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My Favorite Hostels in Melbourne: Top Picks for Budget Travelers



Melbourne, Australia’s cultural capital, is an incredible city for backpackers, digital nomads, and travelers who want to soak up the artsy vibes, trendy neighborhoods, and vibrant nightlife. With its world-class coffee, iconic street art, and endless activities, it’s no wonder Melbourne tops many travel bucket lists. But don’t let the reputation for being a bit pricey deter you—there are some fantastic budget-friendly hostels that offer comfort, convenience, and great opportunities to meet other travelers.

Here are my top picks for hostels in Melbourne that deliver an awesome stay without emptying your wallet.


1. Queen Victoria Hostel


Why I Love It:


If you want to stay in a lively area surrounded by some of Melbourne’s top attractions, Queen Victoria Hostel is the perfect place to be. Located just a stone’s throw from the famous Queen Victoria Market, this hostel gives you easy access to incredible food, culture, and the city's unique flair. The rooms are cozy, clean, and the atmosphere is welcoming for solo travelers or groups. Whether you're checking out the local markets, heading to Federation Square, or planning a day trip, this hostel offers a great location for exploring the heart of Melbourne.


Highlights:

  • Convenient location near Queen Victoria Market and public transport.

  • Comfortable rooms with a friendly, social atmosphere.

  • Great for travelers looking to explore central Melbourne.



2. South Yarra Hostel


Why I Love It:


Located in the chic neighborhood of South Yarra, this hostel gives you a quieter, upscale vibe while still being close to Melbourne’s best spots. South Yarra Hostel is perfect for travelers who want a peaceful stay but also want access to great cafes, parks, and the shopping strip on Chapel Street. The nearby Royal Botanic Gardens offer a beautiful escape from the city buzz, while the easy access to public transport means you’re never far from the action. The hostel itself is modern, clean, and has all the amenities you need for a comfortable stay.


Highlights:

  • Upscale location in South Yarra with access to cafes and shops.

  • Close to the Royal Botanic Gardens and great public transport links.

  • Ideal for travelers seeking a quieter, more refined stay in Melbourne.



3. Carric Hostel


Why I Love It:


Carric Hostel is a gem for budget travelers who want to stay central but don’t want to pay sky-high accommodation prices. Located in a trendy area near some of Melbourne’s coolest bars, cafes, and art galleries, this hostel is perfect for culture vultures. The vibe here is relaxed and social, with plenty of communal spaces to meet fellow travelers. The dorm rooms are clean and simple, making it a great place to recharge after a day exploring the city.


Highlights:

  • Located in a trendy area with easy access to bars, cafes, and galleries.

  • Affordable dorm rooms with a laid-back social atmosphere.

  • Great for culture lovers who want to stay in a vibrant part of Melbourne.


Book Here: Carric Hostel


4. Swanson St Town Hall View Homestay Hostel


Why I Love It:


For travelers looking for a homestay experience in the heart of Melbourne, Swanson St Town Hall View Hostel is a perfect choice. This hostel offers incredible views of Town Hall and is just a short walk from some of Melbourne’s iconic landmarks like Federation Square and Bourke Street Mall. The rooms are comfortable, and the staff makes you feel right at home, offering insider tips on the best local spots to check out. The central location makes it easy to explore the city’s laneways, iconic street art, and vibrant nightlife.


Highlights:

  • Fantastic central location with views of Town Hall.

  • Homestay vibe with a welcoming and cozy atmosphere.

  • Perfect for travelers who want to stay in the heart of the action.




5. LiliHostel


Why I Love It:


LiliHostel is a hidden gem for budget travelers who want a mix of comfort, affordability, and convenience. Located in a quieter part of the city, this hostel offers easy access to public transport, making it simple to explore Melbourne’s main attractions. The rooms are cozy, clean, and well-maintained, while the communal areas are great for meeting fellow travelers. LiliHostel is ideal for those who want to balance a laid-back stay with easy access to Melbourne’s bustling city life.


Highlights:

  • Comfortable and clean with a laid-back vibe.

  • Convenient access to public transport for exploring Melbourne.

  • Great for travelers seeking a peaceful stay with affordability in mind.


Book Here: LiliHostel


Final Thoughts


Melbourne is a city that has something for every type of traveler, whether you're here for the art, culture, coffee, or nightlife. These hostels offer budget-friendly options in different parts of the city, so no matter your travel style, you’ll find the perfect place to rest your head after a day of exploring.

Happy traveling in Melbourne!


 

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Hi! I'm Jill, a passionate business enthusiast, lifestyle and travel writer, and best-selling author. I've dedicated my career to teaching people how to travel on a budget.

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