The best hotels in Budapest: Great places to stay in 2026

Whenever any A-lister comes to Budapest, the Gresham is often their hotel du choix. It’s not just the location overlooking the Chain Bridge, the staff discretion and quality of service. It’s not the panoramic spa, inventive cocktails at Múzsa or in-room dining from a kitchen that also supplies the excellent KOLLÁZS Brasserie. It’s not even the afternoon teas served on Herend china. It’s the fact that the Gresham is unique, an exquisite hotel conversion of a former office and apartment complex created during Budapest’s Golden Age 125 years ago, a contemporary transformation that honoured its Art Nouveau heritage right down to the multi-tiled mosaics and peacock motifs forming the stunning lobby. Luxury, a Hollywood celeb can get in any city. One-of-a-kind takes seeking out. 

The Gresham owes its name and its existence to the London insurance company which had architect Zsigmond Quittner and the Vágó brothers, József and László, re-design this building in the Art Nouveau style all the rage in 1907. Around and above its offices were sought-after apartments. Between the wars, the café on the ground floor attracted spies, diplomats and Budapest's demi-monde, the business closing in 1947 with nationalisation. For the rest of the post-war period, the national tourist office set up operations here.

In the early 2000s, the Canadian high-end hotel group Four Seasons took over the property, retaining and upgrading its original features of a century before. Opening in 2004, the hotel was bought in 2011 by the State General Reserve Fund of Oman, which left to Four Seasons to operate it.

Time Out tip: In-house cocktail bar Múzsa ('Muse') hosts a regular programme of live musical entertainment

Neighbourhood: Belváros-Lipótváros

Address: Széchenyi István tér 5-6, 1051 Budapest
Price: From around Ft 260,000 (€650), advance purchase up to 20% off
Closest transport: Tram 2 to Eötvös tér or Széchenyi István tér

You may walk into one of Budapest’s many five-star hotels and struggle to remember it later that same day. You’ll never forget the Aria. A courtyard area created from a vast piano keyboard greets you upon your memorable entrance – perhaps, actually, a pianist as well – and introduces the musical theme that extends to the room types, the range of tunes you may select once ensconced and the live performances from London’s Royal Opera House screened in the in-house cinema.

You needn’t be a guest to experience the Aria first-hand, its basement Harmony Spa and rooftop High Note Sky Bar at eye level with the clock atop the Basilica. Sunset here, the last rays winking over the skyline of Buda, really does last a lifetime.

The Aria was created by Henry Kallan, whose childhood visits to Budapest from his family home in what was then Czechoslovakia left a lasting impression. Emigrating to America and rising from busboy at The Gotham Hotel in New York to general manager, Kallan then set up a chain of exclusive properties, The Library Hotel Collection, in key cities around the world. His dream of opening his own hotel in Budapest was realised in 2015, transforming a seemingly non-descript building near the Basilica thanks to then little-known Hungarian designer Zoltán Varró.

Varró's concept was revolutionary, taking the theme of music and running with it – few other hotels in Europe stimulate the first-time visitor upon entering as much as this one. The Aria launched Varró's career as a sought-after designer of key hotels around the world, and sealed Kallan's global reputation as a cut above in the cut-throat world of hotel ownership.

Time Out tip: If you're a fool for a macaron, you're in luck – it's the speciality at the in-house Café Liszt, where even this delicate French confection is music-themed – Ella Fitzgerald, anybody?

Neighbourhood: Lipótváros

Address: Hercegprímás utca 5, 1051 Budapest
Price: From around Ft 144,000 (€360) per night
Closest transport: M1/M2/M3 Deák Ferenc tér

The first of the new-wave of five-star hotels in Budapest, between the gaudy glitz of the Communist era and the contemporary creations of the early 2000s, the Kempinski has remained at this elevated level thanks to several factors. Its location on what is now today Fashion Street, three minutes from the Danube, will always play in its favour, but it’s also the pioneering design of architect József Finta, and regularly changing collection of original art on display that have kept the Kempinski ahead of the game. Throw in a luxury spa, a quality restaurant and cocktail bar, and you can see why Formula 1 drivers return here every summer like swifts.

