Where to Stay in Melbourne? The 6 Best Areas & Places to Stay

Melbourne is Australia’s second-largest city and in many ways the opposite of Sydney. Here it’s the coffee bars, the street-art laneways, the trams and the food scene that give the city its atmosphere. The centre is flat, and the trams are free within the CBD. 1 Australian dollar is worth roughly 53p, which helps when you’re working out where to stay in Melbourne.

The city is big, though, and the neighbourhoods are very different. Some people want to stay right in the thick of it among the towers of the CBD, while others want the beach in St Kilda or café life in Fitzroy. Here are my six suggestions for where to stay in Melbourne, with three hotels in each area.

The Best Areas: Where to Stay in Melbourne

• CBD - best area for first-time visitors
• Southbank - best area for culture and views over the Yarra
• Fitzroy & Collingwood - best area for cafés, bars and street art
• Carlton - best area for Italian food and peace and quiet close to the centre
• South Yarra & Prahran - best area for shopping and green parks
• St Kilda - best area for the beach and sunsets

Below, I go through the areas one at a time with a map, transport, price level and three hotels in each. The prices come from a search for a weekend in March for two people. Expect them to rise sharply when the Australian Open is played in January, during the Formula 1 race in Albert Park and around the Melbourne Cup in November.

1. CBD - best area for first-time visitors 🚋

• 📍 Distance to the centre: You’re staying in the centre. From Flinders Street Station at the southern end to Queen Victoria Market at the northern end is about a 20-minute walk.
• 🚋 Transport: The trams are free throughout the Free Tram Zone, which covers the CBD. Trains run from Flinders Street, Southern Cross, Melbourne Central and Parliament.
• ✈️ Time from Melbourne Airport: About 30 minutes by SkyBus to Southern Cross Station when the traffic is moving.
• 💰 Price level: $$ to $$$$. The three hotels below cost roughly 255 to 400 dollars (around £135 to £210) per night when I searched for a weekend in March.
• 👮 Safety: Safe and busy until late. Around King Street and the junction of Flinders and Swanston Street it can get loud on Friday and Saturday nights.

The CBD is what locals call the centre: a rectangle of straight streets between the Yarra River, Spring Street and Queen Victoria Market. It sounds dull on a map, but this is where Melbourne keeps its charm. Between the big streets lie narrow laneways such as Degraves Street with its coffee bars and Hosier Lane, where every wall is covered in street art. Flinders Street Station, with its yellow façade and the clocks above the entrance, sits directly opposite Federation Square, and at Queen Victoria Market you can buy fruit, cheese and food from the stalls. The market is open on Tuesday, Thursday, Friday, Saturday and Sunday, so check the days before you go.

The big plus is transport. Within the Free Tram Zone you ride the trams for free, and you don’t even need a card. If you’re heading further out, you pay with a myki card, and a day of unlimited travel costs around 11 dollars (about £6) and even less at weekends.

See hotels in the CBD here.

I’d stay here if it’s your first trip to Melbourne, if you only have two or three days, or if you want to reach St Kilda, Fitzroy and the Great Ocean Road tours from the hotel door. SkyBus runs from the airport to Southern Cross Station at the western end of the CBD, and a single ticket costs 25.90 dollars (around £14). I’ve gathered all the options, including train and taxi, in the guide From Melbourne Airport to the city centre.

The downside is that the CBD is a business district with lots of tall towers, and the hotel rooms are often small. If you stay in the western part around Southern Cross, it gets quiet in the evening, while the eastern part around Collins Street, Chinatown and the theatres is livelier.

Hotels in the CBD

Grand Hyatt Melbourne - five-star classic on Collins Street

The Grand Hyatt is on Collins Street in the smart eastern end of the CBD, with the shops, theatres and Chinatown a few minutes away. The hotel has a spa, a gym and a restaurant, and guests rate the service highly. It’s the most expensive of my three picks here, and some guests feel the lighting and TV system in the rooms are starting to look dated.

One guest writes on Booking.com: “Excellent customer service!”

See photos and book Grand Hyatt Melbourne here.

