Where to stay in Melbourne depends on the trip you’re planning. Stay in the CBD or Southbank for a first visit, Fitzroy, Collingwood or Carlton for cafes, bars and live music, St Kilda for the beach, South Yarra and Prahran for shopping and style, Richmond for the Australian Open and the MCG, and Docklands for space and the waterfront. Trams are free in the city centre and cheap beyond it, so none of these neighbourhoods leaves you stranded.
Max has been to Melbourne dozens of times, often for work when he lived in Australia and often staying with friends, so he has stayed all over the city rather than in one hotel. That’s why this guide picks the best area to stay in Melbourne by the kind of trip you want, then lists hotels we’ve checked on Booking.com at every budget. We’re big fans of YHA hostels too, and you’ll find one here.
Key Takeaways
- First visit? Stay in the CBD. It sits inside the free tram zone, close to Flinders Street Station, the laneways and the main sights.
- Want cafes and nightlife? Fitzroy and Collingwood have the best bars, live music and street art, a short tram ride north of the city.
- Beach or style? St Kilda has the sand, sunsets and Luna Park; South Yarra and Prahran have Chapel Street and the Prahran Market.
- Here for the tennis or the footy? Richmond and the east end of the CBD are a walk from Melbourne Park and the MCG.
Where to Stay in Melbourne at a Glance
| Best overall | The CBD |
| Best for a first visit | The CBD or Southbank |
| Best for nightlife | Fitzroy and Collingwood |
| Best for families | Southbank, Docklands or St Kilda |
| Best for the beach | St Kilda |
| Best for the Australian Open | Richmond or the east end of the CBD |
| Best on a budget | A CBD or St Kilda hostel |
Melbourne is a city of neighbourhoods, and each of the best areas to stay in Melbourne has its own character. This table compares nine of them: who each one suits, what it’s like, how far it is from the centre and what you’ll pay.
| Area | Best for | Vibe | From the CBD | Price |
|---|---|---|---|---|
| CBD | First-timers, short trips | Laneways, shopping, trams | In the centre | $$–$$$$ |
| Southbank | Views, the arts, families | Riverside towers, galleries | Across the river | $$$–$$$$ |
| Fitzroy | Cafes, bars, vintage shops | Creative, bohemian | 2 km (1.2 miles) north | $–$$ |
| Carlton | Italian food, museums, gardens | Leafy, relaxed | 1.5 km (0.9 miles) north | $$–$$$ |
| Collingwood | Live music, street art | Gritty, cool | 2.5 km (1.6 miles) north-east | $$–$$$ |
| Richmond | The tennis, the footy | Pubs, Vietnamese food | 3 km (1.9 miles) east | $$–$$$ |
| South Yarra and Prahran | Shopping, style, the Grand Prix | Upmarket, lively | 4 km (2.5 miles) south-east | $$–$$$ |
| St Kilda | The beach, sunsets | Laid-back, seaside | 6 km (3.7 miles) south | $–$$$ |
| Docklands | Families, stadium events | Modern waterfront | 1.5 km (0.9 miles) west | $$–$$$$ |
If you only have a weekend, the CBD or Southbank will save you the most time. With four days or more, the inner suburbs give you a better feel for how Melbourne actually lives.
The Best Areas to Stay in Melbourne
These are the best neighbourhoods in Melbourne for visitors, with what to see in each and two or three hotels per area at different budgets. Every hotel was available on Booking.com when we checked in October 2026, and the ratings quoted are Booking.com guest scores out of 10.
The CBD (Central Business District)
The CBD is the best place to stay in Melbourne for a first visit. The grid of streets between Flinders Street and the Queen Victoria Market holds the city’s famous laneways and arcades, rooftop bars, Chinatown, the big department stores and most of the theatres, and the whole district sits inside the free tram zone. It’s the most expensive area for hotels, but you’ll spend less time and money getting around.
Start at Flinders Street Station, one of Melbourne’s best-known landmarks, and Federation Square opposite. From there, walk the Golden Mile heritage trail through The Block Arcade, browse the stalls at the Queen Victoria Market, which has more than 600 traders, and look for the street art in Hosier Lane and the lanes around it.
