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 less keen on a staycation and keener 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. 

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. 

At around $120 per night, we'd understand if you'd expect the Atlantis Hotel to be a bit no 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 this reasonably priced. If you're stressed about missing your alarm, ask the front desk for its wake-up service.  

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 just metres away from all the fantastic restaurants of Hardware Lane. The rooms are small, but they are clean and comfortable.

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, not the problem. 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. With rooms available from $120 per night, this could just be one of Melbourne’s best accommodation deals. 

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.

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 nice hostel, if basic. 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.

Thanks to a 2016 refurbishment, this stylish bolthole is perfect for making the most of the St Kilda beach locale. With the Palais Theatre, Luna Park and Ackland Street cafes and bars just around the corner, this apartment hotel is close to all the local action. Expect to share the space with guests from all corners of the world, collectively keen on experiencing the bayside charms of St Kilda. 

Time Out tip: A win for groups or families, the roomy two bedroom apartments offer a kitchen, lounge area and plenty of space to spread out for when you feel like staying in for the night.    

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.  

A historic Melbourne landmark dating back to the late 1800s, the Victoria Hotel is now under the Rydges umbrella. An onsite 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.