Where to Stay in Melbourne: Best Areas + Hotels (By A Local)

I love Melbourne! As Australia's second biggest city after Sydney, it's the country's most cultural and artsy city. And undoubtedly, it's got the best coffee in all of Australia.

While making plans to travel to the capital of the state of Victoria, you wouldn’t be alone if you felt overwhelmed while trying to figure out where to stay in Melbourne, I certainly was before my first visit.

Living on the Gold Coast, I have today been many times to the city over the years and stayed all across it.

In this guide, I'll outline the best Melbourne neighborhoods from my own experience and tell you about the top hotels in the city.

Whether you’re looking for a 5-star hotel in Melbourne or a budget hotel in Melbourne, I've got you covered with choices across Southbank, trendy Fitzroy and Collingwood as well as the central Melbourne CBD.

The Best Areas to Stay in Melbourne: Best Neighborhoods

Here are some key areas to consider when choosing where to stay in Melbourne, each offering its own unique vibe and attractions.

• Central Business District (Melbourne CBD) and Docklands: Melbourne's heart, perfect for business travelers and anyone who likes to be centrally for easy access to key attractions.
• Southbank: Situated south of the CBD, the area of South Bank offers scenic river views, lots of modern towers, and proximity to entertainment venues, such as the Crown Casino and Melbourne Convention Centre.
• Fitzroy and Collingwood: Located north of the CBD, these two neighboring suburbs are known for their artistic and bohemian atmosphere, plenty of trendy bars, boutiques, and street art. Some parts are still kinda grungy but very up-and-coming!
• St. Kilda: A beachside suburb with a relaxing atmosphere a short tram ride from the CBD. St. Kilda is popular for its beach, Luna Park amusement park, and outdoor activities, including many festivals.
• Prahran and South Yarra: Found on the southeastern edge of the city, these areas offer upscale dining, and shopping, and are easily reachable via public transport.

1. Where to stay in Melbourne for your first-time visit: Southbank

There’s a lot to do in Southbank and of course, it is easily accessible from other parts of the city. In fact, you can get a pretty good slice of Melbourne’s culture by spending only a day or two in its proximity.

No wonder many consider Southbank the must-see neighbourhood for first-time travellers to Melbourne.

When it comes to hotels in Southbank, you have a lot of options to choose from. In fact, if you're searching for Melbourne hotel deals, you might be surprised to learn that this centrally located neighbourhood has accommodation options for almost all budgets.

Best area to stay for:

• First-time visitors
• Close to everything without being in the city centre
• Great views of the city skyline
• Business travellers as it's close to the convention center
• Accommodation for all budgets

The Best Hotels in Southbank

Best Luxury Hotel: The Langham

With a superb rating on almost all of the top online booking sites, it’s no wonder why this luxury accommodation in Melbourne. With an indoor pool, spa, and boutique-style décor, there’s simply no way to pass up the Langham if you want the best while staying in Southbank.

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Best Hotel for Casino Access: Crown Towers

Crown Towers has a lot to offer if you are looking for evening entertainment, in addition to luxury rooms, of course. As such, guests will have immediate access to restaurants, cinemas, nightclubs, bars, and shopping within the Crown Entertainment Complex.

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Best Hotel for Easy Access to Melbourne Convention Centre: Pan Pacific

The Pan Pacific is also an excellent option when it comes to 4-star hotels in Melbourne. Located near the city’s convention centre and the Crown Casino, this hotel is particularly popular with anyone who wants to stay near where they will spend most of your time in the city.

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Best Luxury Apartments: Shadow Play by Peppers

Shadow Play by Peppers represent modern apartment options in Southbank. This hotel prides itself on taking care of its guests from the minute they walk in the door, including free Wi-Fi, an outdoor pool, and a buffet-style breakfast.

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Best Mid-Range Apartments in Southbank: Oaks Southbank Suites

If you are looking for serviced apartment-style accommodations in Melbourne to be able to relax comfortably in Southbank, the Oaks Southbank. I actually really liked my stay at these apartments, as we slept in a 2-bedroom overlooking the city and yet could walk anywhere around Southbank and the CBD.

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Best Things to Do in Southbank

For those interested in traditional and modern art, there’s no better place to spend an afternoon than the National Gallery of Victoria (NGV), located in the Southbank neighbourhood. As a world-class art gallery, you can expect to see a great selection of internationally known and local creators when you visit.

I like taking a walk along the picturesque Southbank Promenade overlooking the Yarra River, which is lined with cafes and restaurants, so you can just take a pick.