The east end of the CBD, around Spring Street and Collins Street, is quieter and closer to the parks, Melbourne Park and the MCG. The west end, near Southern Cross Station, is handier for the SkyBus from the airport and for Docklands.
| Hotel | Style | Best for |
|---|---|---|
| Sofitel Melbourne on Collins | Luxury · $$$$ | Rooms high up in Collins Place with views across the city and the bay, at the quiet east end of Collins Street. Rated 8.9. |
| Alto Hotel on Bourke | Mid-range · $$$ | A boutique hotel known for its eco-friendly practices, with EV charging and a short walk to Southern Cross Station. Rated 7.2. |
| YHA Melbourne Central | Budget · $ | An adults-only hostel on Flinders Street with dorms, private rooms, a rooftop terrace and a bar. Rated 7.8. |
We’re big fans of YHA hostels across Australia, and the Melbourne Central YHA is the one to book now that the Melbourne Metro YHA in North Melbourne has closed permanently.
Southbank
Right across the Yarra River from Flinders Street, Southbank is the best area to stay in Melbourne if you want river views and the arts on your doorstep. The National Gallery of Victoria, the Arts Centre and the Australian Centre for Contemporary Art, which is free, are all here, along with the Southgate restaurants and the casino and entertainment complex at Crown.
For some of the best views of the city, ride up to the Melbourne Skydeck in the Eureka Tower. The Royal Botanic Gardens are a short walk east, and the South Melbourne Market is a tram stop or two away. On the river itself, Ponyfish Island is a bar built under a footbridge, a good spot for a drink on a warm evening.
Southbank is mostly apartment towers and big hotels, so it suits families and anyone who wants a bit more space. It sits just outside the free tram zone, but the CBD is a five-minute walk over the bridge.
| Hotel | Style | Best for |
|---|---|---|
| Quay West Suites Melbourne | Luxury · $$$$ | Five-star suites with kitchens right on the river, an indoor pool, and a short walk to the arts precinct. Rated 9.1. |
| Imagine Marco | Mid-range · $$$ | Serviced apartments with full kitchens, in-room laundry and a heated rooftop pool, near Crown. Rated 8.2. |
| Flinders Backpackers | Budget · $ | Southbank has no hostels, but this one on Elizabeth Street is a short walk over the river, with dorms, private rooms and a bar. |
If you’re travelling with kids, look for an apartment with a kitchen; it makes breakfasts and early dinners much easier.
Fitzroy
Fitzroy is Melbourne’s original bohemian suburb, and it’s the best place to stay in Melbourne if you want to live on coffee, vintage shops and late nights. Brunswick Street and Gertrude Street are lined with cafes, bookshops, bars and live-music venues, and the street art spills down every side lane. It’s about 2 km (1.2 miles) north of the CBD, and the tram along Brunswick Street gets you into the city in around ten minutes.
At the weekend, the Rose Street Artists’ Market sells handmade work by local artists and designers. Fitzroy has fewer hotels than the city, so most visitors stay in apartments, guesthouses or a hostel.
| Hotel | Style | Best for |
|---|---|---|
| Comfort Apartments Royal Gardens | Mid-range · $$ | Serviced apartments with kitchens and a saltwater pool, on a quiet lane between Fitzroy and the Carlton Gardens. Rated 8.0. |
| The Nunnery | Budget · $ | A quirky hostel in a former convent on Nicholson Street, with dorms, private rooms, a garden and a barbecue area. |
Fitzroy suits travellers who would rather explore one neighbourhood properly than tick off the sights, and couples on a budget who still want good nightlife.
Carlton
Next door to Fitzroy, Carlton is greener and calmer. Carlton Gardens, with the Royal Exhibition Building, is a UNESCO World Heritage Site, and the Melbourne Museum sits in the same gardens. Lygon Street, Melbourne’s Little Italy, is lined with Italian restaurants, gelato shops and cafes.
