Melbourne is a sprawling city with numerous suburbs that you could stay in, many with a unique character of their own. The centre of the city is naturally the most popular area to stay as it has most of the popular attractions within walking distance. But tastes differ. Beachside suburbs like St Kilda, or hipster areas like Fitzroy offer good quality budget accommodation in charming surrounds.
Inner suburbs are within 20 minutes of the CBD by public transport and often that distance can even be walked.
Within the centre of the city, you can make use of Melbourne's free tram zone. This includes the CBD, Docklands and parts of North Melbourne.
A few options are available in the outer suburbs, particularly motels. If you have a car with you, this can be a good choice because it will mean less money spent on parking. The trip into the city to see things will be a bit longer though, up to an hour if you're staying a long way out. Consider carefully what the public transport options are when you stay in the outer suburbs. It's not ideal to have to drive into the city for the day, since parking can be exorbitant.
While many of the options in the CBD are mid-range and luxury hotels, there are a few hostels and cheap(ish) hotels that are incredibly popular. If you want to explore the laneways and bars to the fullest, then being in the CBD is perfect, because you will be able to stumble back to your bed after a big night out. Victoria Market is still just a walk away, as are sporting grounds like the Vodafone Arena, MCG, Etihad Stadium and AAMI stadium.
There is no shortage of things to do in the CBD. Enjoy walks along the Yarra, strolling through the Royal Botanical Gardens or getting a good look over it all at Eureka Tower. Consider also that if it's going to cost you a few dollars extra to stay in the CBD, you will save a few dollars by not having to catch a tram in. There's also a free tram that circles the CBD, allowing you to get around very cheaply.
There is no shortage of things to do in the CBD. Enjoy walks along the Yarra, strolling through the Royal Botanical Gardens or getting a good look over it all at Eureka Tower. Consider also that if it's going to cost you a few dollars extra to stay in the CBD, you will save a few dollars by not having to catch a tram in. There's also a free tram that circles the CBD, allowing you to get around very cheaply
Just south of the CBD on the other side of the Yarra, you will find Southbank. This is home to Melbourne's Arts Precinct which includes the wonderful National Gallery of Victoria (International) , the Australian Centre for Contemporary Art, the Arts Centre and various other important cultural institutions. It is also home to Crown Casino and all the entertainment that goes with that.
The waterfront walk is popular for visitors and locals alike and there are beautiful gardens to stroll through just across St Kilda Rd. There is ample accommodation in this part of town, in particular apartments in the many skyscrapers that have popped up in the last couple of decades. Melbourne's tallest skyscrapers are on this side of the river including Eureka Tower and Australia 108, the two tallest buildings in Australia.
Southbank is an ideal location for any visitor to Australia and particularly for those with an interest in the arts.
Within walking distance of the CBD, North Melbourne provides a good range of cheap hotels and hostels. This is within easy walking distance of the CBD. Multiple trams also head this way, so you should have no trouble getting into the center when you need to. The main attraction in North Melbourne is the Victoria Market, where you will be able to save even more money by buying cheap fresh food and souvenirs for family back home. It's a great place to visit for lunch, coffee or just to have a browse around.
A traditional beachside tourist resort area, St Kilda has become a first choice for backpackers visiting the city. It's about 20 minutes out of the CBD by tram and unfortunately no train lines go here. The great attraction of staying in St Kilda is that there is a beach on your doorstep and a great walking trail along the foreshore. There are also a large number of restaurants, bars and pubs along the two main strips of Acland Street and Fitzroy Street. Luna Park, the city's iconic amusement park is also located in St Kilda.
St Kilda is a hub for backpackers in particular and there are a range of great hostels in the area, including Melbourne's absolute cheapest accommodation option.
Fitzroy and neighbouring Collingwood are great places to be if you enjoy somewhat more bohemian surrounds. It's still within walking distance of the city and a few tram lines run through it making access easy. Nearby you will find the Melbourne Museum and Royal Exhibition Building. A short walk away is also Carlton, where you can find an abundance of Italian restaurants and cafés.
Attractions in Fitzroy include the Centre for Contemporary Photography and a host of fantastic bars and pubs.
The Docklands is a recently developed area of Melbourne that has a lot of apartment accommodation on offer in particular. Unless you happen to be visiting to see a sports match at Marvel Stadium, it is a bit removed from the city's main attractions and activities. The Docklands are however within Melbourne's free tram zone so it won't cost you anything other than a little time to get into the CBD.
Being on the water is appealing, but it does have its downside - Docklands has a reputation for being very windy.
Attractions in the Docklands include the Melbourne Star observation wheel, ArtVo and the O'Brien Ice House where you can get a little ice skating in.
If you are in town for a bit of retail therapy than you can't really go past South Yarra. Chapel Street is packed with designer boutiques to keep you browsing for hours. And when you work up a thirst, there is an ample supply of great cafés, bars and restaurants to keep you nourished.
It is only a short tram ride to Melbourne's centre or St Kilda beach.
Attractions in South Yarra include the Jam Factory
You will find Richmond to the east of Melbourne. It has great access to the city and is a popular place to stay particularly if you are planning on attending one of the many sporting events that is hosted at the Melbourne Cricket Ground or tennis precinct. There is a great selection of restaurants and cafés around the area that is sure to make your stay in this part of the city very enjoyable. Most of the accommodation in this area is apartments and vacation rentals.
Attractions in Richmond include The Corner Hotel (for live music) and a host of great dining options
Carlton lies just to the north of the CBD and is another great inner suburb to base yourself in. Depending on your exact location in Carlton you could walk into the city from here. There are also plenty of world class attractions in Carlton itself. The Royal Exhibition Building is a UNESCO World Heritage listed site, being one of the world's last major 19th-century exhibition buildings. Right next door is Melbourne Museum which provides a fantastic permanent exhibit of typical museum fare and some excellent rotating exhibits as well. It is very popular with kids especially.
After a bit of culture, wander down to Lygon Street. This is Melbourne's Little Italy. You will find no shortage of great Italian food, cool cafés and swanky bars. If you like art house movies, the Nova cinema will deliver for you. Or head to one of Melbourne's most popular bookstores - Readings - to pick up a good book for your downtime.
Accommodation is not in huge supply in Carlton, but there are certainly a few hotels in the area as well as some apartments and short term private rentals.
Attractions in Carlton include the Royal Exhibition Building and the Melbourne Museum
Wherever you choose to stay in Melbourne, you are bound to have a fantastic time in this wonderful city.
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@Peter is the founder of Travellerspoint and lives on the outskirts of Melbourne.
Last updated 20 Feb 2025