Of late, the suites have been seriously upgraded to feature clever design solutions and a wonderful sense of space, not to mention views of the Basilica and the Big Wheel. Some also overlook the Michael Jackson Memorial Tree, in one corner of Erzsébet tér, located where fans stood to greet the pop star waving to them from the window here in 1996. Ask nicely, and staff will show you the visitors' book, containing Jacko's signature as well as those of the equally illustrious music, film and sports stars who have stayed here since 1992.

Of the dining and drinking options, ÉS Bisztró offers one of the best Sunday brunches in town, the rest of the week given over to serving high-quality steaks and grilled-meat dishes. The innovative cocktails at Blue Fox have seen it feature in the top 500 bars in the world while Bobby De Niro himself came to Budapest for the opening of his signature Japanese restaurant, Nobu. 

Time Out tip: With each change of season, the Kempinski offers up to 20% off stays of up to four nights or more (15% for three nights), which also includes the luxury of a 2pm check-out

Neighbourhood: Belváros

Address: Erzsébet tér 7-8, 1051 Budapest
Price: From around Ft 80,000 (€200) per night
Closest transport: M1/M2/M3 Deák Ferenc tér

The most venerable lodging in Budapest opened as the Grand Hotel Royal for Hungary’s 1896 millennial celebrations, welcomed the Lumière Brothers shortly afterwards and housed one of the city’s earliest cinemas. Not only rebuilt but significantly expanded under the Maltese Corinthia group, the hotel added a luxury spa and stylish atrium brasserie but retained its fin-de-siècle elegance. Though on the fringes of the city centre, well away from the river, the Corinthia overlooks the frequent 4/6 tram, near the yellow M1 metro line for Heroes’ Square and the Széchenyi Baths.

For the first decades of its long existence, the Royal was a major landmark in town. The conversion of its ballroom into a cinema, the Royal Apollo, not only meant the screening of features by Hungarian directors before they made their mark abroad – mothers and wives of soldiers fighting at the front during World War I would watch newsreel films for news of their loved ones.

Bombed during World War II, damaged during the 1956 Uprising, the hotel came into State control before closing in 1991. A decade later, the Corinthia group invested £100 million in its complete reconstruction, the only original feature being the cinema, now reconverted into the ballroom. A modern extension was added, the two halves of the hotel connected by an elevated walkway.

The most impressive part of the rebuild, the basement spa is considered one of the finest in town – no idle boast in Budapest – and comprises a 15-metre pool, saunas and a hot tub. Also open to non-guests, it lists a number of treaments, including aromatherapy and hot stone.

Time Out tip: Steak, schnitzels and Hungarian favourites are the specialities at the in-house Brasserie & Atrium restaurant

Neighbourhood: Erzsébetváros

Address: Erzsébet körút 43-49, 1073 Budapest 
Price: From around Ft 95,000 (€240) per night, advance Ft 80,000 (€200)
Closest transport: M1 Oktogon or tram 4/6 to Király utca

What the Marriott lacks in architectural style – it was built in 1969 as the Duna InterContinental and still resembles something out of Thunderbirds – it makes up for in location, location, location. There’s a reason Liz Taylor chose to hold her 40th birthday party here, and that’s the jaw-dropping views from what is now the Liz & Chain rooftop bar, the ballroom terrace and many of the rooms. You’re right over the Danube, the bridges and Buda landmarks putting on their nightly light show purely for your entertainment. Its DNB restaurant offers possibly the best Sunday brunch in town, amid strong competition.

The original Duna InterContinental was the first major work created by notable architect József Finta, later responsible for the Kempinski round the corner. Unveiled to greet the new decade on New Year's Eve 1969, the InterContinental was unusual in that it was built with Western investment as the city's first major showcase hotel. When Queen played their landmark concert here in 1986, the group stayed here, greeting fans from a boat outside on the Danube.

