Where to Stay in Budapest for Christmas Markets: 5 Best areas

Hi guys, on my website, I already wrote an article about staying in Budapest for first-timers (I will put the links to it at the end of this article). In today’s article, I will help you to find the best places to stay in Budapest for Christmas Markets.

I will provide you with a list of what I believe are the best areas to stay in Budapest for Christmas Markets, along with a helpful map. I’ll also share where I stayed in Budapest and recommend some of the best hotels in Budapest for Christmas Markets for all budgets.

Budapest has several christmas Markets, but some of the best Budapest Christmas Markets in 2023 are:

  • Christmas Markets at Vörösmarty Square
  • Christmas Fair at St. Stephen’s Basilica  
  • Ujbuda Christmas market At The Allee Shopping Centre 
  • Advent In Óbuda, Main Square (Fő tér)

BudapestChristmas markets typically run from late November to early January. The main Christmas market in Budapest is typically held in Vorosmarty Square, located in the heart of the city. This square is beautifully decorated with lights and features a large Christmas tree.

Budapest’s Christmas market is renowned for its stunning holiday decorations, including lights, ornaments, and a large Advent calendar that reveals a new window every day in December.

Be sure to try traditional Hungarian holiday foods, such as chimney cake (kürtőskalács), goulash, fried sausages, and other local delicacies. Also, warm up with mulled wine or spiced hot chocolate.

The market is an excellent place to buy unique Christmas gifts and souvenirs. You’ll find various stalls selling handmade crafts, ornaments, and other items.

You can enjoy live performances, including traditional Hungarian folk music and dance. There are often free concerts and events, adding to the festive atmosphere.

In Budapest, you’ll often find ice skating rinks set up near the Christmas market. It’s a fun activity for visitors of all ages.

The city is famous for its thermal baths, and taking a dip in one can be a great way to relax and warm up during the winter months.

Don’t miss the opportunity to explore Budapest’s historic sites, including Buda Castle, Fisherman’s Bastion, and the Parliament Building, all beautifully lit up for the holidays.

It can be quite cold in the winter, so be sure to dress warmly with layers, a good coat, and comfortable shoes for walking.

Budapest has an efficient public transportation system, including trams, buses, and the metro. You can consider buying a Budapest Card for discounted access to various attractions and public transport.

Where to stay in Budapest for Christmas Markets?

The best areas to stay in Budapest for Christmas Markets are District V Belváros – Lipótváros, District I Castle District, District VI Terézváros, District VII Erzsébetváros, and Palace District. These are all popular areas for tourists, offering easy access to all markets on foot and by public transportation.

District 5 Belváros – Lipótváros is the most popular area to stay in Budapest for tourists who want to stay in the heart of the city. It is the Downtown Budapest and has the highest concentration of Christmas markets including the ones at Vörösmarty Square and St. Stephen Basilica.

If you book your stay in District 5, you will be located within walking distance from all major Christmas markets and historical landmarks. This district has plenty of accommodations for all budgets, so I’m sure you will find a hotel that suits your budget and preferences.

You can also book your stay in the 1st district or The Castle District, a quieter and more relaxed area with a unique atmosphere during the holidays. You can have beautiful panoramic views of the city and the Danube River, and explore its medieval streets, historic buildings, and Buda Castle.

Also consider District VI (Terézváros) if you are traveling on a budget, and District VII (Jewish Quarter) if you want to stay in a vibrant nightlife neighborhood. 

Regardless of where you stay, Budapest’s Christmas markets are easily accessible by public transportation, so you can enjoy them from various parts of the city.

During my trip to Budapest, I stayed at the 4-star Hotel Zenit Budapest Palace in district 5. The hotel is set in the heart of the city, and very well-connected to public transportation, making it a great base to explore attractions and christmas markets. You’ll be within walking distance to lots of shops and restaurants, as well as the Deak Square metro station.

Below is a map of the popular areas in Budapest for Christmas Markets. You can scroll down to view the live map.

Map of the best areas to stay in Budapest for Christmas Markets
Map of the best areas to stay in Budapest for Christmas Markets

Let’s get into the details of the recommended areas to stay in Budapest for Christmas Markets. I’ll provide you with some suggestions for the best places to stay in each area, catering to every budget. 

All hotels in Budapest have been carefully selected by me, with guest review scores of at least 8.0 or higher at the time I chose them. If you don’t like my suggestions (perhaps they don’t suit your budget or preferences), you can click the “MORE HOTEL DEALS” button where you can choose your own hotel.

5 Best areas to stay in Budapest for Christmas Markets 

1. District V Belváros – Lipótváros

District V, also known as Belváros – Lipótváros, is one of the most popular and central areas to stay in Budapest, especially if you want to be at the heart of Budapest’s Christmas festivities and explore the city’s iconic landmarks with ease.

District V is home to the famous Christmas Market at Vörösmarty Square, one of the most iconic and oldest Christmas markets in Budapest. Here, you can enjoy a wide range of holiday festivities, including traditional Hungarian food, crafts, and live music.

Only 10 mins walk from  Vörösmarty Square, you can find another prominent Christmas market in Budapest, right in front of St. Stephen’s Basilica. This market is known for its stunning Christmas tree and a wide array of food, drinks, and artisanal crafts.

