Budapest's best boutique hotel is housed in a Bauhaus-style structure built in 1937 and once used as an orphanage. In the bright lofty lobby the hip young staff receives you at a funky front desk. Rooms are large but the only nod to actual design is in some of the lighting. That said, the terra-cotta, blue, and cream color-schemes are cheery, as is the light-blue-and-cream tilework in the bathrooms. Many rooms have lovely balconies overlooking the trees and mansions of the Andrássy út.