Melbourne is a city of trams, laneways and a large bay, with a centre that is easy to walk and a ring of inner suburbs that each have their own character. Visitors tend to spend their days between the central grid, the river, and the seaside and bohemian pockets just outside the centre.
For a visitor, the practical choice is between basing yourself in the central business district (CBD) or in one of the inner suburbs such as St Kilda, Fitzroy, South Melbourne or Windsor. This guide covers which areas suit which kind of trip, and what to expect at each price level.
Best areas to stay in Melbourne
1. CBD (central business district)
The CBD is the centre of the city, home to the main rail terminus at Flinders Street station and the regional rail and coach terminus at Southern Cross station. It is the most convenient base for seeing the city's landmarks and for moving around by tram, since the CBD sits at the heart of the tram network.
This area suits first-time visitors who want to be close to the sights and to transport links. It holds the widest choice of accommodation across all price levels, including most of the city's mid-range and splurge options, as well as a large share of the budget beds.
2. St Kilda
St Kilda is a seaside suburb and one of the two main areas for budget accommodation in Melbourne. It suits travellers who want a coastal base and a more relaxed setting than the centre.
It sits outside the CBD, so you should expect to use public transport to reach the central sights. It is a practical choice for budget travellers who do not mind being based away from the centre.
3. Fitzroy
Fitzroy is described as a bohemian area and is one of the popular budget options outside the CBD and St Kilda. It suits travellers who prefer a characterful inner-suburb base over the central grid.
As with the other inner suburbs, you will rely on public transport to connect with the centre and the main sights.
4. South Melbourne
South Melbourne is another of the popular budget areas outside the CBD and St Kilda. It suits visitors who want to be near the centre but not in it.
Its position just outside the CBD makes it a reasonable base for reaching the central sights while staying in a quieter setting.
5. Windsor
Windsor is listed among the popular budget options beyond the CBD and St Kilda. It suits budget travellers looking for an inner-suburb base.
Like the other suburbs here, it is outside the centre, so plan on using public transport for the main sights.
Where to stay on a budget, mid-range or splurge
- Budget: concentrated in the CBD and the seaside suburb of St Kilda, with further popular options in bohemian Fitzroy, South Melbourne and Windsor. From January to March, during international events such as the Australian Open in January and the Australian Grand Prix in late March, hostel accommodation is booked out and some hostels raise their prices, so book ahead.
- Mid-range: mostly found in the CBD, with options scattered throughout the suburbs.
- Splurge: the CBD remains the main area for this category.
Best area for a first visit
For a first visit, base yourself in the CBD. It puts you at the centre of the tram network and at the main rail and coach termini, which makes reaching the city's landmarks straightforward. It also has the widest range of accommodation across every price level, so you can match your budget without leaving the centre.
Frequently asked questions
Where is the budget accommodation in Melbourne?
Budget options are found mainly in the CBD and in the seaside suburb of St Kilda, with further popular choices in Fitzroy, South Melbourne and Windsor.
When should I book ahead for hostel accommodation?
From January to March, during international events such as the Australian Open in January and the Australian Grand Prix in late March, hostel accommodation is booked out and some hostels raise their prices. Book ahead for this period.
Where will I find mid-range and splurge accommodation?
Mid-range places are mostly in the CBD, with options scattered throughout the suburbs. The CBD remains the main area for splurge accommodation.
Which area is best if I want to be close to transport?
The CBD, where Flinders Street station and Southern Cross station are located and where the tram network is centred.
Compare live prices for your dates with the booking tools on this page before you decide.