Not the most convenient hotel. But if you walk to the front of the train station you have two choices. Take the 4/6 Tram one stop to the Oktogon which gives you all of Andrassy ut, including Liszt Fernec ter (I dont much care for the area, a bit trashy and touristy) or go the opposite direction one stop, cross the street and get on the 2 Tram for the most beautiful ride in Budapest, and in Europe after sunset. Get off at the stop just after the Chain Bridge and dine outside at one of the Corso restaurants with a stunning view across the Danube. Yes, touristy, but worth it.
This one is near your restaurant and I think on 15 years of visiting Budapest I never had a better Hungarian meal than what I have had here. Dripping with atmosphere too and few if any tourists http://www.kiskakukk.hu
Or like I said in the post I accidentally deleted, I know a place near with belly dancers if that is your definition of atmosphere.