10 of the Best Hostels in Melbourne

by Allie D'Almo  |  Published March 8, 2021

Frequently heralded as one of the world’s most liveable cities, Melbourne is a popular holiday spot too. The beginning of a well-worn backpacker route that winds from South to North, the cosmopolitan city offers art, sports, shopping, beaches and even landscaped gardens in spades. The second-largest city in Australia is beloved by everyone —gourmands, hipsters, culture vultures and the sports-mad. 

Cosmopolitan Melbourne from across the River Yarra (Photo: Filipe Castilhos via Flickr/ CC BY-ND 2.0)

Just because you’re on a budget, doesn’t mean you have to slum it either. Melbourne is thronging with great-value digs that offer style and substance in some of the city’s best locations, from the edgy eastern suburbs of Fitzroy to the beachside borough of St Kilda. If you’re looking for a budget bolthole in the city,  take a look at ten of our favourite hostels in Melbourne.

Claremont Guesthouse 

A spacious quadruple room at Claremont Guesthouse (Photo: Claremont Guesthouse

Built in 1886, Guesthouse Claremont Hotel blends period charm with contemporary convenience. Visitors can book one of 77 rooms, ranging from 4-bed mixed and single-sex dorms to single, twin and family rooms, all tastefully decorated, with crisp bed linen, fluffy towels and a flat-screen TV. Breakfast is served in the dining room, and there’s also a lounge and library to relax in. Just 130m from South Yarra train station, Claremont is well-connected while being apart from the hustle and bustle of the city centre. The drinking, dancing and dining delights of Chapel Street are just a two-minute stroll away too. Beds from $30, private doubles from $51 per night

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Space Hotel 

Aiming to provide a great experience with a good nights’ sleep, Space Hotel was designed for travellers with thrifty budgets and expensive taste. The hostel-hotel hybrid offers a private cinema, a gym and ‘The Space Deck’, a rooftop retreat with sun loungers and a hot tub. Guests can choose from a range of spacious and secure 4,6 and 8-bed dormitories, or opt for a private room instead, all with flat-screen TVs and iPod docking stations, some with private balconies offering city top views. Style and substance at the heart of the CBD district. Beds from $18, private doubles from $52 per night

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Base St. Kilda

The pillar-box red Base St. Kilda is an iconic local landmark itself (Photo: Base Backpackers St. Kilda)

St Kilda Base Backpackers knows a thing or two about how to party. Offering a dizzying calendar of events, from Big Willy’s Boozy Bingo to Wings and Sings Night to Sunday Funday Beer Pong, this sociable hostel is just as famous for its entertainment as it is for its rooms. The pillar-box red building is located in the beachside borough of St Kilda, famous for its creative community spirit. Guests can choose from a range of mixed and female-only dormitories, some with private balconies too. Days here start with free pancakes and inevitably end in the basement club, the thumping Red Eye Bar.  Beds from $27, private doubles from $40 per night

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South Yarra Hostel 

Another offering from this increasingly popular southeastern suburb, South Yarra Hostel boasts some of the most spacious dorm rooms in the city, moments from the Toorak shopping strip. Guests have a choice of 2,3 and 4-bed dorm rooms, all with wardrobes, secure boxes and private bathrooms. There’s a roomy communal kitchen, with three large refrigerators and two ovens, as well as barbeque facilities too. For quieter evenings, a large lounge area offers a 142-cm TV screen with a diverse collection of DVDs. Beds from $24, private doubles from $35

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Landing Pads Brunswick 

Landing Pads Brunswick feels more houseshare than a hostel (Photo: Landing Pads Brunswick)

For visitors looking to stay in Melbourne for longer than a few days, Landing Pads Brunswick is ideal. Located in Brunswick, a suburb six kilometres north of Melbourne city centre, this friendly hostel was designed with working travellers in mind. Helpful services, like job seeker tutorials and local job contacts, are free and available to all visitors, while the seven-night minimum stay policy encourages guests to get to know each other. There’s no on-site bar, but there is a well-equipped kitchen, BBQ area and covered terrace. Guests can choose from a range of 6,8 and 10-bed dorm rooms, some with small private balconies. Beds from $18

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College Lawn 

Best-known for its boho vibes and gourmet credentials, Prahran is a trendy southeastern suburb in Melbourne — and College Lawn is situated slap-bang in the middle of it. It’s less a hostel, more a pub with top-notch rooms, but there’s not a sticky floor insight. Guests can choose from two three-bed rooms and seven private rooms. The larger private rooms feature king-size beds, a sitting nook with a big comfy armchair and a console table desk. Outside of sleeping, guests can enjoy free rein of the lounge bar, restaurant, courtyard and beer garden. Beds from $21, private doubles from $44

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The Nunnery

The Nunnery is brimming with period charm (Photo: The Nunnery)

Contemporary chic meets 19th-century convent at The Nunnery, in Fitzroy. Built in 1888, the hostel is split into two parts. The ‘Budget Building’ provides traditional backpacker accommodation, ideal for travellers who don’t want to pay for what they won’t use. Seven dorms sleep between two and twelve people, with three spotless bathrooms between them. If there’s a group of you, and you’d prefer a plusher stay, take a look at the two-storey self-contained guesthouse. Its six beautiful bedrooms, lounge area and courtyard are brimming with period charm, all polished hardwood floors, marble fireplaces and hand-turned staircase bannisters. Beds from $30, private doubles from $58

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The Village Melbourne

The latest outpost of millennial favourite, The Village, opened in Melbourne in 2019. Located right in the thick of the action at the edge of CBD, this hip hostel is a short walk from a remarkable range of bars, clubs and restaurants. It also hosts regular events – most of them free – at its underground nightclub and bar. Rooms are mostly dormitory-style, ranging from intimate 4-beds to mammoth 18-beds, and there’s also one cosy private available. A cheerful reception desk is available 24/7 to help with holiday planning and there are chill-out areas on each floor, with free pool, table tennis and board games for downtime. Beds from $22, private doubles from $79

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The Mansion Melbourne

The turreted Mansion Hostel (Photo: The Mansion Melbourne)

The Mansion Melbourne is an aptly named, castle-like hostel in the city’s artsy inner-city suburb, Fitzroy. There are 14 rooms to choose from, ranging from private doubles to 4,5,6 and 7-bed dormitories. Pillows are plump and mattresses are top-quality, promising a sound night’s sleep regardless of whether you’re sharing. The former Salvation Army building is bounding with character, from an original double staircase to retro 1960s tiling. There’s also a communal lounge, a sun-filled courtyard, co-working spaces and an onsite cafe, The Salvation, offering free tea and coffee all day.  Beds from $35, private doubles from $65 per night

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United Central Backpackers 

Conveniently located opposite Flinders Street Station, United Backpackers is a short stroll from Melbourne’s best-loved sights. Inside it’s a riot of personality, with kooky furnishings and graffiti-lined walls. Dorm rooms and private rooms are sleek, if sparsely decorated compared to the rest of the building, operated by a secure card system. There are free pancakes for breakfast and a communal kitchen for those who prefer to cook their own meals. The Lost and Found Bar is a sultry, speakeasy bar in the building’s basement, and for quieter nights, guests can pull up a bean bag and catch a movie in the large living room. Beds from $18, private doubles from $55 per night

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