This hotel is in the up-and-coming Palace District, a neighborhood full of stunning former residences built at the end of the 19th century for Austro-Hungarian aristocrats. It was not so long ago that the neighborhood had declined so much that tourists were advised to stay away. Now it's become one of the city's hippest areas, full of contemporary art galleries, open-air bars and restaurants, and an increasing number of meticulously refurbished buildings. Hotel Palazzo Zichy opened in 2009 in an elegant rococo house from 1899 that had been partitioned into tiny apartments during Communism. Now the historically protected building has a contemporary minimalist interior that emphasizes its most interesting architectural elements. The reception area is in the glass-topped courtyard, and there's an adjacent lounge and a small bar area (open only at night, but with self-service coffee and tea during the day). Because it's an old building, rooms differ in size, shape, and layout, though the furnishings tend to be similar. The rooms, which either overlook the square, the atrium, or the side street, are crisply modern, with dark color schemes and floral patterns. Ten of the rooms have tubs, while the rest have walk-in "rainforest" showers. Breakfast is served downstairs in a room with a clear glass floor above a cactus garden. There's a small fitness room and sauna available. This comfortable hotel is a stylish choice for those who want to be based in an emerging neighborhood, where there's lots to discover.