Rydges Melbourne - heated outdoor pool in the heart of the theatre district

Rydges is on Exhibition Street right by Chinatown and the theatres, and it has a heated outdoor pool that’s open all year round, which is rare in the CBD. Its guest rating is the highest of the three, and there’s a restaurant and bar on site. Several guests mention that the walls are thin, though, so bring earplugs if you’re a light sleeper.

From a review: “The staff were friendly.”

See photos and book Rydges Melbourne here.

ibis Melbourne Central - cheapest option close to Queen Victoria Market

ibis Melbourne Central is on Little Lonsdale Street in the north-western part of the CBD, so you’re a few minutes’ walk from Queen Victoria Market and Melbourne Central. It was the cheapest of my three suggestions in the centre when I searched, and there’s a bar and restaurant. The rooms, on the other hand, are very small, which several guests complain about.

One guest highlights: “The hotel had everything, and the staff were very polite and welcoming.”

See photos and book ibis Melbourne Central here.

2. Southbank - best area for culture and views over the Yarra 🎭

• 📍 Distance to the centre: Just across the Yarra. From Southgate, you can walk over Princes Bridge to Flinders Street Station in about five minutes.
• 🚋 Transport: The trams on St Kilda Road run into the CBD and on to St Kilda. You can manage most things on foot.
• ✈️ Time from Melbourne Airport: Around 35 to 40 minutes on the SkyBus to Southern Cross, followed by a short taxi or tram ride.
• 💰 Price level: $$ to $$$$. The three hotels below cost around 285 to 560 Australian dollars (around £150 to £295) per night when I searched for a weekend in March.
• 👮 Safety: Safe, with lots of people along the river until late. Around the casino, there can be partying and drunk people at weekends.

Southbank is Melbourne’s arts district, set on the south bank of the Yarra directly opposite the CBD. Along the promenade between Southgate and Crown, you’ll find restaurants and bars overlooking the river, and in the evening you can watch the skyline light up across the water. This is where you’ll find Arts Centre Melbourne with its distinctive spire and the National Gallery of Victoria, where the permanent collections at NGV International are free and open every day from 10am to 5pm. Only the major special exhibitions charge admission.

A little further in stands Eureka Tower, with the Melbourne Skydeck observation deck on the 88th floor. An adult ticket costs from 33 Australian dollars (around £17) when you book online, which is cheaper than paying at the door. West of Southbank lies the Crown complex with its casino, restaurants and nightclubs, and further west still is the convention centre in South Wharf.

See hotels in Southbank here.

I would stay here if you want a view from your hotel room, plan to go to the theatre or a concert, or would like to stroll along the river into the centre in the morning. Many of the hotels are high up in the towers, and a north-facing room gives you the whole skyline. Southbank is also a good choice for families, as both the Royal Botanic Gardens and the city centre are within walking distance.

The downside is that the area behind the promenade is mostly apartment towers and wide roads, and it can get very windy between the buildings. If you stay far down City Road or Normanby Road, you’ll have further to walk, and the surroundings are more grey than charming.

Hotels in Southbank

Crown Metropol Melbourne - large luxury hotel with an indoor pool and views

Crown Metropol is part of the Crown complex on Whiteman Street, so the casino, restaurants and bars are right beneath you. The hotel has an indoor pool with views over the city, and the rooms are modern. It’s a big hotel, and some guests say check-in felt more like a conveyor belt than luxury.

One guest writes on Booking.com: “The interior design was fantastic. Modern and very well thought out.”

See photos and book Crown Metropol Melbourne here.

AC Hotel by Marriott Melbourne Southbank - modern hotel with an infinity pool

AC Hotel is on Normanby Road at the western end of Southbank, close to the convention centre, and has a heated outdoor infinity pool, a gym and a bar. Its guest rating is the highest of the three here, and the price sits in the middle. Allow 15 to 20 minutes’ walk to Flinders Street, and some guests mention that the view is mostly of the traffic.

From one review: “The location. The rooms are nice and very cosy, and the staff are always lovely and accommodating.”

See photos and book AC Hotel Melbourne Southbank here.

Mercure Melbourne Southbank - best riverside location for the money

Mercure sits on the corner of Southgate Avenue and Riverside Quay, just a couple of minutes from the promenade and Princes Bridge. It was the cheapest of the three when I searched, and you get a location that matches the pricier hotels. The rooms are simple, and a few guests mention that it was difficult to get extra pillows.

