Southbank and the Yarra River in Melbourne

Where to Stay in Melbourne: Best Areas & Hotels (2026)

The best areas to stay in Melbourne for first-timers, foodies, beach lovers and budget travellers, with typical prices and hotels in the CBD, Southbank, Fitzroy, St Kilda and South Yarra.

Updated October 26, 2026 · 3 min read
Quick answer: Stay in the CBD for a first visit: you can walk or ride free trams to most sights. Choose Southbank for river views and theatres, Fitzroy for cafés and nightlife, St Kilda for the beach, and South Yarra for shopping and quiet streets.

Best areas at a glance

Area Best for Mid-range price per night
CBD First-timers, transport, laneways A$180–280
Southbank Views, arts precinct, families A$200–320
Fitzroy / Collingwood Food, bars, local life A$170–260
St Kilda Beach, budget, sunsets A$150–240
South Yarra / Prahran Shopping, dining, gardens A$180–270
Docklands Waterfront apartments, events A$170–250

Prices are typical for double rooms outside big events. During the Australian Open (January), the Grand Prix (March) and the Melbourne Cup (early November), rates can jump sharply.

CBD (city centre)

The grid between Flinders Street and La Trobe Street holds the laneways, arcades, shopping and most restaurants. It sits inside the Free Tram Zone, so getting around is easy and free. The eastern end (near Collins Street and Spring Street) is the most elegant; the west near Southern Cross Station is handy for the SkyBus.

  • Luxury: QT Melbourne, Park Hyatt
  • Mid-range: Ovolo Laneways, Hotel Indigo on Flinders Lane
  • Budget: Space Hotel (private rooms and dorms)

Southbank

Across the Yarra River from Flinders Street Station, with the Arts Centre, NGV International, Crown and riverside restaurants. Rooms often have big views. It is a 5–10 minute walk to the CBD.

  • Luxury: The Langham, Crown Towers
  • Mid-range: serviced apartments near Southbank Boulevard

Fitzroy and Collingwood

Melbourne’s creative inner north, full of cafés, vintage shops, live music and bars along Brunswick, Gertrude and Smith streets. Hotels are few; most stays are apartments and small guesthouses. Trams 11 and 86 run to the CBD in about 10–15 minutes.

St Kilda

Melbourne’s beach suburb, with the pier, Luna Park, Acland Street cake shops and a lively backpacker scene. It is 25–30 minutes from the CBD on tram 96.

  • Boutique: The Prince
  • Budget: Base Backpackers St Kilda

South Yarra and Prahran

Leafy and upmarket, with Chapel Street shopping, Prahran Market and the Botanic Gardens nearby. South Yarra station has fast trains to the city.

  • Boutique: The Lyall, The Cullen (Prahran)

Docklands

Modern apartments on the water, close to Marvel Stadium and inside the Free Tram Zone. Good for longer stays and event-goers, but quieter at night.

Compare hotel prices in Melbourne

Which area is right for you?

  • First visit, short stay: CBD or Southbank.
  • Families: Southbank or Docklands apartments.
  • Couples and foodies: Fitzroy or South Yarra.
  • Budget or beach: St Kilda.

Plan your days with our Melbourne itinerary.

For events, opening hours and official visitor information, see Visit Melbourne, the official tourism site.

More Melbourne guides

FAQ: where to stay in Melbourne

What is the best area to stay in Melbourne for tourists?

The CBD: it is central, walkable and inside the Free Tram Zone.

Is it safe to stay in Melbourne CBD?

Yes, it is generally safe. As in any big city, stay aware late at night around busy nightlife streets.

Is St Kilda a good place to stay?

Yes, if you want the beach and a relaxed vibe. It is further from the sights, but tram 96 makes the trip easy.

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