Why stay in Budapest?
Budapest is Hungary's capital city, and it's really two cities in one - think of it as a two for one deal. On the west side of the Danube river, we have the city of Buda and many hills. On the east side, we have the city of Pest and no hills. In addition to those two general districts, the third - and the one where most visitors spend most of their time - is the Castle Hill area on the west side of the river around (of course) the castle and many other tourist attractions. It's the oldest part of the city.
Budapest's Castle Hill and some of the nearby areas are home to most of the city's popular sights, including the Royal Palace. Inside the Palace you'll find the National Gallery, the Matthew Church and - for a fantastic view across the river - the Fisherman's Bastion. Also in the area you'll find several more quirky and interesting museums, such as the Marzipan Museum and the Pharmacy Museum. On the other side of the river in downtown Pest, you'll find the Parliament Building, St. Stephen Cathedral and the Great Synagogue (largest in Europe) and Jewish Museum. There is also the House of Terror, which details the eras of Nazi and communist rule and is housed in the old headquarters of the secret police.
The most expensive places to stay are, naturally, around the center of most the tourist activity - the area around Castle Hill. If you book a hostel that's not right downtown, that's okay because there are several public transit methods to get you around the city. Also keep in mind that "hostels" aren't just for young backpackers anymore - they're perfect for budget-minded people who want to meet fellow travelers. A few notable Budapest hostels are highlighted here.
Unity Hostel, located near Oktogon and Liszt Ferenc Square, offers dorms or private rooms and free breakfast, linens and Internet access. The Apicolone Hostel is one Metro stop from the main train station and a 15-minute walk to the city center.
Vamhaz Hostel is three houses away from the Danube right next to the central market. Home Made Hostel is easy to access by public transit and has private double rooms or dorms with four, five or eight beds.
If these hostels don't suit your needs, don't worry - there are more Budapest hostels listed here. Just keep browsing the descriptions until you find the right one.
Should you need anything else for your trip to Budapest, you can find it right here. Search for cheap airfare to Budapest and read about what there is to see and do in the city in our Budapest Travel Guide.