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Great city, went last year and loved it.
I would wholeheartedly agree with all of the above, we went to the Gellert Baths, which is the grandest of the baths and it was fantastic.
Also when I went took this article below from the Guardian for some decent alternative nightspots:
Szimpla Kert
Considered the granddaddy of Budapest's kerts - disused spaces commandeered as "guerrilla" bars - Szimpla Kert moved last year to the spacious courtyard of an abandoned building in the heart of Pest's tumbledown District VII, and has been filled with scrapheap furniture and transformed into an atmospheric alternative pub. Szimpla has grown into one of the city's great nightlife institutions and is essential drinking, even on the shortest stay in Budapest. A wireless hotspot, plenty of space, unobtrusive music and an alternative shop around the back draw a mixed crowd of locals and foreigners. Best of all, thanks to a pre-fab roof, it is open all year round.
Kazinczy utca 1, szimpla.hu.
Klassz
Recently opened, this is a slightly up-class eating option sitting on Budapest's answer to the Champs-Elysées. While the place has been open for business since January, it still doesn't have a sign outside or, from what we understand, even a phone number. The space is pretty unusual, with a big smoking area up front, kitsch flowery wallpaper, and a portal into the kitchen hovering above and behind the main bar and dining area. It features hybrid Hungarian/international cuisine, and caters to fashion-conscious professional types who are still a little budget conscious. Do try their two dishes featuring foam (yes, foam) - one a "foaming" duck liver soup (Ft890, £2.40) with a gratinée of mushrooms and cheese, and another a main of duck liver with tokaj foam and apple compote, which goes for around twice the price of the soup.
Andrássy út 41.
Szóda Café
Szóda belongs to the rare breed of bar that is cool without trying too hard. The "retro-futuristic" logo just seems so now, the soda bottle gimmick is kept at arm's length, the oversized cartoon strips are plastered discretely on the ceiling, and the seating and lighting is suitably low-key. The crowd is also too cool to pin down, or even worry too much about. Everyone seems to be doing their own thing: chatting, chilling and fiddling with laptops (free wifi!) by day, playing csocsó and downing shots in the evenings, or dancing the night away in the cellar below.
Wesselényi utca 18, szoda.com.
Corvinteto
Corvinteto, which means the "Corvin roof", sits on the top of the communist-era department store formerly called the "Corvin". Get off the number 4 or 6 tram at Blaha Lujza tér and look for a street-level sign reading "Kaiser". Around the corner, a freight elevator makes runs to the top manned by a (usually scruffy looking) lift operator who dishes out shots of Unicum, Hungary's national bitters, on your way up. Once on the top floor, the corridors are lined with artwork and posters curving on to a bar area lined with sofas. Stairs lead up to the rooftop bar, habitually buzzing over the summer and doused in dim, red light against the illuminated grandeur of Budapest's skyline.
Blaha Lujza tér 1-2.
Haxen Király Sörház Étterem
This pine-panelled eatery deep in the woods of the seventh district has long been one of our faves, with really, really tasty sausage-by-the-metre and other Bavarian and Hungo classics. But the undisputed highlight are its human-head-sized hunks of crunchy, coal-roasted csülök (pork knuckle). You get a half-knuckle (Ft54 per 100 grams) that has been slowly roasted next to - as opposed to over - the coals until it is a combination of falling-off-the-bone tender meat and tooth-crackingly crunchy skin backed by a sweet layer of fat. Not for the faint of heart, or stomach. Don't miss the delectable túró (cheese) and fruit pudding.
Only had time to take in Szimpla Kert and Corvinento but would definitely recommend both, the latter however maybe dependant on going when it's fairly warm.
I like the sound of the guerilla bars...sounds a bit like former east-Berlin.