Where to Stay in Melbourne

The Best Areas to Stay in Melbourne

a city with a lot of tall buildings

While not boasting a sprawling harbor, iconic bridge, or opera house like Sydney, Australia’s second largest city rivals it as the commercial, cultural, and artistic center of the country. Vibrant, bohemian, and multicultural, Melbourne is also arguably the world`s hub for major international sporting events throughout the year as well as a unique code of Australian football. The extensive parks, inner-city beaches, excellent public transportation, and easy access to attractions across the state are just more reasons why this city of nearly five million is regularly ranked the ‘Most Liveable in the World’.

Staying in the city center makes sense because of its fantastic amenities, handful of attractions, and easy public transport to the rest of Melbourne. Additionally, and within just a few stops by tram (often complimentary) from the city center, are spacious hotels on the city outskirts: at Docklands, a revitalized and affluent suburb facing a delightful marina; Southbank, on the other side of the Yarra River from downtown and home to the extraordinary Crown Casino complex; South Melbourne, including Albert Park, which offers substantial gardens and an appealing suburban atmosphere; and East Melbourne, with its fashionable hotels and numerous colonial-era buildings.

Two other areas located within a 15 minute tram ride from the city center hold touristic significance on their own: South Yarra, a stylish suburb packed with boutique hotels, trendy eateries, and hip bars; and St Kilda, with its expansive beach, amusement park, live music venues, and palm tree dotted gardens.

The Best Places to Stay in Melbourne

a large building with a clock on the side of it

Best Areas in Melbourne for…

  • Best Area in Melbourne for Sightseeing: City Centre
    While there aren`t many definite attractions in downtown Melbourne`s core, many visitors opt to stay there due to the superb shopping centers, public markets, covered walkways, and numerous eateries and bars scattered about, particularly along the scenic Yarra River and narrow alleyways that the city is renowned for. Melbourne also offers outstanding public transportation options, like trains spanning the state and complimentary trams within the city center and surrounding outskirts.
  • Best Area of Melbourne for Nightlife: St Kilda
    The informal and bohemian beach neighborhood of St Kilda is home to three of Melbourne’s top venues for live entertainment and cultural events: the historic Palais Theatre, Hotel Esplanade, and The Prince Hotel. All three locations are within walking distance of each other and of most hotels in this area. During summer, St Kilda becomes livelier as busy cafés along Acland Street fill up and cries of joy emerge from the Luna Park amusement park.
  • The best area in Melbourne for food and restaurants is Southbank
    Along the southern edges of the Yarra River, which runs through the center of Melbourne, is an extensive selection of upscale bistros and bars in compact areas such as South Wharf, Southgate, and the sprawling Crown Casino complex at Southbank. All are perfect places to wine, dine, and observe people, and prices are not always excessively high. Romantic, all-inclusive dinner cruises are also offered along the Yarra.
  • Best Area of Melbourne for Families: Docklands
    Only a few stops via free tram from downtown is the revitalized area of Docklands. Facing an attractive harbor and marina which are ideal for walking and cycling, it’s a spacious and tranquil place with far less traffic than the city center. The appealing District Docklands shopping center is home to an arcade, ice arena, movie theaters, and mini golf course. Other family-friendly attractions in Docklands include the Melbourne Star observation wheel and the massive stadium, with approximately three games of the unique Australian Rules Football code each weekend during winter.
  • Best Area in Melbourne for Beaches: St Kilda
    Approximately 4 miles from the city center accessible by frequent tram, St Kilda offers a bohemian but sometimes tacky vibe distinctively different from the rest of Melbourne. Along the lengthy beach, visitors can enjoy water activities like paddle boarding and kite surfing as well as cycling along the promenade renowned summer sunsets and breezes. Added attractions include some of Melbourne’s finest cafes and funkiest pubs, three of the city’s premier live music venues, the quirky and historic Luna Park amusement park, and a pier extending deep into the bay. What St Kilda does not provide however is suitable swimming, so heading to Brighton Beach is important if getting into the water is a priority.
  • Best Areas in Melbourne for Gardens: South Melbourne and Albert Park
    Thankfully, the original planning of the capital of Victoria – self-labeled the ‘Garden State’ – incorporated numerous parks and gardens. Regretfully, few are in the city center but many can be found in inner-city suburbs, like Carlton and Fitzroy, which have few (or no) places to stay. South Melbourne boasts the magnificent Royal Botanical Gardens and adjoining Kings Domain. Both are expansive, free to enter, and packed with statues, glasshouses, and other colonial-era remnants and modern attractions. Barely 300m from the southern edge of these gardens is Albert Park which transforms into a racing track for the Formula 1 Australian Grand Prix each year.
  • Best Area in Melbourne for Watching Sports: East Melbourne
    In general, residents of Melbourne have an even stronger enthusiasm for sports compared to other parts of Australia. Much to the disappointment of Sydneysiders, Melbourne hosts several premier global competitions in tennis, golf, and horse and motor vehicle racing, as well as regular cricket and Australian Rules Football matches, the latter being a unique local code. Within a compact region on the eastern edges of the downtown core are the world-renowned 100,000-seat Melbourne Cricket Ground, Melbourne Park which is home to the Australian Open tennis tournament, and AAMI Park for rugby union, rugby league, and soccer games.
  • Best Area in Melbourne for Markets and Bazaars: City Center
    The roads of downtown Melbourne are congested with fashionable boutiques, multi-level department stores, and wandering arcades, and part of the main thoroughfare, Bourke Street, is a pedestrian zone bustling with high-end shops. Spacious, historic, and atmospheric, Queen Victoria Market on the northern edge of the city center sells fresh produce as well as clothes, souvenirs, and food. Artisan and handicraft stalls are also set up on weekends in the inner-city suburbs of Prahran, St Kilda, and South Melbourne, all easily accessible by tram from downtown.
  • Best Area in Melbourne for Transport: City Center