Carlton is about 1.5 km (0.9 miles) north of the CBD, with trams down Swanston Street and Lygon Street, and it’s the best area to stay in Melbourne with kids who like museums.
| Hotel | Style | Best for |
|---|---|---|
| Zagame’s House | Luxury · $$$$ | A five-star hotel at the city end of Lygon Street, a walk from the Carlton Gardens and the CBD. Rated 9.1. |
| Naughtons Hotel | Mid-range · $$$ | A restored 150-year-old pub hotel opposite the University of Melbourne, with a good restaurant and a tram at the door. Rated 8.8. |
| Best Western Plus Travel Inn | Mid-range · $$ | A practical hotel with an outdoor pool and parking, a short walk from Lygon Street. Rated 8.2. |
If you’re driving into Melbourne, Carlton is one of the easier areas for parking, which matters if you’re arriving on the drive from Sydney to Melbourne.
Collingwood
Collingwood, east of Fitzroy, is grittier and, for many locals, cooler. Smith Street is full of bars, restaurants and small shops, and the converted warehouses around Collingwood Yards host galleries, studios and live music. It’s where you’ll find some of the best street art in the city away from the CBD crowds.
Collingwood is about 2.5 km (1.6 miles) north-east of the city, with trams along Smith Street and Victoria Parade. A handful of newer hotels have opened here in the last few years, which makes it a good alternative to Fitzroy.
| Hotel | Style | Best for |
|---|---|---|
| Quest Collingwood | Mid-range · $$$ | Spacious apartments with kitchens, a gym and a terrace, near Smith Street. Rated 9.3. |
| Veriu Collingwood | Mid-range · $$$ | A stylish hotel on Johnston Street with a rooftop pool and an outdoor fireplace. Rated 8.7. |
| lyf Collingwood Melbourne | Budget · $$ | Compact rooms plus a shared kitchen and lounge, designed for social travellers and digital nomads. Rated 8.8. |
Collingwood is the best area to stay in Melbourne for live music. Expect noise on Friday and Saturday nights if your room faces Smith Street.
Richmond
Richmond, 3 km (1.9 miles) east of the CBD, is the best area to stay in Melbourne for big events. The Melbourne Cricket Ground and Melbourne Park, home of the Australian Open and Rod Laver Arena, are on its western edge, and match days fill the pubs along Swan Street.
Away from the stadiums, Victoria Street is Melbourne’s Little Saigon, with some of the best Vietnamese food in the city, and Bridge Road has outlet shopping and cafes. Trains from Richmond Station reach Flinders Street in a few minutes, and trams run along all three main streets.
| Hotel | Style | Best for |
|---|---|---|
| The Motley Hotel Melbourne | Mid-range · $$$ | A design hotel on Bridge Road, part of Hilton’s Tapestry Collection, with a bar and restaurant. Rated 9.1. |
| Amora Herencia Riverwalk Melbourne | Mid-range · $$$ | A large hotel beside the Yarra at the far end of Bridge Road, with a gym, restaurant and parking. Rated 8.4. |
| Urban Rest Lanbruk | Mid-range · $$ | Apartment-style rooms at the city end of Bridge Road, a walk from the MCG. Rated 8.7. |
For the Australian Open in January or the AFL Grand Final in September, book Richmond months ahead; hotels near the stadiums sell out and prices climb.
South Yarra and Prahran
South Yarra and Prahran, about 4 km (2.5 miles) south-east of the CBD, are Melbourne’s style suburbs. Chapel Street runs through both, with fashion boutiques and cocktail bars at the South Yarra end and a younger, more eclectic crowd as you head south through Prahran and Windsor.
The Prahran Market, one of the oldest markets in Australia, is the place for breakfast and fresh produce, and the Royal Botanic Gardens are a walk away along the river. Albert Park, home of the Formula 1 Grand Prix in March, is close by too, and trains from South Yarra Station reach the city in under ten minutes.
| Hotel | Style | Best for |
|---|---|---|
| Ovolo South Yarra | Mid-range · $$$ | A playful hotel on Toorak Road known for its happy hour and minibar extras. Rated 8.6. |
| The Olsen | Luxury · $$$ | An Art Series hotel on Chapel Street with original artworks, a heated outdoor pool and big rooms. Rated 8.5. |
South Yarra suits couples and anyone who wants to shop, eat well and be out late without the CBD crowds.