Privatised in 1994, converted into the Marriott, the hotel maintained its status, both as an upscale lodging, dining destination and prime spot for private events. Guests can book a personal trainer for the gym and massage treatments with essential oils in the spa centre.

Opening from 5pm every day, the Liz & Chain rooftop bar provides another reason to visit, outstanding views from its ninth-floor vantage point accompanied by cocktails, mocktails and quality bites such as Wagyu beef tartare or beef tacos. Note also the inclusion of Mad Scientist craft beer, promoting these local Budapest brewers.

Time Out tip: For that memorable occasion with the stunning backdrop of Budapest behind you, the Marriott offers a Wedding Planner for all kinds of options, budgets and guest numbers.

Neighbourhood: Belváros

Address: Apáczai Csere János utca 4, 1052 Budapest
Price: From around Ft 145,000 (€365) per night
Closest transport: M1 Vörösmarty tér/tram 2 to Vigadó tér

In direct competition with its neighbour, the InterContinental has a better spa than the Marriott, contains the city’s largest naturally lit ballroom and takes in pretty much the same Danube views as the five-star next door – yet still has to offer that something extra. This could be why it serves Lebanese cuisine at its panoramic ARZ restaurant and not standard Hungaro-international, and why cocktails in the Corso Bar are served in Rubik’s Cubes and not glasses. The InterConti, as it is known, is also a notch above in terms of comfortable beds and in-room work spaces.

Like the Marriott, the InterContinental was designed by award-winning Hungarian architect József Finta, opening its doors as the Forum Hotel in 1981. Privatised a decade or so later, it became part of the InterContinental portfolio in 1996. With competition fierce in this narrow yet burgeoning field, the InterConti soon upped the ante on its spa offer, meaning that treatments here are seasonal – Scent of Autumn involves a full-body orange-and-cinnamon massage.

At the main restaurant, the switch to Levantine cuisine was a bold but popular one, ARZ specialising in meze, sharing platters and grilled meats, while wines are all Lebanese. The Corso is both a restaurant (noon-10pm) and a bar (9am-midnight), the former leaning on Hungarian favourites (catfish stew, Hortóbágy angus steak), the latter on Hungarian inventions for its cocktail creations, hence the Rubik's Cube, Bíró pen and Béres drops. Both bask in outstanding views of the Danube and Buda cityscape - which is why guests are happy to fork out that little extra for a suite, Classic River View or Premium room.

Time Out tip: For those driving to Budapest, the InterConti can offer valet parking and two EV chargers

Neighbourhood: Belváros

Address: Apáczai Csere János utca 12-14, 1052 Budapest
Price: From around Ft 132,000 (€330) per night
Closest transport: M1 Vörösmarty tér/tram 2 to Eötvös tér

The only Budapest property integral to the Hyatt's Unbound Collection, this prominent landmark near Elizabeth Bridge was once a shopping arcade, then a financial centre. Prepare to be left in awe as you now take in the building's historic grandeur, a relatively recent hotel conversion showcasing its elaborate atrium today topping a glittering café. The restaurant and champagne bar also serve high-quality fare in opulent surroundings – though with the city centre on your doorstep, many options abound.

The Párisi Udvar was originally the Brudern House, named after the Moravian baron who commissioned Mihály Pollack, later of National Museum fame, to create an ornate shopping arcade in 1817. By the end of the 19th century, the Parisian-style passage had long been overshadowed by the urban attractions around it and had fallen into disuse. 

When financial institution, the Belvárosi Takarékpénztár ('Inner-City Savings Bank') took it over in the early 1900s, they had to rebuild it from the ground up. Conscious of the building's history, German architect Henrik Schmahl created a banking headquarters around an ornate shopping arcade on the ground floor, calling it the Párisi Udvar. Tiling was sourced from the renowned ceramics company from Mettlach, Villeroy & Boch.

