning long-term stays in the city. Other elegant options include the Victoria Hotel, the Kristaly Panzio and the Panda Hotel, all of which offer excellent customer service and comfortable rooms.
District III also offers many wonderful accommodation options. A hotel that offers thermal waters is the Ramada Plaza Budapest. The Monte Christo Hotel has a private beach and swimming pool, ideally located near Roman Beach. The Dunapart Hotel is set within the cabin’s of a real ship, and offers stunning views of the Danube. Close to the Szentendrei Island is Duna-Party Panzio, which is convenient to many public transportation options.
District V
If you want to be right downtown, then you have a choice of everything from backpackers' hostels to luxurious world-class hotels. Among the latter, the Marriott Hotel, InterContinental and Sofitel Atrium have fantastic views over the River Danube, while the Kempinski Hotel Corvinus offers some of the most luxurious accommodations in the city. To get the best of both worlds try the beautiful Four Seasons Hotel Gresham Palace,where you'll be treated like royalty while you look out over the river. Other good choices in the center include the Yellow Submarine Youth Hostel or the Diaksport.
District XI
Many people come to Budapest to take advantage of the healing thermal waters that spill out of the ground in various locations. Several hotels have incorporated this into their actual buildings; the most famous example being the Gellert Hotel. The Gellert Baths are justifiably famous and can be used by anyone (they are usually considered a must-see on a trip to Budapest).
If you're in the budget category, you can still have a great view of the city: some of the panzios in the Buda Hills are very reasonably priced. There is also the one-star Hotel Citadella, which sits atop Gellert Hill. The views from up here are so stunning that the tour buses drive by from morning until night. So what will it be? Five stars and a balcony on the Danube? A quiet panzio in the Buda Hills? Or maybe a happening downtown hostel with an all night bar and disco...the choice is yours.
District XII
The Buda Hills are where you will find many of Budapest's panzios. These are usually family-run guest houses. The standards can and do range from being almost hostel-like to very luxurious indeed. Staying at a panzio is a great way to meet the locals. One of the best, with stunning views of the twinkling city below, is the Molnar Panzio. The Danubius Health Spa Resort Margitsziget and the Grand Hotel on Margaret Island.
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