One guest highlights: “The hotel is in a really good spot and very convenient for getting into the city.”

See photos and book Mercure Melbourne Southbank here.

3. Fitzroy & Collingwood - best area for cafés, bars and street art 🎨

• 📍 Distance to the centre: About two kilometres north-east of the CBD. From Brunswick Street, it’s a 25-minute walk to Bourke Street Mall.
• 🚋 Transport: Trams run along Brunswick Street, Gertrude Street and Smith Street into the centre in 10 to 15 minutes.
• ✈️ Time from Melbourne Airport: About 30 minutes by taxi without traffic, or take the SkyBus to Southern Cross and a tram onwards.
• 💰 Price level: $$ to $$$. The three hotels below cost around 310 to 335 dollars (roughly £165 to £175) per night when I searched for a weekend in March.
• 👮 Safety: Generally safe and lively in the evening. Smith Street and the side streets in Collingwood can feel a bit rough late at night, so take a taxi home if you’ve been drinking.

Fitzroy is Melbourne’s oldest suburb and the neighbourhood many locals will recommend when you ask where the city is most fun. Brunswick Street is the main drag, lined with vintage shops, record stores, cafés and bars, and in the side streets the walls are covered in street art. Gertrude Street is a little more upmarket, with design shops and restaurants, while Smith Street, on the border with Collingwood, has more pubs and cheaper places to eat. At weekends, the Rose Street artists’ market is open, selling jewellery, prints and ceramics from local designers.

Collingwood lies just to the east and has the same vibe, only a bit grittier. Here, old factories have been turned into breweries, galleries and music venues, and many of the cafés in both neighbourhoods are packed for brunch at weekends. Watch out for the name: the large park Fitzroy Gardens, home to Cook’s Cottage, isn’t in Fitzroy at all, but in East Melbourne on the edge of the CBD.

See hotels in Fitzroy & Collingwood here.

I’d stay here if you’ve been to Melbourne before, if you’re travelling as a couple or with friends, or if you’d rather sit in a café than queue at a sight. You can walk to Carlton and the Royal Exhibition Building in 15 minutes and hop on the tram into the CBD when you want to see the rest of the city.

The downside is that there are few proper hotels in the area, and many of the places to stay are apartments. So book well in advance, especially for weekends. If your room faces Brunswick Street, there can be noise from the bars until late, so ask for a room on a side street if you want to sleep.

Hotels in Fitzroy & Collingwood

The StandardX, Melbourne - design hotel in the heart of Fitzroy

The StandardX is on Rose Street, a few steps from Brunswick Street and the artists’ market. It’s a five-star design hotel with a restaurant, bar and terrace, and it has one of the highest guest ratings in this whole guide. The standard rooms are small, though, so go for a bigger category if you’re staying more than a couple of nights.

One guest writes on Booking.com: “Fantastic hotel, I would definitely stay there again.”

See photos and book The StandardX here.

Tyrian Serviced Apartments Fitzroy - apartments with a kitchen and parking

Tyrian is on Johnston Street, a couple of minutes from the junction with Brunswick Street, and has apartments with kitchens and room for both couples and families. The guest rating is very high, and parking is available if you’ve hired a car. One guest mentions that the shower leaked water onto the floor.

From a review: “Very warm and clean.”

See photos and book Tyrian Serviced Apartments here.

District Apartments Fitzroy - the cheapest of my three picks in Fitzroy

District Apartments is on Argyle Street in the quiet part of Fitzroy between Brunswick Street and Smith Street. You get an apartment with a kitchen, there’s a laundry in the building, and it was the cheapest of the three when I searched. A few guests have had problems at check-in, so read the instructions from the property carefully before you arrive.

One guest writes: “Absolutely loved the place. Fantastic location, and I’ll definitely stay here again.”

See photos and book District Apartments Fitzroy here.

