Where to stay in Melbourne

It seems like every time I go to Melbourne (which is quite often), there are cool new hotels opening.

Opulent new five star skyscrapers in the city centre, renovated heritage buildings becoming boutique accommodation, or cool apartments in local neighbourhoods – there’s always something new to try.

The same can be said about the different neighbourhoods in Melbourne too, because although there are a few obvious areas to stay in Melbourne, there are plenty of other spots to experience as well.

The city centre (and surrounding districts like Southbank or Docklands) is the obvious choice for where to stay in Melbourne for many travellers, with plenty to do and great restaurants and transport.

But don’t forget that Melbourne is famous for its quirky suburbs, so you might want to base yourself in one of them if you’re going to be here a bit longer.

Regardless of where you choose, you’re going to find some world-class hotels and some really funky artistic options too.

The public transport system is really good, so any of the places to stay in Melbourne that I’m going to recommend are well-connected to the main centres.

But you’ll definitely find different vibes in these various neighbourhoods, which is something you may want to consider, particularly if you’re going to be here for more than a night or two.

• City centre: The best area to stay in Melbourne for first-time visitors, with easy access to attractions and transport.
• Southbank: Another good area for first-time visitors, although there’s less variety and more high-end accommodation.
• Docklands: With lots of modern apartments, but with easy access to the city centre, this can be good for longer stays, groups, or business trips.
• Fitzroy (and Collingwood): These cool inner-city suburbs put you right amongst fantastic bars, restaurants, and street art.
• South Yarra: A stylish part of the city that has more upmarket shops and cafes, with some cool boutique hotels.
• St Kilda: Right on the beach, it’s about 20 minutes from the city centre but has great dining, fun live music, and a good variety of backpacker options.
• Brunswick: An excellent choice to feel like a local in a residential neighbourhood, especially one with a vibrant multicultural atmosphere.

Before I run you through the details of where to stay in Melbourne, have a look at this map so you can see how they all fit together.

The central areas will be your best option if you want a typical tourist experience, but the further out you go, the more you’ll find interesting neighbourhoods with more of a local feel.

So, with all of that said, let’s have a look in detail at my top tips for the best accommodation in Melbourne.

City centre

For first-time visitors, I think there’s no better area to stay in Melbourne than the city centre. Unlike some of Australia’s other state capitals, Melbourne’s CBD is about much more than business, with lots of residential and cultural zones here too.

Staying in Melbourne’s city centre gives you the best transport connections to a variety of suburbs (including on the world’s largest tram network), which are well worth exploring to discovering why Melbourne is rated among the world’s most liveable cities.

But you’ll spend plenty of time seeing the sights in Melbourne’s city centre, seeing sights like Parliament House, St Patrick’s Cathedral, Flagstaff Gardens, Queen Victoria Market, and Federation Square.

Some of the best hotels in Melbourne are here in the CBD, but there’s also a really interesting range of accommodation and, regardless of your budget and taste, you’ll likely find something here that suits your style.

• Space Hotel: A very cool hotel with a more social vibe, plus a spacious kitchen and great view from the rooftop.
• Flinders Backpackers: The hostel has a cute homely atmosphere with helpful staff and a colourful design.

• Best Western Queen Victoria Market Hotel: Although the rooms are fairly basic, it’s modern and offers a good place to crash for a night or two.
• Hotel Collins: The large comfortable rooms and convenient location make this great value for money.

• W Melbourne: A relatively new hotel that has funky rooms and a young vibe, with a very cool indoor pool area.
• Le Meridien: Set in an old theatre with an art deco facade, this new hotel blends aspects of Melbourne’s theatre district with the French style of the accommodation brand.

• Next Hotel Melbourne: Without being too flashy, everything here has been well considered, with an emphasis on comfort.
• Park Hyatt: Although it’s still fresh and new, there’s a more traditional feel to the decor in a quiet location right on the edge of the city centre.

Southbank

The Yarra River courses through the heart of Melbourne with the city centre on one side and Southbank on the other.

Although it’s just metres away from central Melbourne, Southbank feels really different. It’s a modern and ritzy part of the city, with high-end accommodation that focuses on the area’s world-class entertainment and dining district, particularly Crown Casino.

But at some times of the day, it’s also one of the most relaxing parts of the city. While the northern side of the river is primarily covered with train lines and frequented by office workers, over here you’re right next to the Yarra and an early morning stroll from your accomodation brings the splashing of the oars as rowboats cruise past while the city begin to wake.

This is a great part of Melbourne to stay in if your focus is going to be on arts and culture, with some of the city’s best restaurants just a short stroll from the Arts Centre and National Gallery of Victoria. But there’s also easy access to other neighbourhoods, so you might want to choose to stay in Southbank just for the beautiful hotels.

