lodging in Budapest

Since you only have two nights being in the right location will make a world of difference. I really want to urge you to get a map of Budapest or go to Google Earth or Google Maps and find Andrassy ut (street). Then on Andrassy ut find an intersection / metro stop called the Oktogon. Finally draw a line from the Oktogon down the center of Andrassy ut and beyond until you reach the river. Now what every you get try and get it within a block or two above and three blocks below that line. The closer to the river the better as well. There are some choices in that zone that visitors to this forum have found that they have been very happy with. One in particular was Wombats City Hostel on Kiraly utca. For a little more than your budget you can always stay at the K&K Opera which is generally speaking well situated and a nice place. I recommend it a lot and no one has ever told me that they thought they had made a mistake by staying there. You also have the choices of apartments in that zone. One good management company is Budapest Apartments Direct http://www.budapestapartmentsdirect.com/ I know they are good because they manage my apartment in Budapest. Expect to pay 45euro and up per night for a decent well situated apartment. Let me know if I can help with your planning.

And here is another reply with some ideas of how to spend two days: https://www.ricksteves.com/graffiti/helpline/index.cfm/rurl/topic/104992/budapest.html

My wife and I have stayed several times at the art'otel which is on the Buda side of the river. It was within your budget range as of summer of 2010. It's not the Pest side as James has recommended, but the Pest side is in easy walking distance from the art'otel. In 10 minutes after leaving the hotel you'll be across the river and walking on Andrassy ut.

On about our 5th trip to Budapest we stayed at thee Art'otel. I'm not going to say it was the best accommodation experience I ever had I Budapest but I will say that the view of the Parliament building was spectacular in the evenings. It's a part of town that deserves to be explored. My favorite antique shop is near by and the hotel is just down the street from a notorious cold war prison (still in operation). It's also near the jumping off point to Obuda and Szentendre and there are some evening cruise boats that dock right out front. There are a lot of good choices in Budapest and I've only stayed in a handful so saying one is better than another is beyond my first hand experience so I stick to recommending neighborhoods that I think are interesting, entertaining and convenient. But sure, the Art'otel is a viable contender. First decide what you want to see in Budapest and then go to Google Maps and use which ever hotel you are interested in as one point and choose those attractions as the other points and have Google maps tell you how long the walks are. Its pretty accurate. It will help you weigh all the factors. Miserable city where there are just too many good hotels and too many great restaurants. What's a person to do?