Hungary’s capital has always had a few things going for it: classical music; Art Nouveau architecture; a wine scene just out of town. Design and luxury, not so much—until this year. Opening in June, the 67-room Rácz Hotel & Thermal Spa (raczhotel.com; doubles from $336), near the city’s main shopping street, has dramatic chandeliers and views of the Royal Palace, but the real draw is the 16th-century, unesco-designated hammam spa with domed ceilings. Up next this summer: the 102-room Buddha-Bar Hotel Budapest Klotild Palace (buddhabarhotelbudapest.com), the second hotel project by the renowned Parisian hospitality group, with an Asian themed bar and a restaurant with—yes!—an enormous Buddha as its centerpiece. Further evidence of Budapest’s new Golden Era of Design? WAMP (wamp.hu), a burgeoning monthly fair showcasing everything from fashion to dishware by local young artists.