This district is located along the Danube River, and many hotels offer stunning views of the river and the beautiful cityscape, which is especially enchanting when illuminated during the Christmas season.

District V is in the heart of Budapest, making it easy to explore other attractions, such as St. Stephen’s Basilica, the Hungarian Parliament, and the Chain Bridge. 

You’ll find excellent public transportation connections, making it convenient to visit other parts of the city and additional Christmas markets.

The district is known for its excellent shopping opportunities, including upscale boutiques and elegant cafes. You can indulge in shopping and dining at various local and international establishments.

During Christmas, District V is beautifully decorated with lights, ornaments, and seasonal displays, creating a festive and magical atmosphere throughout the area.

Keep in mind that this central district can be quite busy, especially during the holiday season, so it’s a good idea to book your accommodations well in advance to have the best deals.

Best places to stay in Budapest District V for Christmas Markets:

  • Luxury ($$$): InterContinental Budapest, an IHG Hotel, 5-star hotel located in the city center of Budapest, on the banks of Danube River next to Chain Bridge. It is a short distance from most sights including Váci shopping street, Central Market Hall, and Gellért Baths. Also a short walk from major christmas markets at Vörösmarty Square and St. Stephen’s Basilica. 
  • Mid-range ($$): Hotel Central Basilica, great 4-star hotel situated in a pedestrian street in downtown Budapest, within walking distance from some christmas markets such as the St Stephen’s Basilica and Elizabeth Square. Easy access to Deak Ferenc Metro Station for M1 and M2 lines. The hotel has Good breakfast, family rooms, and 24-hour front desk.
  • Budget ($): D8 Hotel, extremely popular hotel in central Budapest district 5, easy access to major sights and christmas markets. Close to Chain Bridge and St. Stephen’s Basilica. You can find  numerous metro stations nearby for exploring the city.

2. District I Castle District

District I, also known as the Castle District, is a historic and charming area to stay in Budapest, particularly during the Christmas season. It is best suited for couples and families who prefer quieter, more romantic, and peaceful compared to the bustling city center.  

 The Castle District is one of the oldest and most historic parts of Budapest, characterized by its medieval streets, Baroque architecture, and rich history. Staying here provides a unique and enchanting atmosphere during the holiday season.

On the Buda side of Budapest, you can find The Ujbuda Christmas market located close to Allee shopping center and the local Christmas market at the Fö Square in Óbuda (old Buda). These markets offer a more relaxed and less crowded experience compared to some of the larger markets in the city center.

The Castle District is located on a hill overlooking the Danube River, providing breathtaking panoramic views of the city, especially when it’s adorned with holiday lights. You can easily reach the Fisherman’s Bastion and Matthias Church for stunning vistas.

Staying in this district allows you to explore major historical landmarks, including Buda Castle, Matthias Church, and the medieval streets of Óbuda. These sites are even more captivating when they’re lit up for the holiday season.

Just take a note that District 1 is not as centrally located as District V, you’ll need to take public transportation or a leisurely walk across the Chain Bridge to reach the Christmas markets and attractions on the Pest side of the city.

Best places to stay in Budapest Castle District for Christmas Markets:

  • Luxury ($$$): Hilton Budapest, great 5-star hotel located in the UNESCO World Heritage Site, Castle district, within easy walk from Fisherman’s Bastion and Matthias Church.  It has Fabulous breakfast as well as indoor and outdoor parkings.
  • Mid-range ($$): Hotel Castle Garden, great 4-star boutique hotel has a prime location in the immediate vicinity of the UNESCO-protected Buda Castle, 5 mins of walk from Mathias church, metro, tram and bus station. It offers very good breakfast, a comfortable bed, and private parking for those who drive. 
  • Budget ($): ibis Budapest Castle Hill, great 3-star hotel, located in the Castle district, easy access to major sights in district 1 such as Buda Castle, Matthias Church and Trinity Square. It is also very close to the Deli train station and M2 metro line for visiting the city center.

3. District VI Terézváros

District VI, Terézváros, is another excellent area to consider staying in Budapest for the Christmas season. It offers more budget-friendly accommodations and easy access to major christmas markets in  District V.

You’ll also be close to numerous cultural attractions such as the St. Stephen’s Basilica, Hungarian State Opera House and the House of Terror Museum.

The district is known for its shopping streets, including Andrássy Avenue, where you’ll find high-end boutiques and shops. You can enjoy holiday shopping in the area and explore the charming side streets.

 Located at the end of Andrássy Avenue, Heroes’ Square is a significant cultural and historical site in Budapest. It features the Millennium Monument and statues of prominent Hungarian leaders.

Terézváros offers several parks and green spaces, including City Park (Városliget), which is a large park with a lake, museums, and the famous Széchenyi Thermal Bath. The park often has its own Christmas market.

