What is the best budget hotel in Melbourne? Our top pick is The Victoria Hotel. This historic hotel in Melbourne’s CBD offers excellent value with modern features like a pool, fitness centre, and on-site bar. It’s a short walk to top attractions like the Regent Theatre and Melbourne Town Hall, making it ideal for travellers who want comfort and location without overspending.
But there’s more. Melbourne has plenty of budget-friendly hotels offering clean rooms, great locations, and practical amenities. Below, we’ve listed the best affordable stays to help you enjoy Melbourne while staying on budget.
1. The Victoria Hotel
Why It’s Great:
The Victoria Hotel combines historic charm with modern comforts. Guests can enjoy a fitness centre, on-site bar, and pool while staying close to everything Melbourne has to offer.
Nearby Highlights:
- See a show at theRegent Theatre.
- Grab a coffee or snack at the cafes along Little Collins Street.
Pros & Cons:
- Pros: Central location, great value, and close to theatres.
- Cons: Can get noisy on weekends.
Solution: Request a room away from the street for a quieter stay.
Best For: Couples, theatre lovers, and weekend stays.
Address: 215 Little Collins Street, Melbourne VIC 3000
2. Great Southern Hotel Melbourne
Why It’s Great:
Located next to Southern Cross Station, this hotel is convenient and affordable. Rooms are clean and simple, perfect for travellers who want a budget-friendly place to sleep.
Nearby Highlights:
- Visit theCrown Entertainment Complex for dining and entertainment.
- Shop for bargains at DFO South Wharf or walk along the Yarra River.
Pros & Cons:
- Pros: Budget-friendly rates and excellent transport access.
- Cons: Rooms are small for long stays.
Solution: Ideal for short trips or solo travellers.
Best For: Solo travellers, short stays, and visitors using public transport.
Address: 44 Spencer Street, Melbourne VIC 3000
3. Atlantis Hotel Melbourne
Why It’s Great:
Atlantis Hotel delivers budget-friendly comfort with extras like a heated indoor pool, gym, and spacious rooms. It’s close to Southern Cross Station, offering easy access to trams, trains, and airport transfers.
Nearby Highlights:
- Walk toMarvel Stadium for sports or events.
- Visit Docklands and explore the Harbour Town precinct for shopping and dining.
Pros & Cons:
- Pros: Heated pool, spacious rooms, and excellent transport connections.
- Cons: Limited dining options nearby.
Solution: Head to Docklands for affordable food courts and cafes.
Best For: Families, fitness lovers, and event attendees.
Address: 300 Spencer Street, Melbourne VIC 3000
4. Brady Hotels Central Melbourne
Why It’s Great:
Brady Hotels offers a modern, boutique experience at an affordable price. Rooms are stylish, clean, and equipped for short or extended stays.
Nearby Highlights:
- Shop atMelbourne Central or grab a snack at nearby cafes.
- Visit the Queen Victoria Market for local produce and unique finds.
Pros & Cons:
- Pros: Modern design, central location, and excellent cleanliness.
- Cons: Rooms can feel small for families.
Solution: Book a2-bedroom apartment for more space and comfort.
Best For: Couples, small groups, and city explorers.
Address: 30 Little La Trobe Street, Melbourne VIC 3000
5. ibis Budget Melbourne CBD
Why It’s Great:
ibis Budget Melbourne CBD offers clean, basic rooms in a prime location. It’s perfect for travellers who want to save money and stay close to Melbourne’s top attractions.
Nearby Highlights:
- Enjoy the cafes and dining options on Hardware Lane.
- Shop at Bourke Street Mall or visit Federation Square for city events.
Pros & Cons:
- Pros: Central location, affordable pricing, and good value for money.
- Cons: Rooms are small with basic features.
Solution: Ideal for travellers who spend most of their time exploring the city.
Best For: Backpackers, solo travellers, and budget-conscious visitors.
Address: 97-103 Elizabeth Street, Melbourne VIC 3000
6. City Centre Budget Hotel
Why It’s Great:
City Centre Budget Hotel offers clean, compact rooms with a homely feel. It’s a great choice for travellers wanting simple, affordable accommodation close to Melbourne’s attractions.
Nearby Highlights:
- Stroll through Parliament Gardens for fresh air.
- Enjoy late-night dining in Chinatown.
- Use the free trams for quick city travel.
Pros & Cons:
- Pros: Affordable rates, reliable Wi-Fi, and central location.
- Cons: No lift access to upper floors.
Solution: Request a ground-floor room when booking.
Best For: Solo travellers, couples, and budget-conscious visitors.
Address: 22 Little Collins Street, Melbourne VIC 3000
7. YTI Garden Hotel
Why It’s Great:
YTI Garden Hotel is an affordable choice with practical amenities. Its central location puts you close to Melbourne’s best shopping, dining, and laneway cafes.
Nearby Highlights:
- Shop atMelbourne Central Shopping Centre.
- Visit the State Library of Victoria for its stunning architecture.
- Discover hidden cafes on Little Bourke Street.
Pros & Cons:
- Pros: Budget-friendly, effective air-conditioning, and close to shops.
