Melbourne has so many beautiful neighborhoods, but I believe there are only 4 best areas to stay in Melbourne for first-time tourists and short-term visitors. They are Melbourne CBD, Southbank, Docklands, and Carlton/ Fitzroy.
I recommend these 4 areas due to their central locations and proximity to all tourist amenities. Staying in one of these areas allows you within walking distance to many restaurants, bars, cafes, shops, and famous attractions.
Additionally, these neighborhoods have high concentrations of accommodations for all budgets, ranging from backpacker hostels to luxury 5-star hotels. You’ll have many choices to choose from whether you are families, couples, solo travelers, or backpackers.
In general, Melbourne CBD is the heart of the action, Southbank is known for its art scene, beautiful gardens, and the peaceful Yarra River. Dockland is the modern waterfront dining and shopping area, while Carlton/ Fitzroy are known for its fun nightlife, markets, and multicultural eateries.
Other neighborhoods like St. Kilda, South Yarra, East Melbourne, and Richmond have some unique charm and advantages but they are either far from the city center or limited in accommodation choices. You can visit them during your visit.
St. Kilda is known for its beautiful beaches, vibrant nightlife and market scene, and a pier where you can spot little penguins. South Yarra is a great place for high-end shopping and fine dining. East Melbourne and Ricmond is home to the Melbourne Cricket Ground and Fitzroy Gardens with its Cooks’ Cottage.
Where to stay in Melbourne for first-time visitors
1. Melbourne CBD
In my opinion, Melbourne CBD is the best place to stay in Melbourne for tourists, especially for first-timers and short-term visitors. This area is the best base for sightseeing, shopping, and nightlife.
In terms of accommodations, Melbourne CBD has options for all budgets. You will have lots of choices to choose from whether you are traveling alone, as a couple, or with children.
In terms of transportations, the CBD is very well connected to trains, trams, and buses. There are several major transport hubs here including the Flinder Street Station, Melbourne Central and Southern Cross Station, which is the terminal of the Airport Skybus.
Additionally, The CBD is well-served by the free circle tram, stopping at popular tourist attractions. You can easily visit major sights on foot and use this free tram. Popular attractions in the CBD include the street art filled laneways, Queen Victoria Market, Chinatown, State Library Victoria, and Fed Square.
With its central locations, you’ll also have easy access to other attractions and activities in Southbank, Dockland, and Fitzroy. The Royal Botanic Gardens Victoria, National Gallery of Victoria, and Melbourne Skydeck are all within walking distance.
In terms of shopping, the CBD has lots of shopping arcades, shopping streets, and malls. The most popular place to shop in the city center is perhaps the pedestrian-friendly Bourke Street Mall. This area is lined with fashion/cosmetic stores and eateries. The street performers are great to watch too.
Just around Bourke Street Mall, you’ll find many shopping and eating opportunities along Elizabeth, Swanston and Collins Street. Shopping arcades like The Block Arcade, Cathedral Arcade, and Royal Arcade are interesting places to explore too.
The CBD has a vibrant nightlife scene, with lots of bars and pubs staying open until early morning. It is a great base for those after a lively nightlife.
In terms of dining, the CBD has all international cuisine no matter your plate. From Italian and Vietnamese to Greek and Chinese, there is alway something for all tastes. There are also many quality cafes in the CBD where you can experience Melbourne coffee culture.
Speaking of food, here are my tips for foodie in Melbourne, head to Fitzroy if you crave for Vegetarian, Latin, or Spanish food; go to Box Hill and Chinatown if you want Chinese food; for Greek meal head to Oakleigh and Lonsdale Street; Springvale and Richmond are known for Vietnamese food; Footscray is known for Ethiopian restaurant; for Italian head to Carlton and Brunswick.
To summarize, Melbourne CBD is the best part of the city for those who want to be in the heart of the action. Whether shopping, nightlife, or sightseeing, The CBD has it all. Most importantly, the CBD has the highest concentration of accommodations, so you’ll have plenty of choices.
Here are my recommended hotels in Melbourne CBD:
Grand Hyatt Melbourne, this is a 5-star luxury hotel located in the heart of the CBD on the famous Collins Street, a quick walk from many places like the Town Hall, St Paul’s Cathedral, MCG, and State Library. Restaurants, shopping streets, and theaters are all nearby. The hotel features modern and spacious rooms and suites with stunning views of the city skyline or Yarra River. The breakfast buffet has a variety of food and the restaurant is nice too.
Rendezvous Hotel Melbourne, this is a 4-star mid-range hotel located in a prime location on Flinder Street, an easy walk to shops, restaurants, theaters, sporting venues, entertainment hubs. It is also convenient to access trams and trains. The Federation Square and the Flinders Street Station are just in front of the hotel. The hotel has comfortable rooms for solo travelers, couples and families. They have beautiful rooms, good food, and a nice breakfast buffet.
The Victoria Hotel, this is a popular 3-star hotel in central Melbourne, on Little Collins Street, only a short walk from Bourke Street Mall and Chinatown, making it a great base for shopping. Additionally, there are a lot of restaurants, cafés, and bars as well as art galleries and museums nearby. Guest rooms are compact, but what can you say? Its location is close to everything, so it’s a win-win.
Space Hotel, this hostel is a great place for backpackers and budget travelers, featuring dorm rooms with shared bathrooms, and shared kitchen. It is very centrally located, only a few mins walk from Melbourne Central Station and Queen Victoria Market. They have a nice rooftop with stunning views of the city.