The gorgeous mix of Moorish and Gothic styles survived World War II but not the Communist takeover that followed it, which stripped out all its finery and installed several key institutions, including a popular ice-cream shop. For many years after the change of régime in 1989, the Párisi Udvar remained a dark passage of time-worn outlets flogging maps and tourist souvenirs.

Although forcing the closure of the ice-cream shop, the conversion to a hotel from 2015 onwards restored the Párisi Udvar to its former glory, centrepiecing the courtyard as a glittering walk-through café beneath a gorgous atrium. Around it, 110 guest rooms include 18 suites, two of them presidential, while the Zafir Spa also forms part of the Bridal Experience, one of several packages on offer. 

Time Out tip: Those booking an event here can keep their guests occupied and entertained with the Párisi Mystery, an interactive game involving the unique architectural history of the building

Neighbourhood: Belváros

Address: Petőfi Sándor utca 2-4, 1052 Budapest

Price: Ft 155,000 (€390), advance rate Ft 125,000 (€315)

Closest transport: M3/bus 7 to Ferenciek tere, tram 2 to Március 15. tér

Don’t worry, those queues snaking round the block are not guests trying to check in, they’re for the legendary café around which this hotel was created in the early 2000s. Now run by the Thai Anantara group, the New York still basks in the reflected glory of Budapest’s most illustrious coffeehouse, but that doesn’t mean to say that its 185 suites and guestrooms aren’t just a comfortable place to stay in themselves, they most certainly are. You can also take advantage of the spa, massage treatments and heated pool – and, of course, skip the queue for the coffeehouse.

The New York Palace began life as a chance meeting at the Café de la Paix in Paris, where Hungarian newspaper correspondent Miksa Arányi described the business opportunities available back home in Budapest to the director of the New York Life Insurance Company. Setting up its Hungarian branch in 1887, Arányi soon set about commissioning a headquarters worthy of such a prestigious organisation, bringing in chief architect Alajos Hauszmann, at the time also working on the revamping of the Royal Palace in Buda. No expense was spared on its decoration.

Unveiled in 1894, these insurance headquarters also featured rental apartments, retail outlets and, most notably, a glittering coffeehouse which outshone its many ornate counterparts across the city. On its opening night, playwright Ferenc Molnár famously threatened to throw the keys to the café into the Danube so that it would never close – leading to one of Budapest's most enduring and endearing urban myths, itself inspiring a statuette created in recent times by sculptor Mihály Kolodko.

The café became the meeting place for the city's burgeoning film industry, later Hollywood director Mihály Kertész (Michael Curtiz of Casablanca fame) entertaining potential starlets here. Converted to newspaper offices after 1945 by the Communist authorities, the New York lay neglected even after the régime change, and it wasn't until 2000 that Italian group Boscolo bought the property with a view to creating a luxury hotel.

Arriving after similar conversions of the Gresham and the Corinthia, the New York struggled to attract the limited number of high-spending visitors to Budapest, particularly after the financial crisis of 2008. It wasn't until Boscolo's sale to US investors in 2017, and the hotel's rebranding and relaunch as Anantara, that this five-star gem rediscovered its élan and revamped its spa, free for guests to use.

Time Out tip: Among the massage treatments at the spa, the Hungarian mud therapy uses the restorative benefits sourced from the world-famous thermal lake at Hévíz 

Neighbourhood: Erzsébetváros

Address: Erzsébet körút 9-11, 1073 Budapest
Price: From around Ft 105,000 (€265) per night
Closest transport: M2 or tram 4/6 to Blaha Lujza tér 

Part of the Marriott's exclusive Autograph Collection, the Dorothea reclines over three historic buildings from separate eras, by the showcase square of Vörösmarty tér. Each of the 216 rooms and suites has been curated by Milanese designer Piero Lissoni, and feature sleek four-poster beds, dark hardwood furnishings, and sumptuous bathrooms with freestanding baths and terrazzo vanity sinks. Huge windows complete the picture. It’s a place full of surprises, not least the glass-roofed, plant-filled Pavilon restaurant serving Hungarian dishes. There’s a spa too, with a small heated pool, and you could only be more central if you moved your bed to the middle of focal square Vörösmarty tér a few steps away.

