Where To Stay In Melbourne: 5 Best Areas & Neighborhoods

Melbourne prides itself on being Australia’s cultural capital. It is filled with great theaters, art galleries, museums, and more items that attract cultural vultures throughout the year.

Fun fact: the city was almost named Batmania after one of its founders, John Batman. It was also home to the world’s very first feature film back in 1906.

Melbourne is famous for its hidden laneways, massive tram network, and insane coffee culture. In fact, locals take their brews so seriously that McCafé was actually invented here.

Each neighborhood brings its own unique flavor to the table. You might want to step out your door into a maze of neon-lit street art. Maybe you prefer waking up next to a historic beach pier with wild penguins waddling around. You could also end up staying in a hipster haven packed with vintage shops and world-class bakeries.

Where you drop your bags matters. Choosing the right spot depends on your budget, your travel style, and how close you want to be to the action. Here is a breakdown of the top areas to stay in Melbourne so you can pick your perfect base.

In this travel guide:

Melbourne City Center (CBD)

Best area for: shopping, food, nightlife

Melbourne’s City Center, or CBD, is where you get a little bit of everything. Victorian-era buildings sit next to glass towers. Trams rumble through the streets. Then there are the famous laneways, where a tiny coffee shop or a wall covered in street art can appear around the corner. The city’s original grid was laid out in 1837, and much of the CBD is still surprisingly easy to explore on foot.

We usually start around Flinders Street Station and Federation Square. The station dates back to 1909, while Fed Square is home to the Ian Potter Centre, ACMI, and the Koorie Heritage Trust. It’s also right beside the Yarra River.

From there, we head into the laneways. Degraves Street and Centre Place are packed with cafes and little restaurants. Hosier Lane is the place for street art. The Block Arcade and Royal Arcade bring a completely different feel, with beautiful old architecture and small stores.

For a bit of history, you can visit the Old Melbourne Gaol or the State Library of Victoria. Queen Victoria Market is another must. It has been a Melbourne landmark for more than a century and is still one of the best spots for food and browsing.

And coffee? Absolutely. We’d make a stop at Patricia Coffee Brewers on Little Bourke Street. It’s tiny, lively, and very Melbourne. Come hungry, too. The CBD has enough great food to keep us busy for days.

Best place to stay in Melbourne CBD

Hotel QT Melbourne. Address: 133 Russell St, Melbourne VIC 3000, Australia.

Richmond

Best area for: food, sports, entertainment

Richmond is one of the coolest parts of Melbourne. It started back in the 1800s as a gritty industrial hub filled with brickworks and factories. Now, those old red-brick warehouses host tech startups, lofts, and incredible coffee spots.

It balances an energetic neighborhood vibe with a massive draw for visitors. On game days, everyone floods down toward the Melbourne Cricket Ground right on the edge of the suburb to catch Australian rules football. Music fans grab tickets for shows at the iconic Corner Hotel. You can also explore local history nearby at the Australian Sports Museum or check out contemporary art galleries tucked inside former industrial spaces.

Food is a massive deal here. Victoria Street serves up unbelievable authentic Vietnamese pho, while Swan Street and Bridge Road cater to late-night drinks and modern Australian dining. When morning hits, we head straight to Top Paddock on Church Street. Their ricotta hotcakes and specialty pour-over coffees make it the absolute ultimate local brunch spot.

Best place to stay in Richmond

Amora Hotel Riverwalk. Address: 649 Bridge Road, Richmond, 3121 Melbourne, Australia.

St. Kilda

Best area for: beach, nightlife, diversity

We’re off to the beach. You can get to St. Kilda from downtown in no time, then spend the day by Port Phillip Bay. The palm-lined foreshore is the obvious starting point. We usually walk along the beach toward St Kilda Pier, where little penguins can sometimes be spotted around the breakwater.

There’s plenty of history hiding behind the laid-back atmosphere. St Kilda started out as a fashionable seaside resort for Melbourne’s wealthy in the 19th century. Later, it became known for its nightlife, artists, musicians, and bohemian crowd. You can still see traces of all those eras today.

Luna Park is the big landmark. Its giant smiling entrance has been greeting visitors since 1912, and the old-school rides are still running. Right next door, the Palais Theatre dates from 1927 and regularly hosts concerts and shows. For something quieter, we’d check out Linden New Art, a contemporary gallery inside a beautiful Victorian mansion.

