Melbourne, Australia is often referred to as the world’s most livable city. From a vibrant street art scene, interesting architecture, loads of live music, outdoor space and a fun foodie scene, this coastal capital of Victoria should be on your travel bucket list. Deciding where to stay in Melbourne shouldn’t take up all your planning time, so we’ve compiled a list of the best areas and hotels to choose from.

We will cover off how to decide where to stay in Melbourne Australia, Melbourne neighborhood guide, different styles of Melbourne accommodation including Melbourne hostels, cheap hotels Melbourne, serviced apartments Melbourne and general Melbourne hotels and many many more.

This post contains some affiliate links for your convenience.  Click here to read my full disclosure policy. 

Melbourne CBD – Where to stay in Melbourne for shopping

As you might imagine, the central business district is Melbourne’s main downtown area. The CBD is best place to stay in melbourne for shopping. Southbank and South Yarra are just around the corner of the CBD with lots of Melbourne hotels and restaurants and is a short walk from everything, with a train station for easy access to other parts of the city.

The public transport system in Melbourne isn’t bad compared to other Australian cities, you can easily jump on a tram and get from A to B. This is the best area to stay for holiday in Melbourne as it’s so central.

Melbourne city (and surrounding areas) include popular attractions such as the Queen Victoria Market, Southern Cross Station, Eureka Skydeck, Sea life aquarium, Royal botanic gardens and Bourke street, all withing easy walking distances of the city.

Where to stay in Melbourne CBD

Cheapest Backpacking Hostels in Melbourne CBD:
The Greenhouse Backpacker
United Backpackers Melbourne
Nomads All Nations Hostel
Melbourne Central YHA

Budget Hotels in Melbourne CBD:
ibis Styles Kingsgate Hotel
Metro Apartments on Bank Place
Space Hotel
City Centre Budget Hotel

Mid-Range Hotels in Melbourne CBD:
Best Western Riverside Apartments
Oaks on Market
Clarion Suites Gateway
Apartments of Melbourne Collins Street

Family Friendly Hotels in Melbourne CBD:
Aura on Flinders Serviced Apartments
Apartments Of Melbourne Northbank
Adina Apartment Hotel Melbourne Northbank
Vibe Savoy Hotel Melbourne

Affordable Luxury Hotels in Melbourne CBD:
InterContinental Melbourne The Rialto (best place to stay in Melbourne cbd)
The Great Southern Hotel
Notel
QT Melbourne

Docklands – Best place to stay in Melbourne for tourist

Docklands is an inner-western suburb of Melbourne. It’s only 2 km from Melbourne’s CBD and is a great spot to stay, if you want to go shopping or having a lazy day enjoying a bite to eat at one of the number of cafes along the bay. Docklands is a short walk to the CBD if you want to head in for dinner or go for a wander.

It’s also located just around the corner from “Eithad Stadium” so you can catch a game of Australian “footy” as well as Federation Square, a cultural display! This is where to stay in Melbourne for a weekend, it has a much more relaxed vibe than the cbd and is in my opinion anyway the best place to stay in Melbourne city for the first time.

Best Places to Stay in Docklands

Budget Hotels in Docklands:
Travelodge Hotel Melbourne Docklands
AKOM Docklands

Mid-Range Hotels in Docklands:
Flinders Wharf Apartments
Docklands Private Collection of Apartments
Stunning Apartments Docklands

Family Friendly Hotels in Docklands:
Melbourne Short Stay Apartments – Lonsdale Street
Winston Apartments Docklands
Peppers Docklands
Apartments Melbourne Domain Docklands

Affordable Luxury Hotels in Docklands:
CBD Harbour View Luxury Apartment
Orange Stay Apartments
Crowne Plaza Melbourne
The Sebel Melbourne Docklands

Prahran – Best place to stay in Melbourne for nightlife

Prahran is an inner suburb of Melbourne, known for trendy bars, Southeast Asian restaurants and late-night clubs. There are many chic boutique hotels in this area, which is also very residential, so you can see how the locals live. Chapel Street is where you’ll find young professionals hanging out at juice shops, while Greville Street has an alternative edge with vintage boutiques and record shops.