I love stopping in at Ponyfish Island. Named for the mythical inhabitant of the Yarra River, Ponyfish Island is only accessible from a single stairway coming down from the connecting bridge between South Bank and the CBD. From this special little island, you’ll be able to take in the views of the Southbank and the Yarra River.

If you want to see all the sights at once, travel up to Skydeck 88, located on the 88th floor of the Eureka Tower. As the highest public point in the Southern Hemisphere, Skydeck 88 gives you a 360-degree view of this wonderful city almost any day of the week. While it’s no longer the tallest building in Melbourne since topping out of Australia 108, Eureka Tower remains unbeatable due to being publicly accessible.

Buy your tickets to the Eureka Skydeck 88 online with easy and flexible cancellation up to 24 hours before here.

2. Where to Stay in Melbourne for a Central Location and Easy Access to Everything: Melbourne CBD and Docklands

If you’re traveling to Melbourne for a short weekend trip or for business, chances are that you’ll find yourself in the Central Business District or CBD. While staying in the CBD might sound like a matter of practicality, there’s actually a great deal to do here too.

The Docklands neighbourhood is located nearby, providing you with even more to do in central Melbourne and some good accommodation options if you don’t want to stay right between the skyscrapers.

Given the sheer number of visitors stopping in the CBD and Docklands, it’s no wonder that it is home to some of the city’s best and most luxurious hotels.

Best area to stay for:

• Easy access to all of the iconic city sights
• Best for shopping
• Idea base for first-time visitors
• Most central location
• Great luxury hotels
• Excellent public transport connections

Best Hotels in the Melbourne CBD and Docklands

Best Luxury Accommodations: Grand Hyatt Melbourne

The local Grand Hyatt tops many travelers’ lists. With picturesque views of the city and Yarra River, it’ll be easy to travel in comfort here after relaxing at the in-house fusion bar or indoor pool.

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Best Hotel near Hosier Lane: The Westin Melbourne

Another top option is The Westin Melbourne, which is tailor-made for travelers who enjoy special amenities like a lap pool, sauna, and steam room. Every room includes a 42-inch TV as well as tea and coffee-making facilities and an en-suite bathroom with a separate bath and shower.

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Best Affordable Luxury: Stamford Plaza

Given its location near many of the best sights and eateries in the CBD, the Stamford Plaza may also be a great pick for business travelers, who want to take in the city while on a short visit.

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Best Boutique Hotels in Melbourne CBD:

Zagame’s House: A 5-star boutique hotel located near Melbourne Central Station.

voco Melbourne: I recently stayed at this contemporary hotel situated in the heart of Melbourne's CBD. The rooms are modern and comfortable and the views of the city are unbeatable. Tip: Request a higher floor!

QT Melbourne: A close second in this category thanks to its undeniably sleek inner décor and central CBD location.

Ovolo Laneways: I loved my stay at this hotel near Chinatown on the edge of the CBD. Business and leisure travelers alike will appreciate the amenities, which include blackout curtains, free high-speed internet, and a free minibar in every room.

Best Budget Accommodation in Melbourne CBD

Space Hotel: This hotel has a great rooftop terrace, private cinema and is a short 5-minute walk from Melbourne Central Station. Every room here is air-conditioned, so you can enjoy Melbourne’s warm summer nights in comfort.

Best Things to Do in Melbourne CBD

If this is your first time visiting Melbourne, you have to visit the Queen Victoria Market. It's a little touristy, yet prime location to pick up a quick bite to eat as well as take in a healthy serving of local artistry. During the summer (December to February), this location hosts a specialized night market that includes seasonal food and entertainment.

Even at other times of the year, QVM is worth exploring with a food tour, which you can book online.

If you like high-end shopping, Bourke Street Mall is your destination.

Another place that can't be missed on your Melbourne itinerary is Federation Square, an iconic cultural precinct with museums, galleries, and events year-round. Opposite, you'll spot Flinders Street Station, which is likely Melbourne's most famous landmark.

From here, it's an easy walk to Degraves Street and Hosier Lane, Melbourne's famous laneways with their street art, little cafes, and hidden gems.

The Old Melbourne Gaol is also located in the CBD, allowing locals and tourists alike to step back in time and walk through one of the nation’s oldest and most historic prisons. Here, Australian folk hero Ned Kelly was imprisoned and put to death after his legendary stretch on the run. The former prison offers tours that are sure to delight history buffs.

I recommend stopping at the Docklands neighbourhood next to the CBD at sunset or in the evening to really see the city and its surroundings glow. It's also got some great waterfront dining spots!

3. Where to Stay in Melbourne for nightlife & hipster vibes: Fitzroy and Collingwood

Fitzroy's iconic Brunswick Street is a hub for night owls, with lots of hip bars, vintage shops, and artsy cafes. If you're in the area on the weekend, make sure to visit The Rose Street Artists' Market, so cute!