Lissoni not only successfully merged three buildings together but imbued each with a sense of the Hungarian heritage which inspired the Dorothea in the first place. While it is the Empress Elisabeth of Bavaria – known as Sisi to all Hungarians – who is most revered, it was the German-born Archduchess Dorothea, third wife of the Archduke Joseph, Palatine of Hungary, who helped set the creation of this Habsburg metropolis in motion. A fervent Lutheran in this Catholic part of Europe, Hungarian-speaking Mária Dorottya built churches in Buda and Pest, and established nurseries and children's hospitals. The street here was duly named after her.

Forced to leave her main residence at Buda Castle after the death of her husband, Dorottya lobbied for clemency during the bitter reprisals following the Hungarian uprising of 1848-49 and eventually snuck back into Buda in 1855, where she died. The Hungarian decoration installed by Lissoni in the Weber Building harks back to this era, the 19th-century art and 5,000 tile Zsolnay ceramic wall.

Time Out tip: If you're here at the weekend, don't feel you have to rush – the hotel's Lazy Breakfast operates until 1pm

Neighbourhood: Belváros

Address: Dorottya utca 2, 1051 Budapest
Price: From around Ft 110,000 (€280) per night
Closest transport: M1 Vörösmarty tér/tram 2 to Vigadó tér

Relax amid Habsburg grandeur in the capable hands of expert masseurs at this bucolic hideaway on Margaret Island. Secluded by greenery and the Danube alongside, guests in the 164 classically furnished rooms may access the plentiful pools of sister hotel, the Ensana Thermal Margaret Island, through an underground corridor. Physiotherapy, electrotherapy, mud packs and a salt cave, many kinds of treatments are offered. An on-site restaurant, bar and brasserie mean you needn’t leave the hotel at all, though it’d be a shame not to wander around the island, Budapest’s most revered green getaway.

Both the Ensana Grand and the Ensana Thermal owe their existence to two of the great figures of 19th-century Budapest: water engineer Vilmos Zsigmondy, upon whose work the Széchenyi Baths were later created; and Miklós Ybl of Opera House fame. In 1866, Zsigmondy drilled for thermal water by the west coast of the island – upon its discovery six months later, the Archduke Joseph had Ybl draw up a plan to partition Margaret Island into areas of recreation. The spa zone and its two hotels were the result.

Named the Nagyszálló ('Grand Hotel'), it opened its doors in 1873 and soon welcomed no few leading writers and political figures. Becoming part of the Hungarian Danubius chain in the later 1900s, the Grand was last renovated in 2019, by which time it was under the umbrella of leading spa-hotel chain Ensana, whose portfolio includes Hévíz, Buxton and Marienbad.

Connection with the Thermal allows guests to take advantage of its five pools, 44 treatment rooms, sun terrace and solarium, with three areas given over to underwater massage therapy.

Time Out tip: Couples can book a spa session at a private treatment room designed for relaxation à deux

Neighbourhood: Margitsziget

Address: Zielinski Szilárd sétány, 1007 Budapest
Price: From around Ft 70,000 (€180) per night, advance Ft 65,000 (€165)
Closest transport: Bus 26 to Szállodák (Hotels) 

This family-owned boutique hotel in the Castle District has 11 stylish and relatively affordable rooms decked out in exquisite vintage furniture. Staying amid these cobbled streets means more than proximity to the main sights of Matthias Church and Buda Castle – after dark, you pretty much have the place to yourself, with few cars but for the odd passing taxi. Baltazár also houses a Michelin-recommended restaurant serving grilled dishes for carnivore and vegetarian alike. 

