Budget accommodation options can be found in two main areas, namely the city centre and St Kilda. However, outside these two areas there are also several popular budget options in Fitzroy, South Melbourne and Windsor. During event times (Australian Open, Grand Prix, Melbourne Cup etc.) the hostels usually get full so book ahead.

• Melbourne Central YHA An oasis in a bustling city. No bunk beds, sunny gazebo garden, $2 pancake breakfasts and weekly activities.
• Greenhouse Backpacker It's good value in a great location in Flinders Lane in the city - all you want from a backpackers really! Dorm beds from $30 a night and double rooms from $80.
• All Nations Backpackers Hostel City location with dorm beds from $19, single $38, double $48 and 24-hour reception.
• Base Backpackers If you like the fact there's a bar downstairs, want to party and are under 30, this is the backpackers for you. It's lots of fun but don't expect a quiet resting holiday. It's in St Kilda.
• Habitat HQ A relaxed backpackers in St Kilda with dorm beds from $30 a night and motel style rooms from $109. The dorms are spacious and the staff friendly, and they have excellent facilities, including free linen, breakfast, WiFi and parking. It's a winner!
• Chapel Street Backpackers In a good locale right in Windsor, dorm beds are from $28.
• Fraser Place Melbourne Modern semi self-contained apartments in the city center from $139 a night, which is very good value for what you get. Also the rates are cheaper if you book two months in advance, but you can't cancel.

Some options that require more cash...

• The Blackman A stunning modern five-star luxury hotel, named for artist Charles Blackman, built within and above the historic Airlie Mansion. Rooms start from about $180 and it's just a short tram ride from the city down St Kilda Rd.
• The Como Melbourne This chic hotel is located on Chapel Street, South Yarra, with rooms from $255 a night.
• Citigate Melbourne Your standard large city hotel, good service, clean etc. It's opposite Flinders Street Station with rooms from $169 a night.
• Citadines on Bourke Melbourne Located in the heart of the city, these modern self-contained apartments are great value for about $180 a night.
• The Langham Melbourne Hotel An opulent, fancy Southbank hotel. Rooms are from $229, but it's worth the money.
• Alto Hotel on Bourke This charming, award winning boutique hotel in Melbourne’s heart is proudly environmentally friendly with rooms starting at around $150.
• Crown Towers Right on Southbank above the casino, this hotel has a great position and good service too. Rooms are from $260 a night.