The range of hotel options available in Budapest spans from smaller, inexpensive pensions to ultra-luxurious five-star hotels. Overall, the cost of accommodation in and around the city is considerably higher than elsewhere in Hungary.

Most of the pricier choices are in the Castle Hill area, and the hostels appealing to budget conscious travellers predominate across the river in Pest. The air quality is better on the Buda side, due to the hills and the proximity of the forests that lie to the west of the city.

The Buda Hills are popular with many visitors as they provide respite from the noise and crowded streets of Pest on the other side, as well as great views of the river and the city. There are mid-range options here, such as the Grand Hostel Budapest and the Europa. The latter is an apartment-style hotel suitable for long-term stays. Other choices in the mid-range are the Victoria Hotel, the Kristaly Panzio and the Panda Hotel, all offering comfortable guest rooms and excellent service.

In District III, visitors will find a selection of hotels located along the Danube River. The Ramada Plaza Budapest features the famous local thermal waters, while the Monte Christo offers a swimming pool as well as a private beach on the river. The Dunapart Hotel incorporates a ship's cabin in its structure, and offers lovely Danube views.

In the city centre, on the Pest side, there is a full range of accommodation on offer, from budget hostels to luxurious world-class properties. In the top range, several international chains are represented, including the InterContinental, the Marriott Hotel and the Sofitel Atrium, all boasting Danube views. The Kempinski Hotel Corvinus is probably the most luxurious address in Budapest.

For superb service, as well as stunning views of the Danube River, the Four Seasons Hotel Gresham Palace is a good choice. More modest choices include the Diaksport and the Yellow Submarine Youth Hostel.

Many visitors to Budapest come specifically for its healing thermal waters. Some hotels have incorporated thermal baths into their structures, with the famous Gellert Hotel being the most well-known example. The Gellert Baths are one of the city's attractions and are open for public use.

For budget travellers who are looking for the best possible city views, there are panzio (pensions) located in the Buda Hills that are quite reasonably priced. Another option is the one-star Hotel Citadella, perched atop Gellert Hill.