    • Weary commuters may not agree, but the center of Melbourne boasts an excellent public transport system. Quickly linked by freeway to the airport (30 minutes) via express and direct shuttle buses, the city center is also home to three major train stations providing services to outer suburbs and regional towns that are worth visiting, such as Geelong, Werribee, and Ballarat. And from Docklands, on the western fringes of the city, ferries cross Port Philip Bay.

  • Most Romantic Area in Melbourne: Southbank
    The Yarra River slices through the core of Melbourne but lacks the same impressive or romantic nighttime charm as Sydney Harbour. However, the southern shorelines are lined for a couple of miles with trendy riverside bars and bistros – each ideal for people-watching during the day and intimate dining at night. Especially sentimental is a dinner cruise aboard the old-fashioned Spirit of Melbourne boat. Then, perhaps, finish an evening with a splash at the Crown Casino.
  • Best Areas in Melbourne for Walking and Cycling: St Kilda and South Melbourne
    Melbourne presents numerous trail-ways designed exclusively for foot and bicycle traffic. The seaside path in St Kilda represents part of a extensive 11-kilometer stretch adjacent to the urban coastline and proves to be quite popular among leisurely residents and committed cyclists. St Kilda signifies a effortless bike ride from South Melbourne, dominated by the magnificent Royal Botanic Gardens (considered one of the finest of its type globally) and Albert Park Lake, which is encircled by a near 5-kilometer route. An application-based bike share program in Melbourne provides stands throughout the downtown and inner suburbs where any individual can rent a bicycle for a quite small charge.
  • Best Area in Melbourne for First-Timers: Docklands
    The large crowds, traffic jams, and loud noises within the busy and cramped city center (including Southbank) could overwhelm some visitors. Also, staying in suburban areas like St Kilda and South Yarra often necessitates comprehending and battling the public transportation system. Ideally situated on the city fringe, and offering space and serenity not found in downtown, is Docklands. This area provides a magnificent marina lined with cafés and paths that are perfect for cycling and can be walked to from the city center (or only a few stops by free tram).
  • Safest Neighborhood in Melbourne: Docklands
    This expansive, carefully designed, and affluent region is packed with high-rise apartment complexes. With broad, brightly lit streets, it doesn`t attract individuals and homeless folks who may congregate in less desirable suburbs like St Kilda and the narrow lanes across central Melbourne. Safe for evening walks along the marina, Docklands is also perfect for families.
  • Region of Melbourne known for being less safe
    .

    • The reputation of the inner-city coastal neighbourhood of St Kilda has enhanced notably in recent times as tacky bars and shabby dwellings have been replaced with trendy cafés and fashionable apartments. Yet, employing precautions – for instance, traversing well-lit streets and using taxis in the late night – is prudent. This is because some trouble-makers and wanderers do congregate along the beach and gardens, and the busy pubs, clubs, and live music venues attract intoxicated behavior.

