Planning a trip to Melbourne? Finding the best area to stay in Melbourne will help you get the most out of your trip to the city, especially as Melbourne is famous for its dynamic and eclectic neighbourhoods. In this guide to the best areas to stay in Melbourne, I’ve included the best hotel and apartment options in each neighbourhood. Many of Melbourne’s trendy neighbourhoods outside the CBD have limited hotel options, so I’ve included a few of the best picks.

The best areas to stay in Melbourne include the Melbourne CBD, Carlton, Fitzroy, Richmond, Southbank and St Kilda, depending on the type of trip you’re planning. I’ve lived in Melbourne for nearly a decade, and love sharing the best of the city with my family, friends, and now, you!

Melbourne City (CBD)

Melbourne CBD is genuinely one of the best places to stay in Melbourne, especially for first time visitors. For international readers, CBD stands for Central Business District – AKA, the city centre or downtown. Melbourne has the most beautiful and lively CBD in Australia, which is an experience in itself. Explore the city’s famous laneways and street art, find hole in the wall coffee shops and enjoy the city’s beautiful and eclectic architecture. I recommend staying at QT Melbourne, which is an exuberant, stylish hotel brand with an excellent location in the heart of Melbourne CBD. We stayed here for a staycation anniversary one year and it was perfect!

Of course, you’ll also find many of the best restaurants in Melbourne in the city, like Gimlet, Grill Americano, Reine & La Rue to name just a few. Sights include Federation Square, Flinders Street Station, the NGV Australia and the State Library of Victoria.

I would avoid staying on King Street, which is somewhat of a red light district, and Lonsdale, purely because it’s so far north in the city. The best parts of Melbourne CBD are east of Swanston Street, and south of Little Bourke Street – effectively the southeast corner of the city. 

 Staying in the Melbourne CBD also means it’s a short walk across the river to Southbank, the Arts Centre and the NGV, or a short walk north of the city into Carlton and Fitzroy. You can also get the 96 tram from the CBD to St Kilda.

Best hotels in Melbourne CBD

• The Westin – $$$$ For a luxurious stay, look no further than The Westin. It’s centrally located in the CBD, on Collins Street, which is the most beautiful street in the city. The nicest parts are between Russell & Spring. It’s also close to Flinders Street, which makes it easy for catching trains around the city.
• QT Melbourne – $$$ We stayed here on a “staycation” for our anniversary one year, and it was so much fun. QT is a very stylish hotel brand, and we loved the hotel rooftop bar and the central location.
• Park Hyatt – $$$$ A celebrity favourite, the Park Hyatt is one of the most luxurious hotels in Melbourne. Located just on the edge of the CBD fringe, it’s very well located.
• Hotel Indigo Melbourne – $$$ Hotel Indigo is one of my favourite hotel brands, and part of IHG. I haven’t stayed at the Melbourne location, but have stayed at the Brisbane Hotel Indigo several times. While this one is located on Flinders Lane, it’s about a twenty-minute walk from the best parts of Flinders Lane, which is on the eastern side of the city (this hotel is on the western end).

Find more hotels in Melbourne CBD

Southbank

You’ll find loads of accommodation options in Southbank, which is a precinct on the Yarra River directly across the river from the CBD. Crossing the Yarra is a short walk across one of several footbridges, so it’s perfect for a weekend exploring the Melbourne CBD, visiting the NGV or seeing shows at the Arts Centre in Southbank.

While Southbank doesn’t have the local neighbourhood vibe of other neighbourhoods on this list, it’s super central and convenient, with a wide range of accommodation options, and the waterfront precinct is a lovely part of Melbourne for visitors. 

Best hotels in Southbank

• The Langham – $$$$ – For a truly special stay, splurge on a few nights at The Langham. The luxury hotel is well located in the heart of Southbank.
• Crown Promenade – $$$ – Located inside the sprawling Crown Casino complex, Crown Promenade is a well-located luxury hotel in Southbank, with access to the pretty Southbank Promenade.
• Ink Hotel Southbank – $$ – A vibrant, budget hotel in a central Southbank location. A great base for travellers looking for a nice hotel that won’t break the bank.

Find hotels in Southbank

Carlton

Carlton is one of the best neighbourhoods to stay in Melbourne, with bustling Lygon Street, the pretty Carlton Gardens and the UNESO World Heritage Listed Royal Exhibition Building. Carlton is a great area to stay in Melbourne for visitors also because it’s wedged between the Melbourne CBD and Fitzroy, which are two other must-visit neighbourhoods in Melbourne.

Located on Melbourne’s northside, it’s the perfect base for a few days of exploring Melbourne’s most famous neighbourhoods and precincts. 