Best places to stay in Budapest District VI for Christmas Markets:

  • Luxury ($$$): Hard Rock Hotel Budapest, 5-star hotel, centrally located, easy access to main attractions such as the Hungarian State Opera, House of Terror and Dohany Street Synagogue. You’ll also close to numerous christmas markets including the ones at St. Stephen’s Basilica.
  • Mid-range ($$): Radisson Blu Béke Hotel, Budapest, popular 4-star hotel in district 6 of Budapest, short distance from public transportation such as  metro, bus and tram stops at Oktogon Square and Nyugati Train Station. It is also close to Andrássy Avenue and The House of Terror museum. You can enjoy Superb breakfast and use services such as the airport shuttle.
  • Budget ($): T62 Hotel, great 3-star hotel, conveniently located in front of Nyugati Railway Station, close to  Dohany Street Synagogue, Blaha Lujza Square, New York Cafe, and Hungarian Parliament Building. It has family rooms, airport shuttle services, and Fabulous breakfast.

4. District VII Erzsébetváros

District VII, Erzsébetváros, is known for its unique and alternative atmosphere, making it an interesting choice for staying in Budapest during the Christmas season. It is best suited for those looking for a vibrant nightlife area to book their accommodation.

Erzsébetváros is home to the Gozsdu Udvar, a trendy and artistic courtyard that hosts a Christmas market during the holiday season. This market is known for its alternative and youthful vibe, featuring local crafts, live music, and a variety of food and drink options.

The district is famous for its “ruin bars,” which are eclectic and quirky bars set in abandoned buildings. While these are more known for their nightlife, they often feature special holiday events during Christmas.

Erzsébetváros is a hub for street art and alternative culture. If you’re interested in exploring this side of Budapest, you’ll find plenty of interesting art installations and independent shops in the area.

District VII was home to several synagogues, and some of them are still standing today, serving as important reminders of Budapest’s Jewish heritage.

The district offers a diverse range of dining options, from traditional Hungarian cuisine to international and vegan/vegetarian restaurants. You can experience a wide variety of culinary delights.

Best places to stay in Budapest District VII for Christmas Markets:

  • Luxury ($$$): Corinthia Budapest, 5-star hotel, set in a central location, on the edge of the Jewish quarter and the main boulevard. It has 4 onsite restaurants, Superb breakfast, and an indoor swimming pool. 
  • Mid-range ($$): Up Hotel Budapest, popular 4-star accommodation located in district 7, within a short distance from the House of Terror, offering a 24-hour front desk, airport transfers, and an ATM. Easy access to Blaha Lujza Square, and Keleti Pályaudvar Metro Station.
  • Budget ($): Benczur Hotel, 3-star hotel, located in a quiet area in the embassy quarter of Budapest, within walking distance from several major sights such as the Budapest Zoo, City Park, and the Széchenyi thermal bath. It is also  close to the city center and metro station.

5. District VIII (Palace District)

District VIII, also known as the Palace District (Palotanegyed), offers a more local and less touristy experience in Budapest. While it may not have as many Christmas markets as some other districts, it can be a charming and peaceful place to stay during the holiday season. 

The Palace District is famous for its well-preserved 19th-century architecture, including beautiful Art Nouveau and Neo-Renaissance buildings. Many of these structures have been renovated in recent years, giving the district a unique and charming atmosphere.

Ferenc Körút is one of the major boulevards running through the district. It’s lined with beautiful buildings, shops, and cafes, making it a pleasant area for strolling.

Other attractions in the area are The Hungarian National Museum, Corvinus University of Budapest, Corvin Film Palace, Hungarian University of Fine Arts, Almássy Palace,and  Gráf Festetics Palace.

The district is well-connected to the rest of Budapest through public transportation, including buses, trams, and the metro, so you can easily get to the Christmas market without a car.

Best places to stay in Budapest Palace District for Christmas Markets:

  • Luxury ($$$): Párisi Udvar Hotel Budapest, part of Hyatt, 5-star accommodation located within walking distance from most things. Close to trains, and the Danube, shops and restaurants. It offers Exceptional breakfast and paid airport shuttle services.
  • Mid-range ($$): Danubius Hotel Astoria City Center, 4-star hotel located close to  Astoria metro station, featuring a trendy Astoria Café & Restaurant serving Hungarian dishes.
  • Budget ($): The Three Corners Hotel Art Superior, popular 3-star hotel located in pedestrian street, close to the Kalvin Square metro, the National Museum, Váci utca shopping street, Great Market Hall, and Kálvin Tér station (metro M3 and M4 lines).

In conclusion, District 5 Belváros-Lipótváros, District 1 Castle District, District 6 Terézváros, District 7 Erzsébetváros, and Palace District are the best places to stay in Budapest for Christmas markets. These are central areas that offer plenty of hotels and easy access to markets on foot and by public transit.  

If you are traveling to Budapest for the first time, you can continue reading this article: Safest areas to stay in Budapest for first-time visitors.

I hope you enjoyed my article and find it informative and helpful. If you have any questions or would like to share your thoughts, please don’t hesitate to leave a comment below. Your feedback is invaluable and helps me continue to create more quality travel guides.

About Author: Ocean Cameron

I'm Ocean, founder and main editor of travelhotelexpert.com. I’m a passionate traveler who specializes in uncovering the best hotels and locations in every city, especially for first-timers, all without the need for a car.

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