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11 BEST Hostels in Melbourne (2023)

Choosing the best hostels in Melbourne is not easy!

There are so many hostels in the city, that coming up with a definitive list is a massive challenge.

I stayed in a lot of backpacker accommodation during my time in the city. Some hostels ranged from the fantastic to the shambolic.

Unfortunately, this is often the case in big cities. The hostels compete with each other to offer low prices to entice backpackers.

What can happen in this scenario, is that the quality of these hostels suffers.

Thankfully, for you, the reader, I stayed in enough hostels when I went to visit Melbourne, so I have a good idea of which ones you should stay at.

Without further ado, let’s get into the nitty-gritty of the best cheap accommodation in Melbourne!

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Best Hostels in Melbourne

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Base St Kilda

Prices: Dorms from $26; Privates from $99 | Location: St Kilda

Base St Kilda
Image Credit: © Base St Kilda

If you want to stay at a Melbourne hostel by the beach, then Base St Kilda is the place for you!

The facilities here a top-notch with spacious rooms and a bar area downstairs. You’re also close to the beach and Melbourne city centre is only a tram ride away.

One of the best things about Base Backpackers St Kilda is the nightly and weekly activities. These include Yoga, Quiz night and Pub crawls. Base is a great place to meet people if you’re backpacking in Australia alone.

One downside is that wifi costs $4 a day or $12 a week. Other than that, it’s one of the cheap hostels in Melbourne, and offers fantastic value for money!


Prices: Dorms from $25; Privates from $135 | Location: Melbourne Centre

Discovery Melbourne
Image Credit: © Discovery Melbourne

If you’re looking for a cheap backpackers in Melbourne that is in the heart of the city, then Discovery is the place for you!

The hostel is located close to North Melbourne near the famous Queen Victoria Markets making it easy to get around the city. Discovery is a clean and modern hostel with excellent facilities.

A bar and cafe are downstairs and a rooftop terrace as well. One of the quirkier facilities Discovery has is an in-house masseur! I never heard of a hostel with a masseur before, but if you need to work out any aches and pains, then you can!

I’d recommend staying at Discovery if you’re looking for cheap accommodation in the centre of Melbourne. It’s a Melbourne hostel that is one of the best in this category!

Flinders Backpackers

Prices: Dorms from $27; Privates from $75 | Location: Melbourne Centre

Flinders Backpackers
Image Credit: © Flinders Backpackers

Flinders Backpackers is the ideal place to stay if you want to be in Melbourne CBD.

The hostel isn’t far from Flinders Street Station and is right in the heart of the action. It’s a modern and vibrant hostel, with lots of facilities for you to use during your stay.

There is a giant kitchen, with free breakfast every morning. Plus, a large common area, with a free pool table and giant TV.

The rooms aren’t the most spacious, but they are comfortable. They also come with lockers as standard to keep your valuables safe.

If you want a cheap backpackers in Melbourne, this is the place for you!

Habitat HQ

Prices: Dorms from $26; Privates from $99 | Location: Melbourne Centre

Habitat HQ
Image Credit: © Habitat HQ

I’m a big fan of making a difference when you travel. That’s why I can’t recommend staying at Habitat HQ enough.

They have recently become the first carbon-neutral backpackers in Melbourne! Not only will you be staying in comfort, but you’ll be benefiting the environment too! Wins all around!

This hostel in St Kilda is near the beach and has excellent facilities. There’s a big common area and even a courtyard with a BBQ. You can spend your time at their in-house bar!

Habitat HQ is without a doubt one of the best Melbourne hostels. If you want to stay near the beach in St Kilda, this is a great option!

Melbourne Central YHA

Prices: Dorms from $27.50; Privates from $114 | Location: Melbourne Centre

Melbourne Central YHA

As far as I’m concerned Melbourne Central YHA is one of the best hostels in Australia!

The rooms are spacious and comfortable with more than enough space for everybody. There are also lockers under the bed to store your valuables.

Since I stayed there, a common area has been added to the hostel on the ground floor. This was the only thing that was lacking during my stay.

This only enhances the hostel more! There is also a rooftop area, where you can use the Barbecue station and simply relax under the Melbourne sky!

I highly recommend this hostel if you’re undecided about where to stay in Melbourne!

Melbourne Metro YHA

Prices: Dorms from $28; Privates from $90.50 | Location: North Melbourne

Melbourne Metro YHA
Image Credit: © Melbourne Metro YHA

The Melbourne Metro YHA was a favourite of mine. It may be outside of the city centre somewhat near North Melbourne, but it’s a lovely hostel nonetheless!

