Where to Stay in Melbourne
Eight areas, a free tram zone, and a city where the tram line matters more than the postcode.
For a first visit, stay in the CBD. Trams inside the city grid are free, and Chinatown, the laneways, the Queen Victoria Market and the gardens are all within a walk. Melbourne is large and sprawling, though, so outside the centre the rule is simple: choose a tram line before you choose a room.
Melbourne is also far cheaper than Sydney. On the same November night, measured the same way, a room in Melbourne’s CBD came out at well under half the price of one by Sydney’s harbour.
If you want something else from the week:
- Galleries, the river and the gardens — Southbank.
- A quiet street a walk from the city — East Melbourne.
- Eating and drinking out every night — Carlton and Fitzroy.
- The MCG, the tennis or the pubs — Richmond.
- Shopping and a smarter stay — South Yarra.
- Here for the bay — St Kilda.
- A longer stay with a car — Box Hill, where we stayed.
We stayed in Box Hill, and walked and rode the trams across the city centre, East Melbourne and St Kilda. Box Hill is written from that stay. The rest is researched, and every hotel we name is one we would look at, not one we have stayed in.
Areas, prices and hotels reviewed 24 September 2026.
How the areas compare
| Area | First visit | Nightlife | Families | Transport | Price |
|---|---|---|---|---|---|
| CBD, Chinatown & the market | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $$ |
| Southbank | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $$$ |
| East Melbourne | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $ |
| Carlton & Fitzroy | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $ |
| Richmond | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $ |
| South Yarra | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $$ |
| St Kilda | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $ |
| Box Hill | ★★★★★ | ★★★★★ | ★★★★★ | ★★★★★ | $ |
The stars are a quick read across the qualities most travellers weigh up — more stars means a stronger fit for that quality, not “better” overall. Price is shown as a band rather than stars, since cheaper isn’t a virtue in itself.
Price positions are relative to the other Melbourne areas in this table, not market rates. They come from 144 properties with a live rate for one night, two adults, Tuesday 24 November 2026, read on 24 September 2026 and assigned to an area by the property’s own location. Richmond (5 properties), Box Hill (6) and South Yarra (7) rest on small samples. Outside Southbank, the spread between areas is narrow.
Where the areas are
The CBD, Chinatown and the market fill the grid on the north bank of the Yarra, with Southbank directly across the river. East Melbourne is on the grid’s eastern edge, Carlton and Fitzroy are just to the north, and Richmond lies beyond East Melbourne, around the MCG.
South of the river, South Yarra sits beyond the Botanic Gardens, and St Kilda is on the bay. Box Hill is out on its own in the eastern suburbs, at the end of the 109 tram.
A guide to each area
CBD, Chinatown & the market
$$ · best first visitWhy stay here?
The city grid is the first-visit answer, because the trams inside it are free. Chinatown, the laneways, the State Library and Federation Square are a short walk apart, and the Queen Victoria Market sits at the north-west corner. We used the free trams to cross the city. The City Circle tram is free too, but when we tried it, it was too crowded to be worth the wait.
Good for
- A first visit with no car
- Free trams inside the grid; trains at Flinders Street and Southern Cross
- Late food every night in Chinatown and the laneways
Watch for
- Parking is expensive and hard to find
- The main streets are busy and noisy at night
Southbank
$$$ · river and galleriesWhy stay here?
Southbank faces the city across the Yarra, and its reasons are the river promenade, the National Gallery of Victoria, the Arts Centre and Eureka Skydeck. The Royal Botanic Gardens and the Shrine of Remembrance are a walk south through the Domain, and Anzac station on the new Metro Tunnel serves that end. Rooms here are the most expensive in the city, and most are in towers.
Good for
- Galleries, theatres and the river on the doorstep
- Families: gardens, Skydeck and wide promenades
- One bridge from Flinders Street station
Watch for
- The highest prices in the city, and a tower-block feel
- It is outside the free tram zone
East Melbourne
$ · quiet, by gardensWhy stay here?
East Melbourne is Victorian terraces and parks: Parliament House, the Fitzroy and Treasury Gardens, and the MCG on the far side of Yarra Park. We walked much of it, and it is the calmest place to sleep within walking distance of the city. It has few hotels and almost no nightlife, and it lies just outside the free tram zone.
Good for
- A quiet night a short walk from the city
- Gardens for children and early walks
- Walking to the MCG for the cricket or the football
Watch for
- Few places to stay, and most are small
- Little to eat or drink after dark
Carlton & Fitzroy
$ · food and neighbourhoodWhy stay here?
Carlton has the Royal Exhibition Building, the Carlton Gardens and Lygon Street's Italian cafés. Fitzroy, just to the east, has Brunswick and Gertrude Streets, with bars, bookshops and vintage shops. Trams run down Lygon, Nicholson and Brunswick Streets into the city in a short ride. There are few large hotels: this is guesthouse and apartment country.
Good for
- Eating and drinking out every night
- The gardens and the Melbourne Museum for children
- A neighbourhood rather than a hotel district
Watch for
- Few hotels; most of the choice is small or self-contained
- It is outside the free tram zone
Richmond
$ · sport and pubsWhy stay here?
