Jess Bergin

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Where to Stay in Melbourne

Jessica Bergin

Wondering where to stay in Melbourne, Australia? The Victorian capital is fringed with funky boutique hotels, luxury resorts and bustling backpacker-filled hostels. Whether you’re tied to a strict budget or willing to splurge on something high-end, this in-depth guide has everything you need to know about the best places to stay.

Hipster havens, neon-lit corners and restaurant-lined streets give the city its indisputable appeal. With foodies, fashionistas and everyone else in between, there’s a magnificent mix of people living here in Melbourne.

This is one of the most multicultural cities in the world, and that rich tapestry can be found in the culture, cuisine and colourful events.

The city celebrates everything weird, wonderful and wacky, from the alternative fashion scene in Fitzroy to the non-stop nightlife in Prahran. You can taste Asian food in Chinatown, watch a theatre performance in the CBD or feel the rush at Crown Casino in Southbank.

Whether you’re travelling to Melbourne for sports, cultural events, food or something else that’s on the never-ending list of things to do, you certainly won’t be bored. And if you want to mix up your sightseeing, simply escape the city on one of these top-rated day trips.

See the highlights with this 2-day itinerary or take it slow with this guide on how to travel to Melbourne.

Melbourne has everything from buzzing districts to sunny seaside towns, so whatever you decide to do, you won’t be disappointed. Each corner of Victoria’s capital is carved with something new, and discovering the sites is ever-exciting.

If you’re planning a trip to Victoria, here are the best places to stay in Melbourne, Australia. Oh yeah, and it’s all coming to you from a local’s perspective. If you want to see more visual content and insider travel tips, check out my YouTube channel for all things Melbourne. And beyond!

11 Best Places to Stay in Melbourne

I’ve been living in Melbourne for quite some time now, and I feel like I know the city well. I’ve lived in a handful of different suburbs, some high-end and others, well, on the contrary. I loved my time in places like Prahran and Windsor, well I feel more settled now that I’m in Mordialloc. The truth is, every inch of this city caters to a different crowd. And it really is about finding the right fit for you.

Victoria’s capital is home to character-packed districts and laid-back towns, each sprinkling a little bit of flavour into the city. Here's a comprehensive guide to the best places to stay in Melbourne. Or as the locals like to call it, Melbs.

Here’s what we cover:

  1. Melbourne CBD

  2. South Yarra

  3. Carlton

  4. Richmond

  5. St Kilda

  6. Windsor/Prahran

  7. Fitzroy

  8. Williamstown

  9. Southbank

  10. Brunswick

  11. Docklands

Melbourne CBD

Let’s kick off this list with one of my favourite places to stay in Melbourne city. The Central Business District, also known as the CBD, is well-known for its wealth of attractions, iconic laneways and hidden gems.

The CBD is very popular with travellers as it’s centred in the heart of the city. This diverse district is brimming with green gardens, trendy restaurants and sprawling shops in places like the Bourke Street Mall. If you choose to stay in Melbourne’s CBD, you’ll have great access to the public transport system. Getting around Melbourne literally couldn’t be easier from this location, no matter whether you want to take a day trip to the suburbs or visit places like the Great Ocean Road.

The CBD is home to an abundance of ritzy lodgings, budget hotels and serviced apartments. Most accommodation options are located in soaring skyscrapers, so you can spend a little extra and score amazing city views.

Top Things to do in Melbourne CBD:

  • See the glass dome at the State Library of Victoria

  • Go shopping in the Bourke Street Mall or Melbourne Central

  • Sip specialty coffee on Degraves Street

  • Admire the art in the National Gallery of Victoria (NGV)

  • Take a cruise down the Yarra River

  • Lock lips with international eats at the Queen Victoria Market

Best Places to Stay in Melbourne CBD:

South Yarra

If you’re wondering about where to stay in Melbourne, Australia, South Yarra could be the best fit for you.

This upmarket suburb oozes with class, from the art deco apartments and luxurious hotels and beautiful mansions. Whether you want to socialise in the glitzy cocktail bars, indulge in gourmet gastronomy experiences or give your credit card a workout in the shops on Chapel Street, this is a place that’s perfect for dabbling in the finer things in life. If you love to splurge, definitely make South Yarra the base for your accommodation in Melbourne.