Acland Street is where we usually head when hunger kicks in. The street is packed with cafes, restaurants, bakeries, and those famous European-style cake shops. Monarch Cakes has been making Eastern European treats here since 1934. For breakfast or coffee, Galleon Cafe is a fun local pick with a retro feel.

Best place to stay in St. Kilda

The Prince Hotel St. Kilda. Address: 2 Acland Street, 3182 Melbourne, Australia.

Southbank

Best area for: upscale, food, riverside

Southbank is Melbourne’s coolest riverfront neighborhood. Decades ago, this area operated primarily as an industrial manufacturing hub filled with warehouses. A major urban renewal push in the 1990s completely transformed it into a bustling modern cultural precinct.

These days, high-rise skyscrapers dominate the skyline, making it a lively mix of residential apartments, business hubs, and tourist hotspots. Right along the Yarra River, the Southbank Promenade stays packed with street performers, bustling outdoor patios, and constant energy.

Art lovers will find paradise here. We frequently visit the National Gallery of Victoria (NGV International) to look at massive art collections, or catch performances at the Arts Centre Melbourne. If you want a killer city view, you can head up to the Skydeck in Australia 108.

When we need a solid coffee break, we stop by Code Black Coffee on Queensbridge Street. They brew fantastic specialty espresso and pour-overs that hit the spot every time. Afterward, grab a spot on the floating deck at Ponyfish Island for a casual drink right under the bridge. It is the absolute best way to experience Southbank’s unique riverside vibe.

Best place to stay in Southbank

The Crown Metropol Hotel. Address: 8 Whiteman St, Southbank VIC 3006, Australia.

Fitzroy

Best area for: nightlife, hipster, bohemian

There is a debate around Melbourne surrounding which area of the city has the best nightlife. Some argue that St. Kilda is the best place to spend an evening. Others claim that Fitzroy is the ideal spot for a night out, and it is difficult to argue with those individuals.

Located northeast of Melbourne’s City Center, Fitzroy oozes with hipster cool. It is packed with creative types, trendsetters, influencers, and artsy individuals. The area has a Bohemian reputation and as the cultural hub of the city, it is ideal for any culture vulture seeking to learn more about local history.

Fitzroy was Melbourne’s first suburb, officially separated from the city in 1858, and its old working-class roots are still visible in the Victorian terraces, bluestone buildings, pubs, and narrow streets.

We usually start around Brunswick Street. It’s the neighborhood’s main artery, packed with vintage stores, independent shops, bars, galleries, and plenty of places to eat. Gertrude Street feels a little more polished, with designer stores, restaurants, and wine bars. Smith Street brings another mix of food, nightlife, and local businesses.

There’s plenty to do beyond eating and drinking. The Rose Street Artists’ Market is a fun weekend stop for local art, jewelry, ceramics, and other handmade stuff. Street art is everywhere, too. Look for the big Everfresh mural on Johnston Street.

For coffee, we’d head to Industry Beans Fitzroy, tucked into the backstreets in an old warehouse. It’s also a good spot for breakfast or lunch. For something more casual, Archie’s All Day on Gertrude Street is another solid choice.

Fitzroy can feel a little rough around the edges, and that’s part of its appeal. It has changed a lot over the years, but the old character hasn’t disappeared completely.

Best place to stay in Fitzroy

Hotel Park Hyatt. Address: 1 Parliament Pl, Melbourne VIC 3002, Australia.

Where travel critics stay in Melbourne

Want to know where travel critics from publishers like The New York Times, Frommer’s, Fodor’s and Lonely Planet stay in Melbourne, Australia? Check out our overview of all recommended hotels, hostels and B&Bs in Melbourne.

Budget

Art Series The Larwill Studio.

“Creative, wellness-minded travelers who want to be slightly removed from the thrum of Melbourne’s city center (but not deep in suburbia) will love the Larwill for its artsy ambience, gallery-like lobby and hallways and accessible location.” — New York Times.

Address: 48 Flemington Rd, Parkville VIC 3052, Australia.

Mid-range

The Ovolo Laneways Hotel.

“This boutique hotel mixes hipster chic with a funky executive vibe. It’s friendly, fun and loaded with goodies – there’s a free self-service laundry, a free minibar in each room and free booze downstairs at the daily happy hour.” — Lonely Planet.

