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@veLLo
I used to live there, so I don't know about hotels, I only know about a student residence that transform to a youth hostel during the summer, BUT my favorite restaurant was the "Szent Jupat" in Moskva Ter (Moscow Square)
Here's the webpage:
http://www.stjupat.hu/
But the picture you can see is where not to go, as it is the ground/first floor room... The good place is in the basement, as it used to be a trucker restaurant, openned 24/7, super greasy smelly and massive plates, mega generous serving, great ambiance... I remember going there after partys very early in the morning, when you are starving... amazing!
Otherwise you HAVE to go to the baths, the szechenyi being the most famous, and possibly the nicest...
Because of being such a good place it is full of tourists, but it does not really matter, and you can avoid that by going very early in the morning (I think it opens at 5 or 6...) Winter is great to go there, the steam coming out of the water creates a great ambiance.
They are plenty of other baths, I did not go to all of them, I remember one just next to Danube (name was Luckacs or Rudas... I don't remember which is which, one of them is gay maybe, as these smaller and maybe more traditional baths are not mixt every day, or sometimes never, monday women, tuesday men, etc...) Anyway I think it's the Luckacs... it's on the west side of the river, few tramway stops at the north of the liberty bridge I think. Here's a picture google found:
But there is also in the same place another part of the building which still has the turkish dome, which is beautiful...
So I recommend you go out and get shitfaced, after your party you go to one of these bath, the first one I mentionned is better as it's bigger, and is located in the woods at the end of Andrassy avenue, with direct access from the number one tube line (yellow). You repair your hangover lying in 34 degrees bath for an hour and then you will really be starving, so you go to their fabulous patisseries, the poshest one being the Gerbaud, but our favorite was the Muvesz, quieter, less tourists, not far from the opera.
Once there you eat all the cakes they have and your life will feel like paradise! Really!
Ah, I enjoyed writing this, I had such good times over there, Budapest is such a beautiful city...
Cycling there is really easy, due to the radio-concentric layout of the city, you never really get lost, it's not as rational as a city like New York, the streets are not necessaraly straigh, but it's not confusing like London for example...
Enjoy your time there, good choice to go when it's start to be colder, everything looks nicer when it's cold there... and summer is way too hot... Too early for snow though I suppose...
Loic