There's more to this prestigious location than just tranquillity. Baltazar is a key flagship of the local Zsidai Group, which built its empire of gastronomy and hospitality on the nearby Habsburg-tinged Pierrot on Fortuna utca. Overseen by Ilona and Péter Zsidai from 1982 onwards, this refined restaurant welcomed many a film and music star staying in the Castle District away from the crowds.

Their son, Rochester-born Roy Zoltán Zsidai, learned much of his trade as a youngster at the Pierrot, forming the family-named brand in 2007. Zsidai junior's skill not only lay in creating unique eateries and lodgings, but in joining forces with globally renowned names such as Jamie Oliver, whose Italian restaurant sits round the corner on Szentháromság utca. 

With its 11 individually designed rooms, the Baltazar was developed along roughly the same lines as its stablemate close by, Pest-Buda on Fortuna utca, another restaurant-and-accommodation operation echoing the age of medieval inns.

For all that, Baltazár is very much contemporary, namechecking Warhol, Vivienne Westwood and Basquiat as the inspirations behind its decor and furnishings. Bathtubs come with rain showers, while one suite has its own in-room Finnish sauna. The Friends & Family Suite is just that, two bedrooms in one luxury private space.

Time Out tip: The in-house Baltazár Grill Restaurant does not mess about where burgers are concerned – with Argentine rib eye another succulent possibility

Neighbourhood: Castle District

Address: Országház utca 31, 1014 Budapest
Price: From around Ft 110,000 (€280)
Closest transport: Bus 16 to Kapisztrán tér 

The high-end Kimpton BEM has recently taken over a 19th-century neoclassical building on the Buda side, combining elegance with river views. The design-forward interiors consist of mosaic details, towering sculptures and bold furniture, with a high curve-ceilinged restaurant that pushes the boundaries of the contemporary aesthetic. Expect imaginative Mediterranean-Hungarian delights at the restaurant and signature cocktails at the Bar Huso. And for dog owners permanently seeking a high-end stay for their four-legged friend, seek no further – "any animal that can fit in the elevator is welcome at our hotel". 

It was rebellious maverick designer Marcel Wanders who was entrusted to fashion a five-star hotel from a neat but staid heritage building overlooking a square many pass by but few stop to spend much time around. Named after the Polish general, József Bem, who fought with Hungarian forces against their Habsburg overlords in the uprising of 1848-49, this patch of greenery is best known as the spot where students gathered before sparking the fateful Hungarian Uprising of 1956.

Whether the Kimpton BEM has enough about it to make its namesake square a new destination of choice – close to the burgeoning Margit Quarter – is yet to be seen. Certainly, its AGOS and Fennen restaurants look the part, while the décor at the Bar Huso, inspired by the creatures of the deep, must have salvaged a fair few stilted conversations on quieter nights.

Time Out tip: If you're here for a business meeting, the Dinner, Bed & Breakfast package may not be a bad option if you don't have time to head elsewhere

Neighbourhood: Víziváros, between Margaret Bridge and Batthyány tér on the Buda side.

Address: Bem József tér 3, 1027 Budapest

Price: From around Ft 160,000-180,000 (€400-450)

Closest transport: M2 Batthyány tér/tram 4-6 to Margit híd, budai hídfő 

Close to the banks of Danube, a short walk from Parliament, the Áurea Ana Palace occupies a historic building that was partly built in 1847, partly in 1895, when the Austrian delegation was housed here to keep a wary eye on their Habsburg neighbours. Five-star comfort now involves room service, a spa and small pool, an ostentatious bar and a restaurant spread out beneath lofty ceilings and portraits of Habsburg empress Sisi. All creates a particular kind of mood, helped along by the tasteful guestrooms and communal spaces.

While nearly half a century divides the adjoining houses at Nos.15 and 17, the one figure now chosen to decorate them, also unites them. Elisabeth of Bavaria, revered in Hungary as Sisi, had not yet married Franz Joseph when the first property, a residential building, was opened in 1847. By 1853, they were betrothed yet Sisi would soon escape the stifling court of Vienna for the gaiety of Budapest. Not only did she learn the local language but would espouse the Hungarian cause for autonomy at the Hofburg. 