4. Carlton - best area for Italian food and peace and quiet close to the centre 🍝

• 📍 Distance to the centre: Just north of the CBD. From Lygon Street it’s a 15 to 20-minute walk to Bourke Street Mall.
• 🚋 Transport: The trams on Swanston Street run right through the CBD, and the southern part of Carlton is close to the Free Tram Zone.
• ✈️ Time from Melbourne Airport: About 25 to 30 minutes by taxi without traffic, or SkyBus to Southern Cross and then a tram onwards.
• 💰 Price level: $$ to $$$. The three hotels below were around AU$285 to AU$375 (around £150 to £195) per night when I searched for a weekend in March.
• 👮 Safety: One of the quietest areas in this guide. There are lots of students around the university, but not much nightlife.

Carlton is the neighbourhood where Italian immigrants settled after the Second World War, and you can still feel it on Lygon Street. The street is lined with pizzerias, espresso bars, gelaterias and restaurants with tables out on the pavement, and it’s here that Melbourne’s coffee culture has some of its roots. It isn’t always the best Italian food in the city, as some places live mostly off tourists, but the atmosphere on a warm evening is hard to beat.

In the southern part of Carlton you’ll find Carlton Gardens and the Royal Exhibition Building from 1880. The building and the gardens were added to the UNESCO World Heritage List in 2004, and Museums Victoria runs the building as well as the large Melbourne Museum right next door. To the west is the University of Melbourne, and Queen Victoria Market is only a 15-minute walk away.

See hotels in Carlton here.

I would stay here if you want quiet nights while still being able to walk into the centre, if you’re travelling with children and want the museum and gardens on your doorstep, or if good food matters more to you than nightlife. Carlton is also a good compromise between the CBD and Fitzroy, as both are within walking distance. With children, Melbourne Museum is an obvious choice on a rainy day, and afterwards you can head straight out into Carlton Gardens, where there’s plenty of space to run around under the big trees.

The downside is that the choice of hotels is small, and many of them are apartments or older, motel-style places. Lygon Street also gets busy at weekends, so pick a hotel a little away from the street if you want an early night.

Hotels in Carlton

Zagame’s House - five-star boutique hotel by Carlton Gardens

Zagame’s House is at the southern end of Lygon Street, a short walk from both Carlton Gardens and the CBD. It’s a five-star hotel with a restaurant, bar and gym, and guests give it one of the highest ratings in the area. Some guests mention that the welcome at check-in wasn’t up to the standard of the rest of their stay.

One guest writes on Booking.com: “Loved the decor, very clean and a very comfortable bed.”

See photos and book Zagame’s House here.

BEST WESTERN PLUS Travel Inn - pool and parking in the heart of Carlton

Travel Inn is on the corner of Grattan Street and Drummond Street, a few minutes from Lygon Street. There’s a heated outdoor pool, a restaurant and parking with an EV charger, so it’s a practical choice if you’ve hired a car. The rooms are simple, and the bathrooms are small.

From one review: “Fantastic location. I enjoyed my stay.”

See photos and book BEST WESTERN PLUS Travel Inn here.

The Eminence Apartments by CLLIX - apartments for groups and families

The Eminence is on Queensberry Street between Carlton and Queen Victoria Market and has apartments with kitchens, a shared terrace and a barbecue. It was the cheapest of the three when I searched, and it works well when there are several of you sharing. One guest mentions that the bathroom was very small for a family.

One guest highlights: “Fantastic location, clean and super good for a group!”

See photos and book The Eminence Apartments here.

5. South Yarra & Prahran - best area for shopping and green parks 🛍️

• 📍 Distance to the centre: Around four kilometres south-east of the CBD, on the other side of the Yarra and the Royal Botanic Gardens.
• 🚆 Transport: Trains from South Yarra Station and Prahran Station to Flinders Street, and trams along Toorak Road and Chapel Street.
• ✈️ Time from Melbourne Airport: Around 35 to 40 minutes by taxi without traffic, or the SkyBus to Southern Cross and then a train onwards.
• 💰 Price level: $$ to $$$$. The three hotels below cost around 215 to 570 dollars (around £115 to £300) per night when I searched for a weekend in March.
• 👮 Safety: Safe and affluent. The southern part of Chapel Street towards Windsor has lots of bars, so there can be noise and drunk people at the weekend.