Collingwood, which is the suburb next door, has a mix of old-school pubs and modern cocktail bars. I also really liked visiting Stomping Ground Brewery & Beer Hall for lunch on a weekend. After that, don't miss to get a scoop of delicious ice cream at Piccolina Gelateria on Smith Street.

In addition to Fitzroy and Collingwood being the best places to experience a night out, both neighborhoods are also rich in cultural experiences, from street art walks to unique boutiques, local markets and plenty of hidden gems.

Best area to stay for:

• Trendy bars and nightlife
• Bohemian hipster districts
• Boutique shopping
• Creative and artistic atmosphere
• Weekend markets

The Best Hotels in Fitzroy and Collingwood

Best Designer Hotel: Veriu Collingwood

A boutique hotel located in the vibrant Collingwood neighborhood. Sleep in stylish and modern rooms with unique design elements.

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Best 4-Star Hotel: lyf Collingwood Melbourne

This accommodation option in Collingwood offers simple yet stylich and clean rooms with complimentary bikes, private parking, and a shared lounge area.

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Best Apartments Overall: Tyrian Serviced Apartments

There apartments located in Fitzroy are among the most popular on this front, providing key amenities, including modern décor and TVs.

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Best Fully-Equipped Apartments: Quest Collingwood

Stay in this contemporary serviced apartment hotel situated in trendy Collingwood. Spacious and fully-equipped apartments with modern amenities for short or long stays.

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Best Budget Dorms: The Nunnery Accommodation

Backpackers will be able to stay in the Fitzroy neighbourhood as well, at the Nunnery Accommodation. Despite its name, this place is homely, providing access to a shared kitchen and free luggage storage.

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Best Things to Do in Fitzroz and Collingwood

The Fitzroy Gardens are among the most beautiful sights you’ll see in the city. Originally created in 1848, this botanical reserve features many pathways lined with magnificent Elm trees as well as many of Australia’s most vivid native species.

Tours are offered at various points on sight including Cook’s Cottage, which was formerly home to the favoured Captain James Cook’s parents before it was transported from Yorkshire, England in the 1930s.

When it comes to seeing Melbourne after dark, though, you’d be hard-pressed to miss one of Fitzroy’s numerous bars and pubs.

There are almost too many to name, but I’ll still give my commendation to the Black Pearl, Polly Bar, and The Everleigh. Also, if you’re looking to taste the local spirits, you must stop into Bad Frankie, a hip bar that features a menu of boutique Australian spirits.

4. Where to Stay in Melbourne Near the Beach & for Families: St. Kilda

Melbourne has lovely warm summers, so you can expect its beaches to always be filled with families looking for some fun in the sun. This is especially true in the St. Kilda neighbourhood!

St. Kilda Beach is also a short tram ride away from the Melbourne CBD and features a variety of unique bars and restaurants across its iconic pier and breakwater with stunning views back to the skyline.

This neighborhood is definitely one of the best places for finding family accommodation in Melbourne. If you're renting a car in Melbourne to explore the surroundings, it's good to know that many hotels come with parking options.

There are also quite a few backpackers around St. Kilda, which is great if you're looking to stay on a tighter budget.

Best area to stay for:

• Families
• Staying near the beach
• Still pretty easy access into the Melbourne city
• Relaxation
• Budget backpacker accommodation

The Best Hotels in St. Kilda

The Prince Hotel

A boutique hotel featureing stylish and elegant rooms with modern amenities, offering a comfortable and luxurious stay experience.

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Quest St Kilda Bayside

Speaking of the beach, the Quest St Kilda Bayside is even closer to the sea and sand, that is, only a five-minute walk away. This refurbished apartment-style facility will also allow you to make the most of your warm summer days with their onsite BBQ equipment and heated pool.

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Crest on Park

Crest on Park provides a similar apartment-style atmosphere but with an even more cozy atmosphere, air-conditioning, free Wi-Fi and free parking. From the apartments, it's only 150 m from the St Kilda Sea Baths, heated swimming pool, spa and fitness, which you'll have free access to as a guest.

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Saint Kilda Beach Hotel

If you're looking for an affordable hotel in Melbourne that’s close to the beach, check out Saint Kilda Beach Hotel.

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Nomads St Kilda

Hostel fans can keep themselves close to the beach without blowing their budget. The rooms are modern and clean with en-suite bathrooms, lockers and air-conditioning.

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Best Things to Do in St. Kilda

The St. Kilda neighbourhood features a variety of interesting restaurants and cafes with amazing sweets. Le Bon Continental Cake Shop, for example, will open your eyes to the creativity of some of Melbourne’s most skilled bakers.