The 7 Best Neighborhoods in Melbourne for Tourists

a large body of water with a bridge over it

1. City Center

As one of Australia`s most historically significant cities, Melbourne is filled with architectural treasures as well as trendy boutiques, extensive department stores, and wandering arcades. The city is also renowned for its narrow lanes, many coated with intriguing street art and bursting with hip cafés. The Yarra River is also bordered by charming waterside bars and bistros, as well as the remarkable Crown Casino complex. Although downtown real estate is becoming alarmingly expensive, public transportation is excellent and free within the city center.

2. Docklands

Past the western edge of the city center, Docklands is a renovated area of upscale apartments. Situated around a pleasant marina flanked by harborside eateries and dominated by an enormous football stadium, Docklands is also appealing to families. This is attributed to the cycling routes (bike rentals are effortlessly available); The District Docklands shopping center, arguably Melbourne’s finest; and the outstanding Melbourne Star observation wheel. Additionally, all hotels are only a few stops by complimentary and regular trams from the city center.

3. Southbank

Located across the Yarra River from downtown, Southbank is led by the amazing Crown Casino complex. Other high-end areas for shopping, eating, and drinking stretch along the southern edge of the river, and additional parts have top hotels, fashionable art galleries, and sizeable concert venues. Barely 5 minutes away by one of numerous bridges to the core, Southbank enables visitors to experience the cultural, architectural, artistic, and culinary pleasures of the city center without remaining among its crowds, noise, and traffic.

4. South Melbourne and Albert Park

Several blocks further down from Southbank and only a few tram stops from downtown, South Melbourne is an affluent residential area devoid of visitors. It is home to the magnificent Royal Botanic Gardens which is filled with trees, statues, glasshouses, and colonial-era buildings. A little further south, Albert Park is based around a lake (encircled by a 3-mile path ideal for walking, jogging, and cycling) and roads that are remarkably transformed into the circuit for the Formula 1 Australian Grand Prix. Only 2 miles by bicycle (which are easy to rent) is St Kilda, with its extended beach and alluring amenities.

    With over 400 stores, Pacific Fair is one of the biggest shopping centers in the country. Located along Gold Coast Highway in Broadbeach and only 500m from the ocean, it also provides a movie complex and food court in a delightful palm-lined outside setting. Check the website about free shuttle bus services.

  • Affordable/Modestly Priced Hotels: Hotel Mercure Albert Park • Lily Sands Inn

5. South Yarra

Similar to the nearby suburbs of Toorak and Prahran, South Yarra is a fashionable area known for boutique hotels, refined casual dining, and weekend markets. With a pleasant neighborhood feel and relaxed atmosphere, large tourist groups are uncommon here and restaurant prices cater to locals. Locals recommend exploring the finest corner pubs, most authentic Italian eateries, and trendiest coffee shops. Only 2.5 miles by regular tram (and train) to the city center and to the lively beach area of St Kilda, South Yarra is also within easy walking distance of the splendid Royal Botanic Gardens.

6. St Kilda

While expansive and sandy, the beach at St Kilda is not ideally suited for swimming, but everything else truly embodies seaside charm: welcoming summer breezes, scenic sunsets worthy of photography, seaside gardens dotted with palm trees, water activities, an extended pier, a boardwalk for cycling, abundant eateries, and a quirky and historically relevant amusement park. Bohemian and somewhat tacky in places, St Kilda also boasts several excellent venues for live music and a pedestrian plaza full of cafés. All of this is just a 15 minute tram ride from the city center.

7. East Melbourne

The eastern section of the city center and the suburbs nearby provide extensive parks and beautifully preserved colonial-era buildings not commonly seen elsewhere in the city or outskirts. Unlike the increasingly busy downtown area, the additional space in East Melbourne allows the top-ranked hotels located here more room and finer perspectives. Only a couple of tram stops from the heart of the city, most hotels are also within walking distance of the sporting complex that features the iconic 100,000-seat Melbourne Cricket Ground.

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Welcome to my travel website! I’m Mary Howard, an American who has been exploring the world full-time for 8 years.

Together with my husband, Intan, we often find ourselves in our second home, Bali, but our adventures take us to exciting destinations all over the globe.

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