South Yarra and neighbouring Prahran are affluent Melbourne. Chapel Street is one of the city’s longest shopping streets, with everything from Australian designer labels to budget chains, while Toorak Road has cafés, restaurants and shops for people with a bit more money to spend. Prahran Market has been in the neighbourhood since the 1800s and is one of the best places in the city to buy fresh food, coffee and cheese.

The biggest attraction is the Royal Botanic Gardens, which lie between South Yarra and Southbank. They are among the most beautiful gardens in Australia, with lakes, huge trees and views of the skyline, and entry is free. They open at 7.30am and close at 7.30pm in summer and 5.30pm in winter, from April to September. On the edge of the gardens stands the Shrine of Remembrance war memorial, where from the balcony you look straight up St Kilda Road towards the skyline.

See hotels in South Yarra & Prahran here.

I would stay here if you’re travelling as a couple and want shopping, good restaurants and a morning walk in the park right on your doorstep. The area also suits a slightly longer trip where you don’t need to be in the centre every day. The train from South Yarra Station gets you to Flinders Street in a few minutes, and St Kilda is close by to the south.

The downside is that you’re not within walking distance of the CBD unless you walk through the park, and many of the restaurants and shops are expensive. On weekend evenings, Chapel Street towards Windsor becomes a party street, so stay at the northern end or near Toorak Road if you want peace and quiet.

Hotels in South Yarra & Prahran

The Lyall - small luxury hotel on a quiet side street

The Lyall is on Murphy Street, a quiet residential street in the northern part of South Yarra, so you can walk to both the Royal Botanic Gardens and Chapel Street. It’s a five-star hotel with a restaurant and bar, and its guest rating is the highest in this entire guide. It’s also the most expensive, and guests mention that parking is pricey.

One guest writes on Booking.com: “Location, presentation, atmosphere and service were all excellent.”

See photos and book The Lyall here.

Ovolo Melbourne South Yarra - colourful design hotel on Toorak Road

Ovolo is on Toorak Road, a few minutes from South Yarra Station, and has playful, colourful décor, a restaurant and a bar. It suits you if you’d like a hotel with personality and a short walk to Chapel Street. The rooms are very small, though, and that’s the most common complaint from guests.

From a review: “The style of the hotel was lovely, as was the location, and the staff were excellent.”

See photos and book Ovolo Melbourne South Yarra here.

The Olsen Melbourne Art Series - best value for money on Chapel Street

The Olsen is on Chapel Street and is named after the Australian painter John Olsen, whose works hang in the hotel. There’s a heated outdoor pool, a restaurant and a gym, and surprisingly it was the cheapest of the three when I searched. Prices vary a lot from date to date, so check several dates before you book.

One guest highlights: “Fantastic stay. The room was well equipped and very clean, and the beds were very comfortable.”

See photos and book The Olsen here.

6. St Kilda - best area for the beach and sunsets 🏖️

• 📍 Distance to the centre: About six kilometres south of the CBD, out on Port Phillip Bay.
• 🚋 Transport: Trams run from St Kilda to Flinders Street and Bourke Street in about 25 to 30 minutes.
• ✈️ Time from Melbourne Airport: About 40 to 45 minutes by taxi without traffic, or SkyBus to Southern Cross and a tram onwards.
• 💰 Price level: $ to $$$. The three hotels below cost around 250 to 455 Australian dollars (roughly £130 to £240) per night when I searched for a weekend in March.
• 👮 Safety: Safe during the day and along the beach. Around Fitzroy Street and Grey Street things can get a bit rowdy late in the evening, so stick to the well-lit streets.

St Kilda is Melbourne’s beach neighbourhood and the place where the city puts its sunglasses on at the weekend. The beach isn’t Bondi, as the water in Port Phillip Bay is calm and the waves are small, but there’s a long promenade, palm trees, cycle paths and a pier that stretches far out into the bay. On Sundays there’s an arts and crafts market on The Esplanade, and Acland Street is home to the old cake shops with windows piled high with cakes.

The most special thing here is the little penguins that live by the breakwater at the end of St Kilda Pier. You can watch them come ashore after sunset from a viewing platform, and it’s free, but you need to book a ticket online because places are limited. Right by the beach is the Luna Park amusement park with its huge, grinning entrance, which has been a landmark of the area since 1912.