Best Places to Stay in Prahran

Cheapest Backpacking Hostels in Prahran:
Back of Chapel Backpackers
Urban Central
Como Court by Crest

Budget Hotels in Prahran:
Hotel Claremont

Mid-Range Hotels in Prahran:
Art Series – The Cullen
Quest Prahran
Bayview On The Park

Family Friendly Hotels in Prahran:
Quest on Chapel
Melbourne Parkview Hotel
Pullman Melbourne Albert Park

Affordable Luxury Hotels in Prahran:
The Langham, Melbourne
Lyall Hotel and Spa
The Como Melbourne – MGallery by Sofitel

Collingwood – Best places to live in Melbourne Australia

Collingwood is also an inner suburb, which has undergone gentrification in recent years. Once a blue-collar neighborhood filled with warehouses and worker’s cottages, these spaces have now been converted into hip lofts, galleries, cafes and boutiques.

If you are into live music, Collingwood is a great place to stay in Melbourne, with frequent punk and indie shows at venues like the Tote Hotel. Along Smith Street, you’ll find more restaurants, bars and vintage boutiques.

Best Places to Stay in Collingwood

Budget Hotels in Collingwood:
Comfort Hotel East Melbourne
Albert Heights Serviced Apartments

Mid-Range Hotels in Collingwood:
Birches Serviced Apartments
Tribeca Serviced Apartments
City Edge Apartment Hotel East Melbourne

Family Friendly Hotels in Collingwood:
Ovolo Laneways
City Limits Serviced Apartments
Mantra on Jolimont

Affordable Luxury Hotels in Collingwood:
Park Hyatt Melbourne
Pullman Melbourne on the Park
The Hotel Windsor

Fitzroy – Best neighbourhood to stay in Melbourne

Centered on Brunswick Street, just north of the CBD, Fitzroy is the best neighborhood to stay in Melbourne for vintage shopping and alternative anything. This area is popular with students as it is one of the artistic and cultural hubs of Melbourne. Street art is all over Fitzroy, as are dining options for every taste and budget range. On the weekends, don’t miss the Rose Street Artist’s Market, with handmade food, fashion and accessories for sale.

Best Places to Stay in Fitzroy

Budget Hotels in Fitzroy:
City Centre Budget Hotel
Quest Gordon Place

Mid-Range Hotels in Fitzroy:
The Crossley Hotel
Oaks on Lonsdale
Quest Royal Gardens

Family Friendly Hotels in Fitzroy:
Grand Chancellor Melbourne
Punthill Little Bourke
Paramount Serviced Apartments
Mantra on the Park

Affordable Luxury Hotels in Fitzroy:
Park Hyatt Melbourne
Melbourne Marriott Hotel
Stamford Plaza Melbourne

St. Kilda – Where to stay in Melbourne with family

St. Kilda is a bohemian beach suburb just 6 kilometers from downtown. With a laidback vibe, St. Kilda is perfect for those looking to relax on holiday and the best suburbs for families in Melbourne as there are plenty of things for the kids to do. Visit Australia’s oldest amusement park, Luna Park, stroll the Esplanade Market for jewelry, photography, artwork, and more.

The 19th century Sea Baths have Australia’s only salt-water pool, plus a spa pool and steam room. St. Kilda has a ton of restaurants to choose from as well, with seafood featuring heavily on the menus. St. Kilda is also one of the best places to stay in Melbourne for couples, it has super chilled vibes!

Best Places to Stay in St Kilda

Cheapest Backpacking Hostels in St Kilda:
Back of Chapel Backpackers

Budget Hotels in St Kilda:
Como Court by Crest

Mid-Range Hotels in St Kilda:
Mercure Melbourne Albert Park
Pullman Melbourne Albert Park
Park Regis Griffin Suites

Family Friendly Hotels in St Kilda:
Crest on Park
Mantra St Kilda Road
Bayview On The Park

Affordable Luxury Hotels in St Kilda:
Albert Road Serviced Apartments

OR use the below search box to find a hotel we haven’t suggested above:

If you’d like to save it for later, please save it to Pinterest.