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The 11 Best Hostels in Melbourne

Melbourne is ideal for budget travellers
Melbourne is ideal for budget travellers | © Gerardo Borbolla / Alamy Stock Photo
Melbourne is Australia’s most fashionable city (sorry, Sydney), and the style even extends to its budget accommodation. Buzzing bars, on-site cinemas, scenic street art… backpackers are spoiled for choice by these 11 top hostels in Melbourne.

Situated at the starting point of the well-worn backpacker trail that stretches all the way up Australia’s East Coast to tropical North Queensland, Melbourne is a must-visit destination for budget travellers. And with a crop of top-rated hostels sprinkled around the city, backpackers don’t have to sacrifice comfort to stretch their savings. From party places to converted convents, this is Culture Trip’s pick of the best hostels in Melbourne.

Melbourne Central YHA

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Melbourne Central YHA
The options at Melbourne Central YHA include exclusive rooftop private rooms | Courtesy of Melbourne Central YHA / Booking.com
Australia’s largest hostel network transformed the five-storey Markillie’s Hotel in 2009, retaining the building’s century-old neo-Baroque facade but adding 208 beds across an array of modern dorms, twin and double shares, along with exclusive rooftop private rooms. Sitting near the intersection of Flinders and Spencer streets between Southern Cross station and the Yarra River, Melbourne Central YHA offers a travel desk to book tours, a comfy lounge, a fully equipped kitchen with free rice and pasta, heating in winter and air con in summer, and a rooftop terrace with a barbecue, sunloungers and lofty skyline views.
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United Backpackers

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United Backpackers
United Backpackers is HostelWorld’s top-ranked Melbourne accommodation | Courtesy of United Backpackers / Booking.com
No Melbourne hostel earns reviews quite as impressive as United Backpackers, an über-contemporary property directly opposite Flinders Street Station. The personality of Melbourne’s graffiti-lined laneways infuses the halls that link United’s sleek dorms and private rooms, with street-art-inspired murals splashed across the walls. The unbeatable address, buzzing atmosphere, cosy chill-out spaces with beanbags galore, city tours every morning, free pancake breakfast in the huge kitchen and nightly events in the Lost & Found basement bar are other highlights of HostelWorld’s top-ranked Melbourne accommodation.
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Base St Kilda

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Base St Kilda
Base St Kilda offers a packed calendar of events | Courtesy of Base St Kilda / Hostelworld.com
Party animals, look no further. Base’s crowded calendar of events is what makes this place tick, especially at the pumping Red Eye Bar – check out Big Willy’s boozy bingo, Wings and Sings chicken and music night, Fat Friday DJs, Sunday Funday beer pong… the list goes on. Occupying a purpose-built bright red building just a stroll from Acland Street, the Esplanade and Luna Park in the beachside borough of St Kilda, Base features state-of-the-art amenities, free pancakes for breakfast, a travel guru to book tours and a range of mixed and female-only dorms plus privates with their own balconies.
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The Nunnery

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The Nunnery
The Nunnery features architectural details of the 19th-century edifice in which it is located | Courtesy of The Nunnery / Hostelworld.com
A three-storey Georgian home built in 1888, the Nunnery housed the Daughters of Charity for 60 years before welcoming a slightly rowdier group of people – backpackers – through its doors in more recent times. The three- to 12-bed dorms are simple but exude 19th-century charm. The well-worn floorboards, eclectic decor, grand staircase, stained-glass windows and quirky religious artworks remind guests of the building’s former life. Perched on the northeast corner of Carlton Gardens amid the cafés, bars and boutiques that make Fitzroy Melbourne’s hipster hub, the Nunnery’s centrepiece is a leafy courtyard to hang out in.
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Space Hotel

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Space Hotel shows off some of Melbourne’s most luxurious budget beds – the dorms all include personal reading lights, power points and partitions between bunks, while the private rooms boast LCD TVs, iPod docking stations, desks, wardrobes and bar fridges – as well as a bar and restaurant, gym, game room, cinema and rooftop retreat kitted out with a Jacuzzi. This backpacker hotel is also ringed by some of Melbourne’s top attractions, including Queen Victoria Market to the west, Chinatown to the south, Carlton Gardens’ Royal Exhibition Building to the east and Italian food haven Lygon Street to the north, thanks to an enviable Russell Street address on the northern edge of the city centre.
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Habitat HQ