You can watch my video here:
2. Southbank
Southbank is a convenient place to stay in Melbourne. It is located just south of Melbourne city center, just across the Yarra River. This area is home to a huge entertainment complex, shopping mall, famous art gallery, skyscraper, and large garden.
You can enjoy sweeping views of Melbourne from the observer deck of the city’s tallest building, Melbourne Skydeck. The National Gallery of Victoria has a great collection of artworks of both Australian and international articles. It is muse-see for art lovers and free to enter.
South Bank is home to the Crown Melbourne complex, a major landmark of Melbourne. The building is home to a hotel, a casino, lots of bars, restaurants, and entertainment facilities.
For shoppers, be sure to check out the riverfront DFO South Wharf where you can find all the products at outlet prices. You can find great deals on clothes here. The mall also has a food court, so you can relax when tired of shopping.
The eastern part of Southbank is covered by a massive green space that includes the Alexandra Gardens and Royal Botanic Gardens. They are great for relaxing, taking leisure strolls, picnics, or hanging out with friends and family. The Shrine of Remembrance nearby offers stunning views of the city’s skyscrapers.
Southbank has many 5-star luxury and mid-range hotels and apartments, with spacious rooms, making it a great area for families, couples, or groups of friends.
Overall, Southbank is a great base in Melbourne as it has lots of things to do and see in its neighborhood itself. The CBD is only a short walk away. Additionally, it is well-connected to the tram and bus, so you can easily get around. If you find a good value for money hotel in this area, just go for it.
Here are some of the best hotels in Southbank:
Crown Metropol Melbourne, this is a 5-star hotel, one of the best hotels in Melbourne, conveniently located in Southbank near the Yarra River, only a few mins walk from the Southern Cross Station and Docklands. You’ll have easy access to the Crown Entertainment Complex and the Exhibition Center. They have a fabulous infinity pool, spacious rooms, and outstanding buffet breakfast.
Quay West Suites Melbourne, this is a great apartment-style accommodation for families and groups of friends as it has one, two, three-bedrooms apartments options that can accommodate up to 6 guests. Its location is also very central, on Southgate Avenue, close to the river cruise port, the art precinct, the Sky Tower, and trams. It also has a fully equipped kitchen or kitchenettes, so you can make your own meal.
The Langham Melbourne, a beautiful hotel located along the Yarra River, just only a short walk or tram ride from the city center. It has spacious rooms, a lovely onsite restaurant, bar, and indoor pool. I think it is a good place for a relaxing holiday in central Melbourne.
3. Docklands
Docklands is a great area to stay in Melbourne for its contemporary vibe and easy access to the city center. It is a modern waterfront area located just west of Melbourne CBD and Southern Cross Station. It is home to the Marvel Stadium and many shopping & dining complexes.
The District Docklands is a large open-air shopping mall where you can shop for high-end fashion. If you wander around, you can see many interesting art sculptures. The Library at The Dock is also worth checking out when you are in this area.
Docklands has many hotels and apartments that are centered around the Quay and the waterfront area. You can find spacious rooms for families and groups in this neighborhood.
Here are my recommended hotels in Docklands:
Docklands Private Collection – NEWQUAY, I think this is a great place to stay in Melbourne for families, the apartments with harbor views can accommodate up to 7 family members. Accommodation also comes with a fully equipped kitchen with a dishwasher. It is located in the waterfront area, you can easily explore Dockland on foot and take a free tram nearby to the city center.
Peppers Docklands, this is a great 5-star hotel located in Docklands, very close to Marvel Stadium, and a reasonable walk to most amenities. The hotel has modern facilities, clean rooms, and easy access to the free tram stop right outside.
Melbourne Private Apartments, this is also a great accommodation for families, featuring spacious apartments with stunning views and a kitchen. You’ll also be close to the free tram to get to the CBD.
4. Carlton/ Fitzroy
Carlton/ Fitzroy, located just north of the CBD, don’t have many choices of accommodations compared to the CBD, Southbank, and Docklands, but they are great for multicultural eateries and fun nightlife.
Carlton is the Little Italy area that has a bustling cafe scene and Italian restaurants. Fitzroy is a place to go for vegetarians and vegans. These areas also have many multicultural restaurants serving international food like Vietnamese to Ethiopian.
Lygon and Brunswick Streets are main thoroughfares of these areas, where you can go for a nightlife. They are packed with bars and pubs.
You can find beautiful handmade gifts at the Rose Street Artists’ Market. You can relax at the Carlton Gardens and explore the Melbourne Museum. The beautiful Fitzroy Gardens and Cooks’ Cottage are also within walking distance.
If you choose to stay in the Carlton/ Fitzroy area, I recommend staying at the Zagame’s House. This is because Zagame is a stunning hotel conveniently located on Lygon Street, and within walking distance from most major attractions. You’ll also be close to many nice shops and restaurants.
The Tyrian Serviced Apartments Fitzroy is a also a great choice in Fitzroy. It has free parking and apartmenta with a fully equipped kitchen, which is convenient if you want to make your own meal.
See more:
- 19 Best things to do in Melbourne for tourists
- 10 Best hotels in Melbourne
- 3-5 days in Melbourne Itinerary
Don’t be overwhelmed by many neighborhoods in Melbourne, just set your accommodation budget and stick into the Melbourne CBD, Southbank, Docklands, and Carlton/ Fitzroy, you’ll be good to go.
So, which neighborhoods are you planning to stay in during your first time in Melbourne? Have you found any good hotels? Feel free to comment down below! I’d love to read it!