If the concept of twin cities sounds somewhat American — Minneapolis and St Paul, Dallas and Fort Worth— spare a thought for the original siblings: Buda and Pest, situated on opposite banks of the Danube. United as one in 1873 but no stranger to division in the 20th century, Budapest may fairly say its best days are ahead of it. With a youthful population thanks to its universities and a rich past as a trading hub at the crossroads of Europe, the Hungarian capital can also offer astonishing value for money. Not in the sense of somewhere cheap and gritty after the end of the Soviet era, but somewhere with an abundance of grandeur that can be enjoyed on a reasonable budget.
Take this week’s deal at the Anantara New York Palace. Built in 1894 as the headquarters of the New York Life Insurance Company, it was restyled as a hotel in 2006 and is now run by the luxury brand Anantara. And yet three nights there this month, including flights, comes in at less than just one night at the Ritz or any similarly celebrated hotel in London, or indeed New York.
Not only are its guest rooms said to be the largest in Budapest, but it is also home to the New York Café, which is possibly the most beautiful belle epoque café in the world and certainly one of the most Instagrammed. Yes, bloggers may queue for up to an hour for a cappuccino (mains from £22; newyorkcafe.hu), but hotel guests receive privileged access to its grand Italianate interior. That the Cold War-era government once used the building as a sports store suggests that communism was never the best fit for this Habsburg city, although it is worth learning of Budapest’s darker past as well as its opulence.
A bedroom at the Anantara New York Palace
While the bronze maiden atop the Victory Monument on Gellert Hill carries a palm leaf to symbolise peace and liberation by the Red Army after the Second World War, the appropriately named House of Terror museum tells a different tale. It’s a chilling story of how the communist government employed the same brutality as the Nazis — in the very same building on Andrassy Avenue (£9; terrorhaza.hu).
No good came from this time, but enterprising young Hungarians have at least revived some of the run-down areas that were the city’s dubious postwar legacy. The so-called ruin bars have taken over abandoned buildings in the former Jewish Quarter and created an eclectic collection of venues; often with live music. Szimpla Kert on Kazinczy Street was among the first, where beers cost from £3.50 and bottles of local champagne, £21 (szimpla.hu).
The belle epoque café in the Anantara New York Palace
ALAMY
Elsewhere, Budapest has legitimately reclaimed its Habsburg grandeur. Celebrity chefs are making the most of a lively culinary scene: Wolfgang Puck has even opened an outpost of Spago in the Mathild Palace Hotel (mains from £25; spagobudapest.com), but for a genuine homegrown star, Szilard Toth is the name to drop. Salt has earned Toth a Michelin star and, though hardly cheap, the 14-course, £160 tasting menu represents good value when compared with equivalent restaurants in London and Paris (saltbudapest.com).
Sometimes though, only simple fare will do, and a traditional Hungarian goulash is the best riposte to the intricacies of fine dining. Try Gundel, another belle epoque gem, which has occupied the same site in the City Park for 130 years. A hearty beef goulash with noodles is just £9 (gundel.hu).
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What you get for £820pp
• Return Gatwick flights with BA, including pre-booked seats
• Two cabin bags and up to 23kg checked baggage
• Three nights’ B&B at the five-star Anantara New York Palace, departing on November 21 (britishairways.com)
More great places to stay in Budapest
The £550 holiday
Kozmo is tucked away in a quiet neighbourhood
SMALL LUXURY HOTELS OF THE WORLD
A member of the Small Luxury Hotels of the World collection, Kozmo strikes an unusual look, with its red-brick façade standing out among the painted stucco more typical of its surroundings. It’s hardly small, but it’s certainly luxurious, with a modern spa matching the contemporary style of the interior. The location is the best of both worlds — tucked away in a quiet neighbourhood, about 30 minutes’ walk from the ruin bars and the banks of the Danube.
Details Three nights’ room only from £544pp, including flights, departing on November 21 (luxuryescapes.com)
• The best hotels in Budapest
The £1,000 holiday
The Aria is a luxurious 49-room hotel
DGY
If music-themed hotels just make you think of expensive burgers and guitars in glass cases, the Aria will be a pleasant surprise. This luxurious 49-room beauty is spread over four wings, each with a theme of jazz, classical, opera or contemporary music — so if you have a preference, make it clear when booking. There is a rooftop bar and terrace with views over the Danube and Kirker Holidays includes a private walking tour with a local guide, and the services of a concierge who can help with bookings for either concerts or restaurants.
Details Three nights’ B&B from £998pp, including flights and private transfers, departing on November 21 (kirkerholidays.com)
