Melbourne's best cheap hotels for those on a budget

Located on Collins Street, just a short walk from Flinders Street Station and the Yarra River, the Victorian architecture of this charming hotel houses heaps of leisure facilities. Enjoy dinner and drinks at the in-house restaurant and bar, work out in the fitness centre and pool or relax in the sauna. Each apartment features an en suite bathroom, cable TV, cooking facilities and a dishwasher, and some rooms feature a private balcony.

Time Out tip: If you're keen on exploring some of Melbourne's best attractions, this stay will put you within walking distance of fun Melbourne attractions like the Sea Life Aquarium, Marvel Stadium and Crown Melbourne.

Address: 480 Collins St, Melbourne VIC 3000

Closest transport link: Flinders Street Station is a short walk from the hotel.

Price: From $149 per night.

Mood? Bright and airy.

This boutique hotel is tucked away down Little La Trobe Street, just a short walk from the State Library and Queen Victoria Market. Shop at nearby shopping centres like QV and Melbourne Central, explore the abundance of restaurants and bars at your doorstep and then head back to your cosy room that's fitted out with a comfy bed, flatscreen TV and large walk-in shower. 

Time Out tip: Planning a city trip with your whole family or a catch-up with old friends? Book in for one of the two-bedroom apartments complete with full kitchens, two bathrooms and a spacious outdoor terrace.

Address: 30 Little La Trobe St, Melbourne VIC 3000

Closest transport link: Melbourne Central Railway Station is a two-minute walk from the hotel.

Price: From $139 per night.

Mood? On-trend luxury. 

Going off the cost, you'd expect the Atlantis Hotel to lack in frills. But in reality, the premises include luxe amenities like a heated indoor swimming pool and a well-equipped fitness centre, and all rooms are fitted out with flat-screen TVs. If you're not too sure what to do whilst in the city, chat with the tour desk in the lobby to get recommendations on local attractions and travel ideas.

Time Out tip: Looking for a place to stay the night before an early regional train ride, or an overseas trip? You'd be hard-pressed to find a closer stay to Southern Cross Station that's as reasonably priced as this. If you're stressed about missing your alarm, ask the front desk for its wake-up service.

Address: 300 Spencer St, Melbourne, VIC, 3000

Closest transport link: Southern Cross Station is a five-minute walk from the hotel.

Price: From $135 per night.

Mood? Clean and convenient. 

You won't find many better-located hotels in Melbourne, with Ibis Melbourne Central on Little Lonsdale between Elizabeth and Queen. It's an easy walk to the best of Melbourne, with the Princess Theatre, St Paul's Cathedral, Federation Square and all the fantastic restaurants of Hardware Lane within easy walking distance. The rooms are small, but they are clean and comfortable.

Time Out Tip: Melbourne’s beloved laneways are within super easy walking distance.

Address: 399 Little Lonsdale St, Melbourne, VIC, 3000

Closest transport link: Melbourne Central Station is a three-minute walk from the hotel.

Price: From $108 per night

Mood? Simple and modern. 

Footscray has come a long way, baby. The gentrification of this creative, multicultural hub may be causing friction, but the Plough Hotel is part of the solution. Part restaurant, part bar, part hotel, this multitasking space was established way back in 1868, but came back on the scene after a heritage-friendly refurbishment in 2013. Above the restaurant and bar, 11 boutique rooms with private en-suite bathrooms provide a minimalist yet comfortable space for guests to retreat to. 

Time Out tip: Known for serving some of the best steaks in the west, guests can head downstairs to the Plough Hotel restaurant to savour grass-fed beef at its finest. Vegetarians are well taken care of too, with plenty of meat-free options on the menu and vegan cheese available on all pizzas.

Address: 333 Barkly St, Footscray VIC 3011

Closest transport link: Middle Footscray Station is a five-minute walk from the hotel.

Price: From $154 per night.

Mood? Stripped-back, but all you need. 

If you want to stay central, but you don't want to pay the price, you're going to have to settle for a hostel. Thankfully, YHA Melbourne Central is a really good one. For starters, you can forget sharing a dorm – unless you want to – as here they have private doubles with balconies, en suites and coffeemakers (depending on which price tier you opt for). There's space to hang out on the roof, with open and covered seating areas, there's a cafe/bar in the building and a kitchen/dining area.

Time Out tip: One of the best things about YHA Melbourne Central is the rooftop space, perfect for communal barbecues or chilling in the sun with a good book.

Address: 562 Flinders St, Melbourne VIC 3000

Closest transport link: ​​Flinders Street Railway Station is practically on your doorstep.

Price: From $78 per night

Mood? Laid-back and sociable.

Walk this way, jazzheads. Having opened in Melbourne in early 2017, the Jazz Corner pays homage to the greats: think Coltrane, Davis, Parker. It promotes the newbies too, with regular live gigs in the basement bar. The rooms are all self-contained studios or two-bed apartments, decked out in leather, wood, cool blues and LP sleeves on the walls. While there are kitchens in the apartments, you can order room service too, then chill in front of the TV in the living room with your meal, or admire the view.

Time Out tip: With Bird’s Basement jazz club located just below the hotel, fans of funk, blues, jazz, swing, big band and bebop will love staying so close to the action. 

Address: 352 William St, Melbourne VIC 3000

Closest transport link: Flagstaff Railway Station is a minute’s walk from the hotel.

Price: From $191 per night.

Mood? Soulful speakeasy vibes.

A historic Melbourne landmark dating back to the late 1800s, the Victoria Hotel is now under the Rydges umbrella. An on-site bar, restaurant, fitness centre, plunge pool, spa and sauna make this 3.5-star property an incredible find, considering its highly sought-after Little Collins Street location. Attracting down-to-earth types, this hotel’s affable staff make it a pretension-free zone.  

Time out tip: With the Regent Theatre, Athenaeum Theatre, Capitol Theatre and Melbourne Town Hall all a short walk away, this hotel is a top spot for theatregoers to nab low cost accommodation near some of Melbourne’s leading performance venues.

Address: 215 Little Collins St, Melbourne VIC 3000

Closest transport link: Flinders Street Station is a seven-minute walk from the hotel.

Price: From $118 per night.

Mood? Dramatic and luxurious.