Where to Stay in Melbourne 2026 | Best Areas + Hotel Map
Melbourne rewards exploration - the world's best coffee, hidden laneway bars, and a cultural scene rivaling any global city. Unlike Sydney, Melbourne's appeal lies in discovery rather than iconic landmarks. Stay in the CBD for laneway access or venture to Fitzroy and Collingwood for the creative heart. The excellent tram network makes anywhere accessible.
Editor's Pick for First-Timers
CBD or Fitzroy
CBD puts you in the laneway action with free trams. Fitzroy offers Melbourne's creative soul with excellent bars and cafés. Both are easily connected and capture what makes Melbourne special.
CBD
Fitzroy
South Yarra
St Kilda
Carlton
Southbank
Quick Guide: Best Areas
Things to Know
- • Docklands can feel empty and soulless - avoid unless for events
- • Frankston and outer suburbs are too far for tourist stays
- • Some St Kilda blocks around Fitzroy Street have drug activity
- • Hotels near Southern Cross can feel disconnected from action
Understanding Melbourne Geography
Melbourne's CBD sits in a grid pattern on the north bank of the Yarra River. Inner suburbs radiate outward - Carlton and Fitzroy north, South Yarra and Prahran south, St Kilda on the bay. Free trams operate within the CBD. The iconic laneways hide between the grid's main streets.
Accommodation Map
Check availability and prices across Booking.com, Vrbo, and more.
Best Neighborhoods in Melbourne
CBD / City Centre
Best for: Laneway bars, street art, Flinders Station, central transport hub
"Hidden bars and street art in a grid of laneways"
Pros
- Most central
- Best laneways
- Free trams
Cons
- Can feel corporate
- Expensive parking
- Quiet Sundays
Fitzroy
Best for: Hipster cafés, live music, vintage shops, Brunswick Street
"Melbourne's creative heartland with excellent bars and cafés"
Pros
- Best live music
- Authentic local
- Great cafés
Cons
- Some rough edges
- Limited hotels
- Noisy weekend nights
South Yarra / Prahran
Best for: Chapel Street shopping, Prahran Market, upscale dining, LGBTQ+ scene
"Fashionable inner-south with boutiques and brunch"
Pros
- Great shopping
- Near Botanic Gardens
- Excellent restaurants
Cons
- Expensive
- Traffic congestion
- Spread out
St Kilda
Best for: Beach, Luna Park, backpacker scene, sunset pier walks
"Beachside suburb with backpacker energy and famous pier"
Pros
- Beach access
- Budget hostels
- Great sunsets
Cons
- Some seedy areas
- Far from CBD
- Can feel worn
Carlton
Best for: Lygon Street Italian, university area, Melbourne Museum
"Little Italy meets university town"
Pros
- Great Italian food
- Near museum
- Walkable to CBD
Cons
- Some tourist traps
- Quiet at night
- Limited hotels
Southbank
Best for: Arts precinct, Crown Casino, Yarra River views, National Gallery
"Cultural precinct along the Yarra River"
Pros
- Near arts precinct
- River views
- Walk to CBD
Cons
- Corporate feel
- Casino crowds
- Expensive dining
Accommodation Budget in Melbourne
Budget
Hostels, budget hotels, shared facilities
Mid-Range
3-star hotels, boutique stays, great locations
Luxury
5-star hotels, suites, premium amenities
💡 Prices vary by season. Book 2-3 months ahead for best rates.
Our Top Hotel Picks
€ Best Budget Hotels
Space Hotel
CBD
Excellent CBD hostel with rooftop cinema, great common areas, and walking distance to all laneways.
The Nunnery
Fitzroy
Heritage guesthouse in converted nunnery with garden courtyard and Fitzroy's best location.
€€ Best Mid-Range Hotels
Ovolo Laneways
CBD
Boutique hotel in iconic laneway location with quirky design, free minibar, and excellent breakfast.
The Cullen
Prahran
Art hotel showcasing Adam Cullen's works with rooftop bar and Chapel Street location.
QT Melbourne
CBD
Industrial-chic design hotel with theatrical interiors, Pascale Bar, and Russell Street location.
€€€ Best Luxury Hotels
Park Hyatt Melbourne
CBD
Refined luxury overlooking St Patrick's Cathedral and Fitzroy Gardens with excellent spa.
Jackalope Hotel
Mornington Peninsula
Avant-garde wine country hotel with striking design, vineyard setting, and hatted restaurant (day trip/splurge).
✦ Unique & Boutique Stays
The Olsen
South Yarra
Art hotel featuring John Olsen's works with rooftop pool, Chapel Street location, and gallery atmosphere.
Smart Booking Tips for Melbourne
- 1 Book 3-4 months ahead for Australian Open (Jan), Melbourne Cup (Nov), Grand Prix (March)
- 2 Winter (June-August) offers 30% discounts but can be grey and rainy
- 3 Many hotels don't include breakfast - budget for excellent café culture
- 4 Weekend rates often cheaper than weekdays due to business travel
- 5 Consider apartments for stays over 4 nights - good value with kitchens
Why you can trust this guide
We built this guide using recent climate data, hotel price trends, and our own trips, so you can pick the right month without guesswork.
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More Melbourne Guides
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Historical climate averages to help you pick the best time to visit
Best Time to Visit
Month-by-month weather and seasonal tips
Things to Do
Top attractions and hidden gems
Itineraries
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Overview
Complete travel guide for Melbourne: top things to do, itineraries, and typical costs.