Lau’s Family Kitchen, on the other hand, will give you a taste of the rich influence East Asian immigrants have had on Melbourne’s pallet.

While you can also get so-called “Aussie” food almost anywhere in Melbourne, locals will agree that the Local Taphouse in St. Kilda does it best. Here you’ll be able to sip some of the nation’s best beers and spirits while also enjoying a bite, including one of their numerous weekly food specials.

Visit St. Kilda Beach to take in some rays or leap into the salty waters of Port Phillip Bay.

5. Where to Stay in Melbourne for Foodies & Boutique Shopping: Prahran and South Yarra

Shopping and tasting the local cuisine are often high up on my to-do list when visiting a new city. While there are great spots for both across Melbourne City, the neighbourhoods of Prahran and South Yarra have a little something extra to provide short- and long-term visitors.

Prahran and South Yarra are no strangers to great hotel accommodations. In fact, these neighbourhoods have some of the best luxury and long-stay apartments in Melbourne.

Best area to stay for:

• Luxury stays
• Off the beaten path
• Longer stays
• Living like a local

The Best Hotels in Prahran and South Yarra

Art Series – The Cullen

Art Series – The Cullen provides a positive 5-star experience that’s within walking distance of Chapel Street. They even have an in-house bistro and dumpling bar. Yum!

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The Como Melbourne

The Como provides a similarly high degree of quality while also providing ready access to Melbourne Park Tennis Centre, Federation Square and The Arts Centre from South Yarra.

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SoYa Apartment Hotel

The SoYa Apartment Hotel is a clear favourite in this category, with reviewers online raving about its technologically-connected rooms which include Google Mini, free Spotify and Netflix. All come with fully equipped kitchens, and air-conditioning and are only 100 meters from South Yarra Train Station.

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Ovolo South Yarra

I love staying at Ovolo Hotels. And the property in South Yarra is no exception. It's got chic and contemporary rooms with thoughtful amenities, located in the stylish South Yarra neighborhood

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Quest Prahran

Quest Prahran features simple rooms that will give you and your family plenty of room to spread out and enjoy each other’s company. Choose between 1, 2 and 3-bedroom apartments, depending on how much space you need. Chapel Street is just a 2-minute walk away.

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Best Things to Do in Prahran and South Yarra

The Prahran Market built in 1864 is a premier stop for foodies. Find piles of local fruits and vegetables, as well as meat, seafood, and cheeses only found in Australia.

Visit David’s Restaurant, serving up dishes inspired by the alleyways of Shanghai. Also try The Smith Prahran, The Flying Duck Hotel or Three Monkeys for drinks.

As for shopping, you’ll have so many options to pick from once you hit the streets of South Yarra. In fact, up and down Chapel Street, which is the main street, you’ll find a bunch of small boutiques and shops selling locally-made goods.

Toorak Road is also a great spot to shop, with over 300 specialty stores, cafes and restaurants on this stretch alone, you truly won't get bored.

Where to Stay in Melbourne – Frequently Asked Questions

☀️ What's the best time to visit Melbourne?

Melbourne is one of the most wonderful places to visit in Australia, regardless of the season. However, if you prefer milder weather, spring and summer are ideal times to visit, offering pleasant temperatures. Autumn is also nice when the city is covered in beautiful autumn foliage. It's a great time to enjoy outdoor events, cozy cafes, and cultural activities without the summer crowds.

❓ Is staying in Southbank or Melbourne CBD better?

It depends! Southbank offers scenic river views, proximity to cultural attractions like the Arts Centre, and a relaxed vibe. In contrast, Melbourne CBD provides easy access to everything from shopping to dining and iconic landmarks like Federation Square.

⭐ Where is the trendiest area in Melbourne?

The trendiest area in Melbourne is often considered to be Fitzroy. Known for its bohemian atmosphere, trendy bars, artistic flair, and individual boutiques, making it a hotspot for locals and visitors alike. Other trendy areas in Melbourne include Collingwood as well as Brunswick.

Where to Stay in Melbourne – Final Words

Wrapping up my extensive guide to where to stay in Melbourne, it's clear that this city has a wealth of options beyond what I've covered here. With new hotels and experiences constantly popping up, the choices are abundant.

Whether you prefer to stay in the busy city centre, the artistic vibes of Fitzroy and Collingwood, the beachside charm of St. Kilda, or the upscale neighbourhood of South Yarra and Prahran, Melbourne caters to every taste. No matter where you stay, you'll find accommodations to suit your needs, making it easy to explore this dynamic city solo, with your other half or family.

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