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If you like food, art, music, festivals, and theatre, you’ll love visiting Melbourne, the cultural capital of Australia. There are so many things to do in Melbourne, ranging from attending sporting events and visiting art galleries to sampling delicious food or bar hopping in Melbourne’s famous lanes. 

In addition to being a great city, Melbourne is also a wonderful starting point for a number of great day trips. Mornington Peninsula, Yarra Valley and the beatuiful coastal drive down the Great Ocean Road are some of the most popular ways to escape Melbourne and enjoy it’s surroundings. 

Where to stay inMelbourne, Australia

If you are planning to spend a few days in the city and are wondering where to stay in Melbourne, Australia, we’ve got your covered. 

There are neighbourhoods that are perfect for nightlife, culture, the beach, or gastronomy. We’ve spent a good amount of time in Melbourne and know the city well. These are our top recommendations of where to stay in Melbourne, Australia, including some of the recommendations for best hotels and neighbourhoods in the city.

Where to Stay in Melbourne, Australia: The Best Neighbourhoods and Hotels

Central Business District

While it may be the most expensive district in the city, the CBD (Central Business District) is a happening place. There is everything from street art to classy cocktail bars, and a wide variety of fun in between.

Where to stay inMelbourne, Australia
Image by Adrian Malec from Pixabay

Some of the best things to do in the CBD include walking in the public parks, exploring Chinatown, and getting lost in the many small alleyways that crisscross the main streets. There are lots of historic buildings and shopping areas in this district, too.

Where to Stay in Melbourne CBD

Luxury Hotel

Sofitel Melbourne on Collins is a 5-star eco-hotel located just on the edge of the CBD. It has huge, elegant rooms and sweeping views of Melbourne city.

Mid-Range Hotel

Alto Hotel on Bourke is a new, carbon-neutral hotel that is making waves in the sustainable tourism world. It’s won all kinds of awards for its eco-friendly practices and is a cozy, comfortable place to stay.

Where to stay in Melbourne Australia
Photo courtesy of Alto Hotel

Budget Hotel

We’re big fans of YHA Hostels and really enjoy staying in their locations all across the country. In Melbourne, there are two YHA Hostels: Melbourne Central YHA and Melbourne Metro YHA, both within the CBD.

Fitzroy & Carlton

Two small side-by-side neighbourhoods to the north of the city centre, Fitzroy and Carlton, are great options for where to stay in Melbourne, Australia. They’re hotspots for nightlife and attract a young crowd to their buzzing bars and restaurants. 

Where to stay in Melbourne Australia

Although they’re technically already in the suburbs, Fitzroy and Carlton are not short on fun things to do. There’s awesome street art, shopping centres, quirky boutiques, and charming cafes. It’s also a lot more affordable since it’s slightly outside of the city.

Where to Stay in Fitzroy & Carlton, Melbourne

Luxury Hotel

Quest Royal Gardens is a collection of hotel-style serviced apartments right near the Carlton Gardens. They’re clean, classy, and offer all the comforts of home in a central location.

Mid-Range Hotel

If you’re looking for a cozy design hotel, Naughtons Hotel is the perfect place. It has an excellent restaurant and is surrounded by parks on all sides.

Where to stay in Melbourne Australia
Photo courtesy of Naughtons Hotel

Budget Hotel

The Nunnery is a quirky backpacker hostel right at the center of the action. Its funky gardens and rooftop terrace make it an awesome place to stay in Melbourne.

South Bank

Right across the Yarra River from the CBD, you’ll find the South Bank. Here, you can take in some of the best views in the city by going up to the observation deck in the Eureka Tower. You’ll also want to visit the National Gallery of Victoria, one of the most impressive and diverse museums in the country.

Where to stay inMelbourne, Australia
Australia Melbourne Cover Photo

The South Bank is well known for the South Melbourne Market, an energetic group of indoor food stalls, cafes, and vendors. The Royal Botanic Gardens are also well worth a visit, as they are full of fun things to do. Walkthrough the many greenhouses, visit the statues and memorials, catch a concert, or see a movie at the outdoor cinema.

Where to Stay in South Bank, Melbourne

Luxury Hotel

The Quay West Suites are an awesome choice for both location and style. Right on the river, this hotel has gorgeous interiors, great food, and a green roof terrace. 

Where to stay in Melbourne Australia
Photo courtesy of Quay West Suites 

Mid-Range Hotel

Imagine Marco is a complex of mid-ranged serviced apartments right in the center of the South Bank. In addition to lovely suites and a full gym, a stunning rooftop pool is its best feature.

Budget Hotel

Urban Central is what some would consider a “luxury hostel.” It has an awesome common area, comfortable rooms, a fun bar, and a leafy outdoor terrace.

St. Kilda

Just as Sydney has Bondi Beach, Melbourne has St. Kilda. About 15 minutes south of central Melbourne, this beachside neighbourhood is perfect for those who want to get away from the noise of the city and just relax. The beach here is beautiful and draws in a lot of budget backpackers.

Where to stay in Melbourne Australia

St. Kilda is also a very historic area. There are old buildings to tour and a wooden boardwalk that stretches out into that ocean that makes for a great walk. Make sure to stick around in the evening, as the sunsets here are great. If you want to know where to stay in Melbourne, Australia for a beachy getaway, St. Kilda is definitely our recommended choice. 

Where to Stay in St Kilda, Melbourne

Luxury Hotel

The Prince Hotel wears a lot of hats as a hotel, restaurant, bar, and event venue. The rooms and suites strike the perfect balance between luxury and comfort.

Mid-Range Hotel

Just around the block from the Prince Hotel, you’ll find the Rydges Hotel, a mid-range hotel with a bright and airy design. The rooms are just as visually appealing, with warm wood, fluffy pillows, and ocean views.

Where to stay in Melbourne Australia
Photo courtesy of Rydges Hotel

Budget Hotel

Habitat HQ Hostel is an eco-friendly budget accommodation just a few blocks away from the ocean. As the very first carbon-neutral hostel in Melbourne, you can be sure your stay is not only fun and enjoyable but is also good for the planet.


Australia has some wonderful cities, but Melbourne has a special place in our hearts. With its buzzing energy and creative spirit, it’s unlike any other metropolis on the continent. Throughout the year, the city sees all kinds of festivals, events, activities, and, of course, the weather. There’s always something going on here, making it a year-round fun place to be. It truly is a special city and it deserves a spot on every traveler’s bucket list.

Hopefully, this guide has given you some insights on where to stay in Melbourne, Australia! What’s your favourite city in Australia?

Read Next: 8 Best Melbourne Weekend Getaways

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We spent many years living and traveling around Australia exploring the country in-depth!


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