St Kilda
Just as Sydney has Bondi, Melbourne has St Kilda. About 6 km (3.7 miles) south of the CBD, it’s the best place to stay in Melbourne for the beach, a relaxed pace and long summer evenings. Walk the boardwalk along St Kilda Pier at sunset, when little penguins come ashore near the breakwater, or ride the old wooden roller coaster at Luna Park.
Acland Street is famous for its cake shops, and Fitzroy Street and the Esplanade have plenty of bars and restaurants. The St Kilda Botanical Gardens have a rose garden and a rainforest conservatory, and the beach has been one of Melbourne’s favourite swimming spots for more than a century.
Trams 16 and 96 run between St Kilda and the CBD in about 25 minutes. It’s a long-time favourite with backpackers, so it has some of the best-value Melbourne accommodation in the city.
| Hotel | Style | Best for |
|---|---|---|
| The Prince | Luxury · $$$ | An art deco landmark at the top of Acland Street with a restaurant, wine bar and live music venue. Rated 8.4. |
| In The Brick Spa and Hotel | Mid-range · $$$ | A small boutique hotel with its own spa and free parking, a few blocks from the beach. Rated 8.8. |
| Roamer St Kilda | Budget · $ | A hostel on Grey Street, formerly Selina, with dorms, private rooms, a bar and a sunny terrace. Rated 7.8. |
St Kilda is less ideal if you want to be in the middle of everything, but after a few days in the city, waking up by the bay feels like a holiday.
Docklands
Docklands, about 1.5 km (0.9 miles) west of the CBD, is Melbourne’s newest neighbourhood, built on the old port with marinas, waterfront restaurants and wide promenades. It’s home to Marvel Stadium, the Library at The Dock and a waterfront that’s easy to explore with a stroller.
Docklands sits inside the free tram zone, so the CBD is a short, free ride away, and it’s handy for Southern Cross Station and the SkyBus. It’s quiet at night outside event days, which suits families and business travellers.
| Hotel | Style | Best for |
|---|---|---|
| 1 Hotel Melbourne | Luxury · $$$$ | A five-star eco hotel in the restored goods shed on the Yarra, with an indoor pool and spa. Rated 9.4. |
| Melbourne Marriott Hotel Docklands | Luxury · $$$ | A waterfront hotel with a rooftop infinity pool and harbour views. Rated 8.4. |
| Quest NewQuay | Mid-range · $$$ | Apartments with kitchens and a terrace by the NewQuay promenade. Rated 8.7. |
If you’re in Melbourne for a concert or a game at Marvel Stadium, Docklands puts you a few minutes’ walk from the gates.
The Best Area to Stay in Melbourne for Every Trip
Where to stay in Melbourne comes down to the kind of trip you’re taking. These are our picks for the most common ones.
For a first visit
Stay in the CBD, ideally near Flinders Street or the Bourke Street Mall. You can walk or ride the free trams to most of the sights, and Southbank is right across the river. If this is where to stay in Melbourne for the first time, keep it simple and central.
For families
Southbank or Docklands for apartments with kitchens and easy access to the museums and the river, or St Kilda for the beach and Luna Park. Carlton is a good choice if your kids love museums.
For nightlife
Fitzroy and Collingwood for bars, live music and late-night food, or Chapel Street in South Yarra and Prahran if you prefer cocktail bars and clubs.
For the Australian Open
Richmond or the east end of the CBD, both within walking distance of Melbourne Park. Book early, because January is the city’s busiest month.
For a weekend
The CBD or Southbank, so you don’t waste a short trip on transport. Add a morning in Fitzroy and an evening in St Kilda, both a short tram ride away.
On a budget
A hostel in the CBD or St Kilda, or an apartment in Fitzroy or Collingwood. Melbourne hotels are cheapest from May to August, outside the school holidays and the big events.
Tours to Book in Melbourne
Wherever you stay, the best way to understand Melbourne’s laneways is with someone who knows them. The Melbourne Laneways Tour is a small-group walk of about three hours through the arcades, coffee spots and hidden bars, rated 4.9 out of 5 from more than 350 reviews.
