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Where to stay in Budapest

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DH and I will be going to Budapest for 7 nights in mid to late September. I haven't booked anything yet because I'm not sure where the best area to stay is. I've priced out flights and hotels and, since we will be staying in only Budapest, it makes more sense to book a flight and hotel package on a site like Expedia. It's cheaper to book them together, and, easier. I really like the look and price of the Boscolo Residence http://budapest.boscolohotels.com/residence/ at Osvát utca 2-8, Budapest. I believe the area is called Erzsebetvaros. I have no idea if this would be a good area to stay in as far as being convenient to sites, restaurants, and places a tourist would generally want to go. If not, what area would you recommend?

I was in Budapest in 1974 with my parents for one weekend. We took a side trip from Vienna, where my sister and her husband were living. The only things I remember are the sidewalk crumbling beneath my feet, going to some fancy dinner, and my mother buying Herrend porcelain. I am sure it is a much different city now. Any help will be greatly appreciated. Thanks.

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