Eventually, Franz Joseph gave in, and following the Compromise of 1867, Austria was forced to send a delegation to Budapest as de facto equal partners – hence the second administrative building, unveiled shortly before Sisi's murder at Lake Geneva by an Italian anarchist in 1898.

In creating this hotel, two original features from the Habsburg era have been recovered, revamped and reinstated: a tripartite entrance for carriages, destroyed after World War I; and the candelabra over the main staircase, which dates back to the year of Hungary's millennial celebrations, 1896.

Time Out tip: The Áurea in-house outlet sells branded items for every occasion, from romantic candles to elegant pyjamas 

Neighbourhood: Lipótváros

Address: 15 Akadémia utca 15-17, 1054 Budapest
Price: From around 72,000 (€180) per night, advance booking Ft 64,000 (€160)
Closest transport: M2/tram 2 to Kossuth Lajos tér

Hotel Moments occupies a palatial building on the showcase boulevard of Andrássy út. The 99 rooms in this four-star lodging are clustered around an elegant wrought-iron courtyard, providing a sense of space and light. A 24-hour concierge service should appeal to American guests, staff don’t skimp on breakfast, and flowers and champagne can be brought to your room for that special occasion. A modest gym and sauna have been squeezed in downstairs, and that’s the dome of the Basilica in full view from the upper floors. For a serious soak and swim, the Széchenyi Baths are literally five minutes away by M1 metro nearby.

Proximity to the Opera House on Andrássy út may have been what the planners had in mind when they decided to include Marshall speakers in the Junior Suite and Signature Design Room. Concert tickets may be booked through the concierge, as well as airport transfers, sightseeing tours and restaurant reserations. A Nespresso coffee machine is common to all guest rooms. 

Those in town for less highbrow culture might note that Budapest's nightlife zone is a short stagger away, the other side of Király utca. All guests can take advantage of the Lebanese and Syrian cuisine offered in the in-house Zenobia restaurant. The 80-person capacity Conference Room should beat out the considerable competition nearby with that essential element beyond the provision of a projector, projecting screen, built-in sound system and flipchart: daylight. No more emerging from a gloomy presentation session into the welcome relief of the outside world.

Time Out tip: For the cheapest daily rates and any online promotions, check the hotel's booking engine at least 11 months before you plan to arrive

Neighbourhood: Terézváros

Address: Andrássy út 8, 1061 Budapest
Price: From around Ft 105,000 (€260) per night
Closest transport: M1 Bajcsy-Zsilinszky út 

The history of the Mystery Hotel is almost as obscure as the bewildering design features of this unusual lodging. A former freemasons’ hall, it hosted many a bizarre ceremony, inspiring Budapest’s most outré interior designer, Zoltán Varró, to use this legacy as fuel for his vivid imagination. Nothing seems real, from the Secret Garden Spa to the Sky Garden Rooftop Terrace. The Mona Lisa also gets a look-in. The location is a bit meh, but allows you to use the red trolleybuses that patrol this part of town. Showcase boulevard Andrássy út is one stop or ten minutes’ walk away.

It isn't only the origins of the building that might baffle the curious visitor but its shape – Varró and the architectural team have had to come up with inventive solutions to strange configurations to come up with the Duplex King – its bedroom a floor above the bathroom – and the family-friendly Deluxe Twin for interconnecting corner rooms.

One constant is the Greek columnar styles, Corinthian, Doric, Ionian, that feature throughout, extending to the Sky Garden Rooftop Terrace, where the signature cocktail is a Mystery Fizz of Japanese Roku gin and the little-seen Italian aperitivo Italicus Rosolio di Bergamotto. Breakfast is taken on the fourth floor by ascending the iron spiral staircase to the freemasons' loggia, the Great Hall, once the scene of bizarre ceremonies, now the stage for a buffet spread. For the six colder months of the year, evening meals are served here – in warmer climes, head upstairs to the roof garden.