Top Things to do in South Yarra:

  • Shop ‘til you drop on Chapel Street and Toorak Road

  • Taste gourmet gastronomy in the restaurant scene

  • Stroll around the Royal Botanic Gardens

  • See the sunset from the Shrine of Remembrance

Best Places to Stay in South Yarra:

Carlton

If you’re looking for places to stay in Melbourne near the city centre, Carlton is located close to the action. But yet, it feels like you’re worlds away.

Coined for its iconic Italian flair, this suburb is dotted with dazzling stores, leafy green parks and the restaurant-lined Lygon Street precinct. Locally referred to as ‘Little Italy’, this lively neighbourhood mixes museums, galleries and casual pizzerias.

From the University of Melbourne the the fancy cafes of Elgin Street, there’s plenty of things to see and do. And when you’re sightseeing is done for the day, lock lips with Italian wine and pasta in one of the many old-school trattorias. If you’re travelling to Melbourne with your family, this a wonderful spot with boutique hotels and a mix of accommodation.

Top Things to do in Carlton:

  • Taste authentic Italian cuisine on Lygon Street

  • Watch a film at La Mama Theatre

  • Visit the 19th-century Royal Exhibition Building

  • Wander through the Carlton Gardens

  • Admire the art and artefacts in the Melbourne Museum

Best Places to Stay in Carlton:

Richmond

Richmond is replete with famous live music venues and buzzing bars. It’s character-packed, to the max!

With historic buildings, factory outlets and bustling sports venues, this is a must-see when visiting Melbourne. Shop til you drop on Church Street, get a taste of Melbourne’s ‘Little Saigon’ on Victoria Street and get on the happy hour specials in one of the many bars.

Sitting just east of the CBD, it’s the best spot if you’re seeing the sports events at the Melbourne Cricket Ground (MCG). If you visit in January and are wondering where to stay in Melbourne for Aussie Open, Richmond is your best bet.

Top Things to do in Richmond:

  • Give your credit card a workout shopping on Bridge Street

  • Taste Asian-inspired cuisine on Victoria Street

  • Catch a famous AFL football match at the MCG

  • See a live gig at the Corner Hotel

Best Places to Stay in Richmond:

St Kilda

If you’re thinking about where to stay in Melbourne with kids, this is it! St Kilda boasts the perfect mix of sun, sea and sightseeing. Located only 6 km from the city centre, it’s easy to escape the buzz.

With a fascinating fusion of big-city vibes and seaside charm, St Kilda will keep every member of the gang content. Get your thrills in the iconic theme park, take a dip in the sea baths and watch the sun go down as you dine in the waterfront district.

St Kilda is also very popular among backpackers and budget travellers. In this suburb, you’ll find mainly guesthouses, hostels and budget-friendly apartments.

Top Things to do in St Kilda:

  • Scream your lungs out on a ride at Luna Park

  • Sip happy hour specials on one of the terrace-lined streets

  • Soak up the sun in O’Donnell Gardens

  • Swim or windsurf at St Kilda Beach

  • See little penguins at the St Kilda Breakwater

Best Places to Stay in St Kilda:

Windsor & Prahran

When people ask me where to stay in Melbourne, this is my number one recommendation.

Crowned as the bohemian capital of Melbourne, Prahran and Windsor are home to a huge haul of highlights.

Dotted with fresh food markets, rowdy nightlife and an endless list of vintage stores, this spot definitely appeals to a younger crowd. You’ll find a combination of backpacker hostels and stylish hotels in these two neighbourhoods.

Top Things to do in Windsor/Prahran:

  • Shop at the best vintage stores in Melbourne. If you only have time for one, don’t miss Official Vintage

  • Lock lips with $5 pizzas on Wednesday evenings at Lucky Coq

  • Shop for fresh produce and great coffee at the Prahran Market

  • Bar-hop along Chapel Street

  • See a theatre performance at Chapel Off Chapel

Best Places to Stay in Windsor/Prahran:

Fitzroy

Fitzroy is a contender for one of the coolest places in the city. Drenched in bohemian vibes aplenty, this is one of the best places to stay in Melbourne.