Address: 19 Little Bourke St, Melbourne VIC 3000, Australia.

Luxury

Hotel United Places Botanic Gardens.

“Of the 12 smart yet understated rooms, those in moss-green tones have views of the gardens; the others, in shades of dusky pink, overlook the neighborhood. Every detail here is carefully considered and in line with the taste level expected in this style-driven city.” — CN Traveler.

Address: 157 Domain Road, South Yarra, 3141 Melbourne, Australia.

FAQ: Melbourne hotel recommendations

If you’re looking for a budget, boutique, or luxury hotel in Melbourne-or maybe your travel plans require an excellent hostel? Want to know which hotel serves the best breakfast? Here are all those answers and more about where to stay in Melbourne.

Best time to visit Melbourne

The best time to visit Melbourne is during the shoulder seasons of autumn (March to May) and spring (September to November).

These periods offer pleasant temperatures, ranging from 57°F to 75°F, and a delightful array of picturesque scenery. Imagine strolling through the golden hues of autumn leaves or the vibrant blossoms of spring – these seasons provide the perfect backdrop for your Melbourne adventure!

These shoulder seasons also host some of Melbourne’s most iconic events. In March, you can witness the city come alive during the Melbourne Food and Wine Festival, where you’ll get to indulge in a gastronomical extravaganza.

Or, visit in November for the famous Melbourne Cup, a prestigious horse racing event that will have you on the edge of your seat!

If you’re a sports enthusiast, you’re in for a treat! The best time to visit Melbourne for sports lovers is during the summer months of December to February. This period sees the city hosting some of the most significant sporting events, such as the Australian Open Tennis Championships and the Boxing Day Test cricket match.

The summer climate, with temperatures averaging around 80°F, is perfect for enjoying outdoor activities and soaking up the city’s sporty atmosphere.

Melbourne’s cultural scene is not to be missed either! Visiting during the winter months of June to August allows you to dive into various cultural events, such as the Melbourne International Film Festival and the Open House Melbourne architectural showcase.

The cooler climate, with temperatures averaging around 50°F, is ideal for exploring the city’s indoor attractions and cozying up in its trendy cafes.

Best things to do in Melbourne

There are plenty of things to do in Melbourne and surrounding areas, including day trips, attractions, museums, sightseeing tours and many other activities. Here’s our list of 3 things you should definitely do when you’re in and around Melbourne:

Melbourne: Full-Day The Great Ocean Road Experience

Experience the world-famous Great Ocean Road with tales of shipwrecks and years past, panoramic vistas around every corner and of course the best views of the majestic and iconic 12 Apostles. Price: $98. More info.

Spirit of Melbourne 4-Course Cruise with Drinks

Enjoy a great night out and have a truly unique experience in a cruising restaurant. With a tantalizing 4-course menu and a vibrant atmosphere, you’ll experience an unforgettable evening while cruising down the Yarra River. Price: $106. More info.

Phillip Island Penguin, Brighton Beach, Moonlit Sanctuary from Melbourne

Discover the natural delights of Phillip Island with an eco-tour from Melbourne. See the iconic Brighton Beach bathing boxes, visit the beach and take some time to admire these historic landmarks. Price: $104. More info.

More things to do in Melbourne

Deciding where to stay in Melbourne

To summarize, this travel guide has covered the best areas of Melbourne, as well as some hotel tips and things you can do. It’s now up to you to decide which area you prefer.

Top 5 neighborhoods to stay in Melbourne

• Fitzroy
• St Kilda
• Richmond
• Central Business District
• Southbank

As you have seen in this article, there are plenty of things to explore, and deciding where to stay in Melbourne is important. Whether you stay in Fitzroy, St Kilda, Richmond, Central Business District or Southbank, all those neighborhoods are in good locations.

The atmosphere of the area, whether you travel for leisure or business, whether you travel with your family or friends, and proximity to the attractions you prefer to visit should probably be the deciding factors. Whatever your preference is, you’ll have a great stay in Melbourne.

Melbourne overview

See our other guides about the best places to stay in Melbourne:

Hotels in Melbourne

Hostels in Melbourne

Boutique hotels in Melbourne

Luxury hotels in Melbourne

Cheap hotels in Melbourne

Sustainable hotels in Melbourne