Time Out tip: Every August 20, Budapest celebrates Hungary's national day with a spectacular show of fireworks in the evening. Few vantage points are better suited to taking in the event than the Sky Garden Rooftop Terrace, its relatively recent opening meaning it's still off the radar for many Hungarians

Neighbourhood: Terézváros

Address: Podmaniczky utca 45, 1064 Budapest
Price: From around Ft 60,000 (€150) per night, advance booking Ft 54,000 (€135)
Closest transport: M3/tram 4/6 to Nyugati pu, trolleybus 72/76 to Ferdinánd híd (Izabella utca)

Boutique hotels, trendy cafés and cool stores are now regularly popping up around Budapest’s Palace Quarter, where noblemen once had their pieds à terre close to Parliament which then convened at the National Museum nearby. The Palazzo Zichy has been here for some time, initially finding it hard to attract higher-paying guests to what was a sketchy area until fairly recently. Gentrification has been kind, even useful, without being overbearing.

Once inside, you find modern, stylish comfort, and a modest on-site spa. Outside, you step into cosmopolitan bustle, close to Budapest’s main tram route, with the city centre walkable. You're no more than five minutes away from where the 100E airport bus drops you at Kálvin tér.

Breakfast is taken to each of the 80 guest rooms in current occupation, whether you've opted for the Deluxe or Junior Suite, and kettles and coffeemakers feature throughout. Those noble Parliamentarians of yesteryear would also have been grateful for the air-con as Budapest swelters.

The spa does its best but those with more time on their hands can easily hop on green metro line 4 from nearby Ráköczi tér to Gellért tér, and the famed baths of the same name – the Rudas is also close by. The Palazzo Zichy nods towards the business visitor with meeting rooms that can be configured according to requirements. Staff are invariably mentioned in dispatches whenever any recent guest leaves a review, always a good sign.

Time Out tip: Booking the Palazzo Zichy's Relax Experience not only entitles you to a one-hour massage but late check-out until 1.30pm.

Neighbourhood: Palace Quarter

Address: Lőrinc pap tér 2, 1088 Budapest 
Price: From around Ft 48,000 (€120) per night, advance booking Ft 32,000 (€80)
Closest transport: M4 or tram 4/6 to Rákóczi tér

Not every Budapest hostel is a party hangout. The laid-back Shantee House sits in residential Buda, near the trendy cafés and galleries of Bartók Béla út. There’s a communal kitchen, and if you prefer sleeping in the great outdoors, you can camp in the garden or slumber in a hammock (lockers are available). And if you’d prefer not to share a dorm but still want to save money, you can book your own bedroom, either en-suite or with shared facilities. Prices are still as cheap as the many less attractive shared lodgings in Pest, and you’re spared the noisy revelry.

The fact that Shantee House isn't just another forint flytrap for the summer's many backpackers and Interrailers is thanks to the origins of the people who set it up. Attila put enough hard yards trekking around Asia to know what the weary, wallet-conscious traveller needed when flopping through the door of such a hostel – warm showers, plentiful powerpoints and a pleasing amount of greenery were always high on his check list. (Attila was also responsible for building the Asian-style gazebo himself.) Sustainability is another important factor, with a system in place to ensure a relatively low consumption of water and energy.

All in all, Shantee House is pretty much a textbook example of how to operate a convivial hostel and still run a business according to your principles.

Time Out tip: For students and digital nomads, Shantee House offers long-term stays depending on budget and length of residence. Email shanteehouse@gmail.com 

Neighbourhood: Újbuda

Address: Takács Menyhért utca 33, 1113 Budapest
Price: Dorm bed from around Ft 6,000 (€15), private single Ft 16,000 (€40), private double/yurt Ft 46,000 (€115) per night
Closest transport: M4 Újbuda-központ or tram 19, 47 or 49 to Karolina út

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