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Habitat HQ
Habitat HQ is Melbourne’s first carbon-neutral hostel | Courtesy of Habitat HQ / Booking.com
Welcome to Melbourne’s very first carbon-neutral hostel. Habitat HQ offsets all its emissions, composts all food waste, uses no plastic bottles, volunteers to clean up the Little Penguin colony in Port Phillip Bay, maintains its own beehives and invites guests to contribute $1 towards its donations to promote green initiatives. This property is as good for backpackers as it is for Mother Nature, with colourful dorms and private rooms, a courtyard bar, an herb garden, gleaming bathrooms, a fireplace, free tea and coffee all day in the kitchen and a convenient St Kilda Road location, a 20-minute tram ride from the middle of the city.
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Nomads All Nations

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Nomads All Nations
Nomads All Nations offers great bang for the bunk in central Melbourne | Courtesy of Nomads All Nations / Booking.com
Nomads All Nations is the quintessential backpacker hostel. Communal kitchen? Check. Lazy TV room? Check. Rowdy downstairs bar? Check. But the price is the one thing that sets it apart, putting on the best-value bunks in Melbourne’s city centre. Breathing new life into a 100-year-old heritage building on the doorstep of Southern Cross station, Nomads offers spacious dorms with high ceilings and hardwood floors, a helpful travel desk, and nightly events in the bar to meet other travellers. There’s a second location in St Kilda, too.
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Melbourne Metro YHA

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Melbourne Metro YHA
Melbourne Metro YHA offers great amenities like a rooftop terrace with panoramic views and fitness classes | Courtesy of Melbourne Metro YHA / Booking.com
Not far from the Queen Victoria Market, in a quiet corner of North Melbourne, Melbourne Metro YHA is perfect for backpackers wanting to escape the hustle and bustle of the city centre or the party scene of St Kilda. This hostel delivers all the top-drawer amenities YHA is renowned for – a quality kitchen, launderette, lounge, dining room, cinema and super-knowledgeable staff – as well as a few glam touches like the rooftop terrace with panoramic city views, wine-and-cheese movie nights, plus weekly yoga, body combat and Zumba classes on the rooftop.
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Claremont Guesthouse

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Claremont Guesthouse
Claremont Guesthouse is located in upscale South Yarra | Courtesy of Claremont Guesthouse / Hostelworld.com
Cashed-up South Yarra isn’t where most budget travellers would look for cheap accommodation in Melbourne, but the Claremont Guesthouse is a bargain in one of the city’s most exclusive postcodes. One block from South Yarra railway station and two blocks from the retail haven that is Chapel Street, this Victorian guest house has offered great-value rooms on the prestigious Toorak Road since 1886. A grand heritage staircase leads to 77 compact rooms across three floors, including a selection of affordable privates as well as basic dorms.
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Pint on Punt Backpackers

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Pint on Punt Backpackers
The rooms at Pint on Punt Backpackers are bright and cheerful | Courtesy of Pint on Punt Backpackers / Hostelworld.com
Sitting on top of the Windsor Alehouse on Punt Road, south of the CBD and walking distance from St Kilda, this hostel is never short on new drinking buddies. Pint on Punt offers food and drink specials in the trendy bar downstairs, plus events like wine-and-cheese evenings, trivia quizzes and open-mic nights with free pints for those brave enough to get on stage. The rooms – twins, doubles and small three-, four- and six-bed dorms – are bright and cheery, while there’s also free breakfast, a lively common room, and kitchen and laundry facilities.
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Home at the Mansion

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Home at the Mansion
Home at the Mansion is housed in an ornate building | Courtesy of Home at the Mansion / Hostelworld.com
This former Salvation Army training college looks more like a castle than a hostel, but Home at the Mansion has welcomed backpackers through its doors since 2010. Situated just north of Victoria’s Parliament House on the eastern edge of the city, this ornate structure contains a selection of great-value four-, five-, six- and seven-bed dorms plus double-bed privates, as well as a sun-drenched courtyard, DVDs and a PlayStation, free tea and coffee and the bubbly Victoria’s Secret café-bar.
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This is an updated version of a story created by Monique La Terra.