- Cons: Rooms are dated.
Solution: Best for short stays focused on convenience.
Best For: Backpackers, solo travellers, and shoppers on a budget.
Address: 378 Little Bourke Street, Melbourne VIC 3000
8. Mercure Welcome Melbourne
Why It’s Great:
Mercure Welcome Melbourne offers affordable accommodation with excellent service. Guests love the convenient location and the hotel’s great-value breakfast.
Nearby Highlights:
- Dine inChinatown for vibrant food experiences.
- Shop at Emporium Melbourne and Bourke Street Mall.
- Watch a show at the Princess Theatre.
Pros & Cons:
- Pros: Delicious breakfast, clean rooms, and central location.
- Cons: Small bathrooms.
Solution: Upgrade to a larger room for extra comfort.
Best For: Families, couples, and shoppers.
Address: 265 Little Bourke Street, Melbourne VIC 3000
9. Travelodge Hotel Melbourne Docklands
Why It’s Great:
Travelodge Docklands offers spacious, modern rooms at a reasonable price. It’s a quiet option located near transport hubs and key Docklands attractions.
Nearby Highlights:
- Visit Marvel Stadium for events and sports.
- Explore the Docklands waterfront and Harbour Town Shopping Centre.
- Take free trams to Melbourne CBD in minutes.
Pros & Cons:
- Pros: Quiet location, clean rooms, and easy access to public transport.
- Cons: Further from central Melbourne.
Solution: Use the free trams for quick and cheap travel.
Best For: Families, business travellers, and sports fans.
Address: 66 Aurora Lane, Docklands VIC 3008
10. Miami Hotel Melbourne
Why It’s Great:
Miami Hotel Melbourne offers excellent value for money with clean, no-fuss rooms. Its quiet location near the CBD makes it ideal for travellers looking for affordable stays away from city noise.
Nearby Highlights:
- Shop for fresh produce and souvenirs at Queen Victoria Market.
- Relax at Flagstaff Gardens, Melbourne’s oldest park.
- Discover local cafes and dining options in North Melbourne.
Pros & Cons:
- Pros: Quiet area, friendly staff, and good value for money.
- Cons: Basic decor and amenities.
Solution: Perfect for travellers who prioritise location and budget over luxury.
Best For: Families, budget-conscious travellers, and those seeking a quiet stay.
Address: 13 Hawke Street, West Melbourne VIC 3003
Conclusion
Finding affordable accommodation in Melbourne is easy with these 10 best cheap hotels. Each option provides great value, clean rooms, and convenient locations near attractions, dining, and public transport.
Whether you’re visiting Melbourne for a family trip, weekend getaway, or business stay, there’s a budget-friendly hotel to suit your needs. Start exploring Melbourne today—comfort, savings, and adventure await!
What’s Next?
Check out our previous article on the best restaurants in Melbourne for a guide to the city’s top dining spots, from trendy cafes to award-winning eateries.
Next up, we’ll be sharing the top things to do in Melbourne, highlighting must-visit attractions, unique activities, and hidden gems that make the city so special.
Frequently Asked Questions
What are the best budget hotels in Melbourne near public transport?
The best budget hotels near public transport include The Victoria Hotel, close to trams and Flinders Street Station, and Great Southern Hotel, next to Southern Cross Station. Travelodge Hotel Docklands is ideal for quick tram access. These hotels are located in Melbourne CBD, making it easy to visit attractions like Federation Square and Queen Victoria Market using the free tram zone.
Do budget hotels in Melbourne offer free parking options?
Free parking is rare at budget hotels in Melbourne CBD. Miami Hotel Melbourne in West Melbourne offers affordable on-site parking. Hotels like Travelodge Docklands and Atlantis Hotel provide discounted parking deals nearby. If free parking is essential, look for hotels outside the CBD with access to public transport. Always confirm parking availability when booking, as spaces can be limited.
Which budget hotels in Melbourne are best for families?
Top budget hotels for families include Atlantis Hotel Melbourne and Brady Hotels Central Melbourne, which offer spacious rooms. The Victoria Hotel provides family-friendly accommodation close to attractions. Miami Hotel Melbourne is another good option with its quiet setting and friendly service. These hotels offer amenities like Wi-Fi, kitchenettes, and easy access to Melbourne’s popular sites, ensuring a comfortable stay for families.
How can I save money when booking a budget hotel in Melbourne?
To save money, book your stay early and avoid weekends or peak seasons. Use comparison websites to find deals on hotels like ibis Budget Melbourne CBD and City Centre Budget Hotel. Look for discounts on longer stays or packages with breakfast included. Staying near Melbourne’s free tram zones can also reduce transport costs. Sharing rooms or booking apartments is a great option for families or groups to save more.
Are there budget hotels in Melbourne with breakfast included?
Yes, some budget hotels offer breakfast options at great value. Mercure Welcome Melbourne is known for its affordable, quality breakfast. Travelodge Docklands serves an affordable buffet to start the day. ibis Budget Melbourne CBD also provides a basic, filling breakfast option. Breakfast-inclusive stays save time and money, making it easier to start your day early and explore Melbourne’s attractions.
