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Melbourne is a sprawling city with numerous suburbs that you could stay in, many with a unique character of their own. Don't assume that the best place to stay is in the center of the city. Beachside suburbs like St Kilda , or hipster areas like Fitzroy offer good quality budget accommodation in charming surrounds.

Inner suburbs are within 30 minutes of the CBD by public transport and often that distance can even be walked. Here are some of the most popular areas where you will find good budget options.

St Kilda

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.

North Melbourne

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.


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.

Fitzroy and Collingwood.

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.

Outer suburbs

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.

For more information about Melbourne, have a look at our travel guide, created by members of Travellerspoint.

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x The average starting price for a place to stay in Melbourne is £100 per night.

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City Centre Budget Hotel

22-30 Little Collins St

Excellent 92%
Free WiFi
Budget From £44 per night
Peter52p great place to stay right in the city centre car parking next door at set price for one exit if it is one hour or one week close to china town next street friendly staff and very helpfull

Oaks on William

350 William Street

Excellent 90%
Air Conditioning
Budget From £75 per night

Landing Pads Richmond

151-153 Hoddle Street Richmond

Awesome 89%
Free WiFi
Budget From £16 per night

The Nunnery

116 Nicholson Street Fitzroy

Awesome 86%
Free Breakfast
Budget From £21 per night

Space Hotel

380 Russell Street

Awesome 85%
Swimming Pool
Air Conditioning
Budget From £44 per night

Tram Stop 14 Backpackers

151-153 Brunswick Street Fitzroy

Awesome 85%
Free WiFi
Budget From £18 per night

Melbourne Metro YHA

78 Howard Street North Melbourne

Great 82%
Free WiFi
Budget From £17 per night

ibis Melbourne Little Bourke St

600 Little Bourke Street

Great 80%
Air Conditioning
Budget From £64 per night

Oaks On Lonsdale

23 33 Lonsdale St

Great 80%
Air Conditioning
Budget From £75 per night

Mercure Melbourne Albert Park

63 Queens Road

Great 80%
Swimming Pool
Air Conditioning
Budget From £59 per night

City Limits Hotel

20 Little Bourke Street

Great 80%
Free Breakfast
Air Conditioning
Budget From £68 per night

Miami Hotel Melbourne

13 Hawke Street

Very Good 78%
Air Conditioning
Budget From £38 per night
Sander This is really a budget hotel, which happens to have a tiny kitchen on the second floor, and thus also can function as a hostel. As such, it unfortunately lacks all hostel atmosphere. If you book a private room, you will need to explicitly ask about that kitchen to have your room key recoded to provide access, as you won't find information about its existence anywhere. Staff is friendly enough, and the location is great (right next to Errol Street, for some great restaurant options), but WiFi is freakishly expensive. Definitely not bad, but know what you're getting.

Bev & Micks Backpackers - Turf Club Hotel

1 Flemington Road North Melbourne

Very Good 77%
Budget From £11 per night

Victoria Hotel Backpackers

380 Victoria Street Brunswick

Good 74%
Free WiFi
P24 Hour Reception
Budget From £16 per night

Mercure Welcome Melbourne

265 Little Bourke Street

Good 70%
Air Conditioning
Budget From £75 per night

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