I found the staff here to be super helpful, and the facilities were top-notch. There was a big kitchen and common area downstairs. While, there was also a rooftop terrace, which had some terrific views of Melbourne.

The rooms were big enough with big lockers to keep your valuables safe. If you want a hostel in Melbourne away from the action, the Melbourne Metro YHA is a good option!

Nomads Melbourne

Prices: Dorms from $23; Privates from $94 | Location: Melbourne Centre

Nomads Melbourne
Image Credit: © Nomads Melbourne

The Nomads chain of hostels is among the best in the world. Nomads Melbourne is no exception to this. Not only are the prices cheap, but the facilities are fantastic as well!

You have a huge kitchen, rooftop terrace and even a cinema room! The hostel also has a travel agent near the reception should you wish to book a tour in and around Melbourne!

As a bonus, Nomads provides free pasta and rice, free tea and coffee and free pancakes every Thursday morning.

There’s no doubt Nomads is up there with the other cheap accommodation in Melbourne! I highly recommend staying, if you want a cheap and cheerful place to stay!

If you’re only spending 3 days in Melbourne, Nomads is a great place to stay!

Space Hotel

Prices: Dorms from $37; Privates from $105 | Location: Melbourne Centre

Space Hotel
Image Credit: © Space Hotel

Space Hotel is a bit different from other hostels in Melbourne. It’s a mix-up of budget backpacker accommodation and a boutique hotel. What this means is you’ll get brilliant facilities at a reasonable price.

Space is located in the centre of Melbourne. The rooftop terrace offers some incredible views of the Melbourne skyline.

The hostel has a wealth of facilities. You can watch a movie in a cinema. If you need to do some exercise, you can use the in-house fitness area. The hostel offers a lot.

There is a range of rooms from mixed dorms to private rooms, all of which are comfortable and spacious. It’s definitely one of the top hostels in Melbourne!

The Nunnery

Prices: Dorms from $35; Privates from $130 | Location: Fitzroy

The Nunnery
Image Credit: © The Nunnery

The Nunnery is a quirky hostel. It’s located outside of the city centre of Melbourne. But, if you don’t want to stay in the heart of the city, it represents a good option.

It’s located in Fitzroy, which is an area I lived in for 4 months. It’s a hip and trendy part of the city, with numerous bars and cafes scattered about. Plus, the centre is only a 10-minute walk away.

The name gives a clue to the hostel’s origins. The building was once the site of a nunnery and has been converted into a hostel. I’m a big fan of staying in these types of buildings.

They give the hostels a lot more character and often feel cosier than modern backpackers.

I would highly recommend The Nunnery if you want to stay in unique accommodation away from the centre of Melbourne.  You won’t many places like it elsewhere!

United Backpackers

Prices: Dorms from $28; Privates from $138 | Location: Melbourne Centre

United Backpackers
Image Credit: © United Backpackers

United Backpackers has regularly been considered one of the best hostels in Melbourne. It has won numerous awards in recent years, and was named the best hostel in Australia in 2015!

There is a range of rooms to suit all budgets from shared dorms to ensuite privates. The hostel has a lot of activities throughout, which represents a great opportunity to meet fellow travellers!

United Backpackers has a big kitchen, with views overlooking Flinders Street Station and a Bar and Underground lounge where you can hang out as well!

It’s one of the best hostels in Melbourne for solo travellers. If you’re travelling Australia alone, I would recommend staying here. You will definitely meet a lot of people at this friendly and lively hostel!

Urban Central

Prices: Dorms from $30; Privates from $80 | Location: South Melbourne

Urban Central
Image Credit: © Urban Central

Urban Central was one of the Melbourne backpackers that I spent a long time in. I was there for around a month and enjoyed my stay. One thing to note is that the hostel is not as central as the name suggests.

It’s actually in South Melbourne close to the Crown Casino. It’s only a 5-minute walk to Southbank, but the name does suggest it’s in the middle of the city when it’s not!

The facilities here were top-class. The kitchen was spacious, while the rooms had big lockers and were comfy. It’s one of the best hostels in Melbourne for solo travellers as it’s easy to meet people here.

The hostel has a downstairs bar area, which I really liked for its social aspect. Plus, they showed all the English football live, even early in the morning.

If you’re a fan of football, then I recommend you stay here to make the most of this!

Concluding Thoughts

As you can see, choosing the best hostels in Melbourne isn’t easy! The sheer number of hostels in the city makes it a tough task. However, there are enough quality backpackers to ensure you’ll be happy during your stay!

That will leave you free to enjoy the numerous awesome things to do in Melbourne!

Do you agree with this least? Were there any Melbourne hostels you stayed at, I’ve not included? Leave me a comment below, I’d love to hear your thoughts!

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