Everything weird and wacky comes together here, and somehow, it all works perfectly. Fitzroy is lined with vintage shops, unique bookstores and a young-loving, free-living kind of vibe. With its variety of vegan and vegetarian restaurants, Fitzroy is one of the top choices for alternative travellers.

This artsy inner-city suburb is scattered with eclectic bars and popular restaurants, making it the ultimate hang-out spot for the weekends. Wind through the narrow backstreets, drink at the corner pubs and get creative on Gertrude Street.

Top Things to do in Fitzroy:

  • Relish the cuisine on Brunswick Street

  • Dip in and out of the vintage stores

  • Appreciate the art-filled alleyways

  • Shop for quirky finds at the Rose Street Artists’ Market

  • Get refreshed at the Fitzroy Swimming Pool

  • Enjoy a picnic in the Edinburgh Gardens

Best Places to Stay in Fitzroy:

Williamstown

Williamstown is Melbourne’s original port settlement and still remains well-connected with the CBD. With a significant historical background, this area offers plenty of accommodation on the waterfront.

From the lush green parks and maritime museums to the convict-built Nelson Place, you can spot plenty of colonial landmarks like the Timeball Tower and Fort Gellibrand. This area is ideal for families and couples and you can spend your days exploring the southern shore’s peaceful parks and wetlands.

Top Things to do in Williamstown:

  • Wander astray in the Williamstown Botanic Gardens

  • Watch the sunset from Gem Pier

  • Sun-bake at Williamstown Beach

  • Shop up a storm on Ferguson Street or Douglas Parade

Best Places to Stay in Williamstown:

Southbank

If you’re wondering about where to stay in Melbourne, Southbank is a popular choice for many. Anchoring the south end of the rolling Yarra River, this area oozes waterfront sophistication.

Home to fine dining restaurants and big-name landmarks like the Crown Casino Complex and Arts Centre, you’ll be entertained here for days on end. Among the food courts, craft-beer sheds, nightclubs and shops, there’s a big mix of luxury hotels and high-end apartments.

Top Things to do in Southbank:

  • Get cultured at the Malthouse Theatre

  • Feel the buzz inside Crown Casino

  • See the city from above at the Melbourne Skydeck

  • Check out the Arts Centre

  • Dine along the Southbank waterfront

  • Catch the best views of the city skyline from the deck outside Hamer Hall

Best Places to Stay in Southbank:

Brunswick

Melbourne is home to quite a few hipster havens, but Brunswick triumphs the scene. This suburb shines a spotlight on live music venues, art galleries and delectable cuisine.

After sightseeing in the city centre, you can enjoy the diverse shopping and culinary finds in Brunswick. Taste Middle Eastern cuisine on Sydney Road, spend an afternoon in a craft beer bar or dip in and out of the quirky art galleries. This industrial suburb was built back in the mid-1800s, and a lot of the old buildings have been creatively refurbished.

Top Things to do in Brunswick:

  • Shop on the longest shopping strip in the southern hemisphere at Sydney Road

  • Go for drinks on Lygon Street

  • Get inspired by the array of art galleries

  • Listen to live music at local gig venues

Best Places to Stay in Brunswick:

Docklands

Last but not least! If you’re thinking about where to stay in Melbourne for shopping, the Docklands is a popular place for many travellers.

Fringed with upmarket apartments, soaring skyscrapers and prevalent hotels, this district is bursting with city charm. Take the tram to famous attractions, walk along the breezy waterfront, or take it up a notch on an evening river cruise. Admire the art sculptures and modern apartment buildings, and wander around the mural-lined pedestrianised plazas. If you love to splurge, don’t forget to stop by the open-air District Docklands to find high-end fashion and jewellery.

Top Things to do in Docklands:

  • Go ice-skating at the O’Brien Icehouse

  • Score bargains at DFO South Wharf

  • Watch a sports event or a show at Marvel Stadium

  • Escape on a day trip from Southern Cross Station

  • See it all from above at the Melbourne Star Observation Wheel

Best Places to Stay in Docklands:

Best Places to Stay in Melbourne

So, now you’re up to speed on the best places to stay in Melbourne, Australia. This city is brimming with bustling markets, panoramic rooftop bars and quirky eateries, making it appealing to almost every type of traveller. So, what are you waiting for? Get planning your Melbourne trip today!