• Imagine on Southbank: Another option that is not cheap but is one of Southbank’s more affordable hotels and is actually quite cool.
• Holiday Inn Express Melbourne Southbank: Clean, comfortable, and modern, you’ll also get a free breakfast here.

• Bright Urban Oasis: If you just need one bedroom, this cute little apartment is good for longer stays.
• Exclusive Stays – SouthbankONE: Great views across the area and three bedrooms sleep a maximum of eight guests.

• Ink Hotel Melbourne Southbank: Lots of small touches make this a funky hotel that’s quite good value.
• Adelphi Hotel: Although it’s just across the river from Southbank, it’s close enough to the neighbourhood and is so cool it’s worth considering.

• The Langham: The classic elegance you’ve come to expect is on full display at this beautiful riverside location.
• Quay West Suites: A great option if you want a five-star accommodation but with suites that offer self-contained kitchenette facilities.

Docklands

If you haven’t been to Melbourne for a decade or two, you probably wouldn’t recognise Docklands.

The neighbourhood has seen rapid development over the last two decades, transforming from a disregarded barren collection of ship docks into a jungle of skyscrapers full of modern apartments.

For travellers, that means it’s an area full of larger serviced accommodations with facilities like full kitchens.

Docklands is one of the best places to stay in Melbourne for families or groups. You still have decent public transport access to the city centre and other neighbourhoods, yet it can feel like its own little world.

Despite its modern feel, Docklands is much quieter than the neighbouring CBD and Southbank. But there are things to do here like Docklands Park for the little ones, or it’s not far to some of the city’s main attractions.

• Peppers Docklands: The beds are comfortable, the location is convenient with public transport, and there’s even a small pool.
• Travelodge Hotel Melbourne Docklands: You’ll see the modern design as soon as you enter the building and, while the rooms have a fairly standard interior, they’re really clean and comfortable.

• Melbourne Holiday Apartments Flinders Wharf: Located at the banks of Yarra River, this fully furnished apartment has access to an indoor pool and offers plenty of other amenities.
• Nesuto Docklands: Clean and modern with ample space, this apartment is very close to shops and restaurants.

• Docklands Private Collection – Digital Harbour: The bright stylish room offers unmatched city and river views from the balcony, with easy tram access right out the front door.
• Waterfront Melbourne Apartments: There’s history here, with the property being a hotel since the 1800s, but don’t worry, the interior’s had a modern makeover and the rooftop bar is fabulous.

• Winston Apartments Docklands: These modern and well-equipped apartments are a perfect base in Docklands, and also have an indoor pool and amazing view.
• Spectacular Victoria Harbour Apartment Docklands: Or for a bit more space, this private three-bedroom apartment has lots of light with luxurious fittings.

Fitzroy

Outside of the central neighbourhoods I’ve already mentioned are some fantastic inner-city suburbs that offer the cultural eccentricity that Melbourne is famous for.

It may not have as many big landmarks as Sydney, but the communities are a highlight here, and I think Fitzroy (and neighbouring Collingwood) is one of the best places to stay in Melbourne to see this for yourself.

Skyscrapers are replaced by double-wide streets with tram tracks running through. These roads are flanked by two-story shophouses, the bottom floor a restaurant, cafe or thrift shop, and the top floor of an early 20th century apartment.

The facades of these buildings have changed little over the last 100 years. Yet what lies within them explores the neighbourhood’s artistic, trendy and hipster side. 

Foodies will love staying in Fitzroy – but there’s more here than just restaurants. There are cool cafes, street art, and a friendly youthful nightlife that combines students and young professionals.

Fitzroy is really close to the city centre and there’s great transport, but because it’s residential, you’ll also find more apartments and houses here, so it can be good for groups or longer stays.

• Royal Derby Hotel: Good for short stays, with clean and comfortable accommodation in a funky neighbourhood.

• Melbourne Metropole Central: The rooms are relatively simple but they’ve got everything you need and it’s a great location.
• Veriu Collingwood: A lovely modern hotel that even has an outdoor pool and often offers affordable rates during the week.

• Comfort Apartments Royal Gardens: There’s a peaceful garden setting with an outdoor pool and barbecue area, plus easy access to the city centre.
• District Apartments Fitzroy: Clean and tidy, the apartments are spacious with modern interiors and a nice view across the neighbourhood.

• Spacious Converted Home: Housed in an old heritage building with modern design, a very homey atmosphere, ideal location, and great hosts.
• The Eversley: A home away from home, there are lovely soft tones in the modern design, with a gorgeous garden to hang out in.

South Yarra

If Fitzroy is young, hip and colourful, then South Yarra is simply glam. Alongside Toorak, the stylish suburb has long been the stomping ground of the city’s upper class.