A small-group walk through the CBD’s arcades, laneways, cafes and hidden bars, rated 4.9 out of 5.
About 3 hours · small group · starts in the CBD
If street art is your thing, the street art walking tour with a street artist covers Hosier Lane and the lesser-known walls, also rated 4.9. Beyond the city, a car or a tour opens up the Great Ocean Road, the penguins on Phillip Island and the wineries of the Yarra Valley; see our guide to the best day trips from Melbourne, or walk the coast on the Great Ocean Walk.
Getting Around Melbourne
Melbourne has one of the largest tram networks in the world, and it makes almost every neighbourhood in this guide easy to reach. Trams are free within the free tram zone, which covers the CBD and Docklands; beyond it, you’ll need a myki card, which also works on trains and buses. Public Transport Victoria has maps, fares and a journey planner.
From Melbourne Airport, about 23 km (14 miles) north-west of the city, the SkyBus runs to Southern Cross Station around the clock and takes about 30 minutes without traffic. A taxi or rideshare takes a similar time but costs more. Trains link the city with Richmond, South Yarra and the outer suburbs, and Visit Melbourne lists events and festivals across the year.
Having mobile data makes the tram apps and maps much easier to use from the moment you land. We use Airalo eSIMs when we travel.
Mobile data that works from the moment you land, without hunting for a SIM shop at the airport.
Install before you fly · data-only plans · top up in the app
You won’t need a car in the city, and parking at hotels is expensive. Hire one only for day trips; we compare prices on Discover Cars.
Map of the Best Areas to Stay in Melbourne
This map shows where to stay in Melbourne at a glance, linking the main areas from St Kilda on the bay through South Yarra, Southbank and the CBD to Fitzroy and Richmond.
Carlton and Collingwood sit either side of Fitzroy, and Docklands is just west of the CBD, so everything here is within about 6 km (3.7 miles) of Flinders Street.
Frequently Asked Questions
What is the best area to stay in Melbourne for tourists?
The CBD or Southbank. Both are central, inside or next to the free tram zone, and close to the main sights, restaurants and the river.
Is it better to stay in the Melbourne CBD or Southbank?
The CBD for laneways, shopping and the most trams; Southbank for river views, the arts precinct and quieter nights. They’re a five-minute walk apart.
Where should I stay in Melbourne for the first time?
The CBD, ideally near Flinders Street or the Bourke Street Mall, so you can walk or ride the free trams almost everywhere.
Where should you stay in Melbourne with kids?
Southbank or Docklands for apartments and easy attractions, Carlton for the Melbourne Museum, or St Kilda for the beach and Luna Park.
Where should you stay in Melbourne for the Australian Open?
Richmond, East Melbourne or the east end of the CBD, all within walking distance of Melbourne Park. Book several months ahead.
Is St Kilda a good place to stay in Melbourne?
Yes, for the beach, sunsets and a relaxed pace, about 25 minutes from the CBD by tram. It’s less ideal if you want to be in the middle of everything.
Is public transport in Melbourne easy for visitors?
Yes. Trams are free in the CBD and Docklands, and a myki card covers trams, trains and buses beyond the free tram zone.
Where should a couple on a budget who want nightlife stay in Melbourne?
Fitzroy or Collingwood. They have good-value apartments and hostels, the best bars and live music, and a short tram ride to the CBD.
Final Thoughts
Australia has some wonderful cities, but Melbourne has a special place in our hearts. It rewards you for picking the right neighbourhood: the laneways and rooftop bars of the CBD feel like a different city from the bayside calm of St Kilda or the cafes and band rooms of Fitzroy. There’s always a festival, a game or an exhibition on, which makes it a year-round city to visit.
If you’re still deciding where to stay in Melbourne for your first trip, stay central and use the trams to sample the rest. On your second trip, base yourself in Fitzroy or St Kilda to see how Melbourne lives day to day. If Melbourne wins you over, it’s one of our picks in our guide to the best places to live in Australia, and if you’re carrying on up the coast, see our guide to where to stay in Sydney and our Australia travel guide.
Where’s your favourite place to stay in Melbourne?
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