Richmond is the MCG's suburb. Swan Street has the pubs and the football crowds, Bridge Road the shops, and Victoria Street a long run of Vietnamese restaurants. Richmond station is a few minutes from Flinders Street by train, and trams run along all three streets. Melbourne Park, home of the Australian Open, is a walk away. Our price sample here was small.
Good for
- Walking to the MCG and the tennis at Melbourne Park
- Pubs and cheap food along three long streets
- Lower prices, a few minutes by train from the city
Watch for
- Crowded and loud on match days
- Few hotels; much of the choice is apartments
South Yarra
$$ · shops and gardensWhy stay here?
South Yarra lies south of the river, on the far side of the Royal Botanic Gardens. Chapel Street and Toorak Road have the fashion shops, cafés and bars, and South Yarra station is a few minutes from Flinders Street by train. It suits a longer or more comfortable stay than the city grid, at similar prices. Our price sample here was small.
Good for
- Shops and cafés along two long streets
- Trains a few minutes from the city
- The Botanic Gardens on foot
Watch for
- Chapel Street is busy late at weekends
- It is outside the free tram zone
St Kilda
$ · beach baseWhy stay here?
St Kilda is Melbourne's seaside: the foreshore, the pier, Luna Park and the cake shops of Acland Street. Trams run from the city in about half an hour, and evenings are liveliest on Fitzroy Street. It had the lowest prices in our sample. We came one evening to watch the little penguins come ashore at the breakwater, and it is the best reason to stay by the bay.
Good for
- The beach and the pier on the doorstep
- The lowest prices in the city
- Families: Luna Park and the foreshore
Watch for
- Every trip into the city is a tram ride
- Crowded on summer weekends
Walk out along St Kilda pier as the light goes, and stand quietly by the breakwater at the end. After dark the little penguins come in from the bay and pick their way between the rocks, small and upright, a few metres from the boardwalk. Keep torches and camera flashes off, and wait. You are watching wild birds come home to the edge of a city of five million.
Box Hill
$ · long stay, carWhy stay here?
We stayed in Box Hill, in an apartment, and it worked because the 109 tram runs from there straight into the city. The train is quicker, at about half an hour to Flinders Street; the tram takes much longer but needs no change. Box Hill is a busy eastern centre with a large Chinese community and very good food. With a car, it is well placed for the Dandenongs and Puffing Billy.
Good for
- A longer stay with a car
- Chinese food as good as the city's
- Day trips east to the Dandenongs and the Yarra Valley
Watch for
- Half an hour to the city by train, and much longer by tram
- Too far out for easy evenings in the city
Book near the station or the tram terminus. Box Hill spreads out, and a listing twenty minutes' walk from either loses most of its value. If you are driving, check the parking before you pay.
Before you book
Our guide to accommodation in Australia covers what applies everywhere: how prices must be displayed, deposits and card holds, check-in and check-out, confirming an accessible room, and which nights to book first. What follows applies to Melbourne only.
When beds tighten
The Australian Open fills the city in the second half of January, around Richmond and Melbourne Park first. The Grand Prix at Albert Park moves to April in 2027. The AFL Grand Final in late September and the Melbourne Cup, on the first Tuesday of November, fill rooms across the city. The summer school holidays run from 19 December 2026 to late January 2027. Check each event’s dates on its own site before you book around it.
Check the tram, not the suburb name
The free tram zone covers the city grid, Docklands and the Queen Victoria Market, and trams only: trains are not free. Most areas on this page are outside it. Put a listing’s address into the Transport Victoria journey planner before you pay, and look at the time to Flinders Street. Until 1 January 2027, fares on Victoria’s trains, trams and buses are half price (checked on the Victorian Government’s site, 24 September 2026), which makes an outer base cheaper to travel from.
Booking an apartment
Victoria has charged a 7.5% levy on short stays booked through platforms such as Airbnb and Stayz since 1 January 2025. It may be built into the nightly price or shown as a separate charge, so compare the final total rather than the headline rate.
Getting in from the airport
There is no airport train, and there will not be one for some years. SkyBus runs to Southern Cross station from about four in the morning until one at night and takes roughly half an hour; the adult fare was $25.90 one way when we checked on 24 September 2026, and the half-price fares do not apply to it. From Southern Cross, the city grid and Docklands are a free tram ride away. We hired a car at the airport: if you do the same, check your hotel’s parking charge before you book.
A final word on staying in Melbourne
Stay in the CBD for a first visit, and let the free trams do the work. For anything longer, look at the tram or train line first and the suburb second. Melbourne rewards a base that is easy to get in and out of far more than one with a famous name.
Andrew + Margaret
- Melbourne Overview
- Great Ocean Road Journeys
- Puffing Billy Highlight
- Where to stay in Sydney Decide
- Accommodation in Australia Practical
- Getting around Australia Practical
Is Docklands a good place to stay?
It is inside the free tram zone and has plenty of large hotels, so it works for a stadium event or a short stay. For a first visit we would still choose the city grid, where more is within a walk.
Do we need a car?
Not for any inner area on this page. For Box Hill, the Dandenongs and the Yarra Valley a car helps, and central hotels charge for parking, often by the night.