Although it’s a ritual to poke fun at these uptowners, the reality is that South Yarra is a great place to stay in Melbourne. Once you get your bearing, it’s really easy to get around, with South Yarra station just a couple of stops from the heart of the city.

Those who have a shopping itch to scratch will feel at home in South Yarra. Rows of boutique shops dot the map, including Chapel Street. This mix of shops, bars and late-night clubs remains one of the most happening nightlife streets in Melbourne.

You’ll find a couple of really stylish boutique hotels in Prahran which I think justify staying here just in themselves. Or you could also look into neighbouring Richmond that is a bit of a blend between South Yarra and Fitzroy, with nightlife and good shopping.

• Apartments of South Yarra: Clean and comfortable rooms offer a nice escape from the bustle out on the surrounding streets.
• Melbourne South Yarra Central Apartment Hotel: Some cool art on the walls give the accommodation a bit of colour, along with comfy beds and a great location.

• Vogue: With a great location and facilities, there’s a nice city view and access to an indoor pool.
• Saint George Accommodation: Private and quiet, this studio apartment has everything you’ll need in this convenient location close to public transportation.

• The Cullen: With beautiful Australian art decorating the hotel, and super comfortable rooms, this is another fantastic option in Prahran.
• Davis Avenue Apartments: The apartments are bright, clean, and quiet, with a touch of nature in this charming tree-lined street.

• Exclusive Stays – Seven Yarra: If you’re looking for something more modern, this two-bedroom apartment has incredible views from its elevated position.

St Kilda

Trendy suburbs with cool nightlife and good dining don’t necessarily have to be expensive. The coastal suburb of St Kilda has all of that – but it is also known for its great selection of budget accommodation, especially for backpackers.

St Kilda lies south of South Yarra, bordered by Albert Park and the waters of Port Phillip Bay. Its beachfront is fun to visit but, be warned, this isn’t one of those Aussie beaches you were told about in the commercials!

The beach, walking tracks and bounty of green space make St Kilda wonderful for being outdoors. As you explore, you’ll find the iconic Luna Park theme park and spot several of Melbourne’s best live music venues.

It only takes about 20 minutes by car from St Kilda to the city centre (and only slightly longer by public transport) so it’s easy enough to reach the main attractions. But if you’re planning to do a lot of sightseeing, you may get a little frustrated about the distance after a couple of days

• Summer House Melbourne Backpackers: Clean and spacious with lots of activities to mingle with other travellers.
• Nomads St Kilda – Base: There’s a friendly atmosphere with lots of different spaces to hang, from the kitchen to the common rooms.

• Adara St Kilda: Spacious and clean, with a large bed, loads of amenities, and great value for money.
• Sixty Two On Grey Serviced Apartments: In a historical building from the 1860s, the rooms are relatively simple but spacious and within easy reach of the main sights.

• Crest on Park: Along with lovely modern rooms (some with kitchenettes), guests also get free access to St Kilda Sea Baths.

• The Hamptons Apartments: As the name suggests, there’s an elegant beachside theme to the interior design of these large modern apartments.
• Kimberley Gardens Hotel: Although it’s set further back from the beach than other options, the apartments and villas are spacious and modern.

Brunswick

And finally I wanted to recommend Brunswick. It’s not normally a top suggestion for where to stay in Melbourne, but it’s a fantastic option for something a lot more local.

North of the CBD, Brunswick is a community of communities. Over the years it’s been where immigrants have settled from Italy, Greece, and the Middle East, so the food scene here is diverse, with a wonderful mix of restaurants, cafes and bakeries.

Along the neighbourhood’s main thoroughfare, Sydney Road, you’ll be in the typical Melbourne landscape of two-story townhouses guiding you down the street. But with every side street is a chance to uncover Brunswick’s vibrant culture.

There are galleries, vintage stores, bookshops going against the grain and craft beer served at half-condemned hotels. Brunswick harbours a wonderful, social atmosphere.

From a friendly hostel to some incredible five-star accommodations in the renovated Pentridge Prison, there are lots of places to stay here – but just getting an apartment or a house and soaking up the local suburb may be what you’re after.

Either way, there’s good transport into the city centre and your money will go a little bit further here than some of the central neighbourhoods.

• Quest Moonee Valley: Close to shops and dining, there are standard apartments in different sizes, with friendly and helpful staff.
• Orangerie: A beautiful two-bedroom apartments in an old factory that’s been converted with a contemporary and stylish design.

• Stylish 3 bedroom house: A cute renovated cottage that’s really comfortable and also conveniently close to bars and cafes.

• The Interlude: Another five-star hotel within the old Pentridge Prison, the stunning redesign and cosy rooms are pure luxury.
• Ruckers Hill Northcote Penthouse: A stylish one-bedroom apartment with beautiful views of the neighbourhood.