See hotels in St Kilda here.

I’d stay here if you’re in Melbourne in summer and want to start the day with a walk on the beach, or if you’re travelling with children who’d rather go to Luna Park than a museum. St Kilda is also a good choice on a longer trip when you’ve already seen the centre. Sunset over the bay from the pier is one of the best free experiences in the city, and if you’ve hired a bike, you can follow the waterfront path towards Port Melbourne or Brighton.

The downside is the distance. Every trip into the centre takes half an hour by tram, and in winter the beach isn’t a reason to stay here. The area also has a reputation for partying and backpacker hostels, so read the reviews about noise before you book.

Hotels in St Kilda

The Prince - boutique hotel by the beach and Acland Street

The Prince is on Acland Street, a stone’s throw from the beach and Luna Park, and is one of St Kilda’s best-known addresses, with a restaurant, bar and live music venue in the same building. Guests praise the breakfast and the staff. The big drawback is the noise from the bars, and some feel the price is high.

One guest writes on Booking.com: “The staff were friendly, the rooms comfortable and the breakfast was delicious.”

See photos and book The Prince here.

Novotel St Kilda - modern hotel on Fitzroy Street

Novotel is on Fitzroy Street, a few minutes’ walk from the beach and the trams into the centre. There’s a restaurant, a bar and family rooms, and the guests who have reviewed it give it high scores, although there aren’t many reviews yet. One guest mentions that the walls are thin.

From a review: “Beautiful, open room, comfortable bed, friendly staff, clean and inviting.”

See photos and book Novotel St Kilda here.

Cosmopolitan Hotel and Apartments - cheapest option near Acland Street

Cosmopolitan is on Carlisle Street, a couple of minutes from Acland Street and the beach, and has both hotel rooms and apartments with parking. It was the cheapest of the three when I searched, but it also has the lowest guest rating, and some guests have complained about the cleaning. Choose it when price matters most.

One of the guests writes: “The staff were friendly and polite, and the room was clean and comfortable.”

See photos and book Cosmopolitan Hotel here.

Where not to stay in Melbourne?

Docklands lies just west of the CBD and looks appealing on a map with its marina, new towers and stadium, but the area is mostly offices and flats, and in the evening people and restaurants are few and far between. Don’t stay by the airport in Tullamarine either, unless you have a very early flight, as it’s about 25 kilometres into the city. The cheap motels far out in the suburbs will save you a bit of money, but you’ll end up spending much of your holiday on trams and trains.

And do check the calendar. When the Australian Open is played in January, during the Formula 1 in Albert Park and in the week around the Melbourne Cup in November, prices rise and the good hotels sell out early. If you’re travelling during those periods, book well in advance.

If it’s your first trip to Melbourne, I’d stay in the CBD, or in Southbank if you want views over the river. If you’re a couple after cafés and bars, choose Fitzroy, and if you want peace and quiet and good food, Carlton is a good bet. South Yarra is for those who want to shop and stroll in the park, and St Kilda for those who want the beach and sunsets.

If you have an extra day, head out along the Great Ocean Road, one of the world’s most beautiful coastal roads, with the Twelve Apostles rock stacks. The road starts at Torquay, about an hour and a half’s drive south-west of the city, and Visit Melbourne has a good overview of the region. If you don’t want to drive yourself, you can take a full-day tour along the Great Ocean Road to the Twelve Apostles from around 125 Australian dollars (around £65). If you’d rather have the freedom and stay overnight along the way, you can hire a car in the city or at the airport, and remember that Australians drive on the left, just like in the UK.

If you’re travelling on around the country, it’s about an hour and a half’s flight to Sydney, and here you can read my guide to where to stay in Sydney. Many people also break up the long flight from Europe with a stopover in Asia, in which case my guide to where to stay in Singapore can help you. And if your trip continues across the Tasman Sea, I’ve rounded up the best bases in my guide to where to stay in New Zealand.

Travel ressources & websites I use all the time 👇

• Booking.com has the best offers on hotels and unique places to stay
• GetYourGuide is the best place to book tours & activities with free cancellation
• Welcome Pickups is the best & safest place to pre-book airport transfers

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