Hotels in Carlton

• Crowne Plaza Carlton – $$$$ – Scheduled to open in December 2025, Crowne Plaza Carlton is the first major hotel to open in Carlton, making it easier than ever to stay in this iconic and stylish Melbourne neighbourhood.
• The Eminence Apartments – $$ – Perfect for those looking for a bit more room or kitchen facilities, The Eminence Apartments offers one and two bedroom apartments, perfect for family travel or group trips.
• The Essence Hotel Carlton – $$$ – A small, stylish hotel just 5 minutes’ walk from Lygon Street.

Fitzroy

Much like Carlton, Fitzroy is one of Melbourne’s most famous neighbourhoods and is well located near the CBD and some of the city’s most interesting neighbourhoods and precincts.

Fitzroy is the best area to stay in Melbourne to experience what makes Melbourne so unique – with dozens of independent cafés, shops, galleries, live music venues, bars and restaurants.

The best places to hang out in Fitzroy are along Smith St, Brunswick Street & Gertrude Street. Check out my Fitzroy Neighbourhood Guide for more ideas!

Best Hotel in Fitzroy

The Standard X, Fitzroy – $$$ – The Standard is my favourite hotel brand in the US, and now they’ve got their first Australian hotel in Fitzroy! The Standard X brand is the more affordable sister brand to The Standard, and brings a stylish boutique hotel to Fitzroy.

Find more accommodation in Fitzroy

St Kilda

On Melbourne’s southside, St Kilda is the best neighbourhood in Melbourne for backpackers. Melbourne’s most famous beachside suburb, St Kilda is a historic neighbourhood with a long and colourful history. While St Kilda’s charms have faded a little bit in recent years, it’s still a very popular neighbourhood, especially in summer. Check out the iconic façade of Luna Park, catch a show at the historic Palais Theatre, hang out on the waterfront and on the beach, or explore Acland Street.

Best Hotel in St Kilda

The Prince of Wales – $$ – The Prince is a stylish boutique hotel, and popular pub & bandroom on the corner of Fitzroy St & Acland St in St Kilda. It’s well located for exploring the best of St Kilda, even if Fitzroy St itself is a little bit gritty these days. I work for the company that operates The Prince, but it is genuinely the most stylish hotel in St Kilda.

Find more hotels in St Kilda

Richmond

If you’re visiting for the Australian Open, the AFL Grand Final, the cricket or another major sporting event at the MCG or Rod Laver Arena, Richmond is the best area to stay in Melbourne. Richmond is a central Melbourne neighbourhood, located east of the city, with a high density of bars, pubs and nightlife. You’ll find the most activity along Church Street and Swan Street in Richmond, which can be lively until the early hours of the morning. Avoid staying on Victoria Street which has noticeable safety concerns.

Best hotels in Richmond

• Motley Hotel by Hilton – $$$$ – Part of Hilton’s Tapestry Collection, the Motley Hotel oozes personality with over-the-top maximalist decor. Located on Bridge Road, it’s in a central part of Richmond, 18 minutes’ walk from the MCG, and far enough away from the peak nightlife crowds of Swan Street, and sketchy Victoria Street.
• Lanbruck Richmond Hill – $$$ – A very stylish aparthotel, where every room includes a kitchenette. Excellent location on Bridge Road, just a few blocks from the MCG.
• Urban Nest Richmond Swan St – $$$ – An excellent apartment stay, for those looking to be in the heart of the action on Swan Street. Close to Richmond’s best pubs, bars and nightlife.
• MAC Richmond by Melbourne Apartment Collective – $$$ – Get a true neighbourhood experience staying at these stylish studio apartments, one of which comes with a quaint terrace. Located in the backstreets of Richmond, but extremely close to the MCG.

Find more hotels in Richmond

South Yarra

South Yarra is one of the best places to stay in Melbourne for a short city break. South Yarra is a centrally located suburb on Melbourne’s southside, directly south of the Yarra River. South Yarra is close to the Botanic Gardens and the Yarra River, is just two stops on the train from the Melbourne CBD.

Best hotels in South Yarra

• The Olsen Art Series – $$$$ – Part of the stylish Art Series boutique hotel group, The Olsen is a very stylish hotel stay in the heart of South Yarra.
• Ovolo South Yarra – $$$ – A stylish boutique hotel in the absolute heart of South Yarra. Super close to the train station, which will make it really quick to get into the city or other parts of Melbourne.
• District Apartments – $$$ – Ultra modern one, two and three bedroom apartments, in the heart of South Yarra. Also very close to South Yarra train station.
• MAC South Yarra – $$$ – A stylish apartment stay, in a backstreet just off Chapel Street in South Yarra.

Find accommodation in South Yarra

Getting around Melbourne

Melbourne is famous for its trams, which run throughout the city. Buy a Myki card from a 7-11 or a major train station and use it to catch trams, trains and buses all over the city. Trams are a great way to get around Melbourne, particularly in the CBD, where trams are free. You’ll need to tap on if you’re going past the CBD.

Further Reading

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