Last Updated: 10/20/23 | October 20th, 2023
Melbourne is the backpacker hub of Australia. Its laid-back vibe, awesome live music scene, and rowdy nightlife make it a favorite for backpackers and budget travelers alike.
Since it’s a popular spot for budget travelers, the city boasts dozens of hostels. In my decade-plus of visiting Melbourne, the hostel scene here has changed drastically. You have so many choices it can be overwhelming.
There are a lot of things to consider when selecting a hostel. The top four when picking the best hostel in Melbourne are:
- Location – Melbourne is a big city and it can take some time to get around. Pick a place that is central to the sites and nightlife you want to see. All the hostels listed here are in central locations.
- Price – In Melbourne, you really get what you pay for, so if you go with a really cheap one, you’re probably going to get a hostel that is small, cramped, and doesn’t offer great service.
- Amenities – Every hostel in the city offers free Wi-Fi, and most have a free breakfast, but if you want more than that, be sure to do your research to find the hostel that best meets your needs!
- Staff – All the hostels listed here have amazing staff! They are super friendly and knowledgeable. Even if you don’t end up staying at one of the places listed below, be sure to look up reviews to ensure you end up somewhere where the staff is helpful and friendly! They can make or break a hostel!
To help you plan your trip, here is my list of the hostels in Melbourne that I like the most. If you don’t want to read the longer list below, the following hostels are the best in each category:
Want the specifics of each hostel? Here’s my comprehensive list of the best hostels in Melbourne:
Price Legend (per night)
- $ = Under 45 AUD
- $$ = 45-55 AUD
- $$$ = Over 55 AUD
1. Barkly Backpackers
Barkly is a cozy backpacker hostel just 5 minutes from the beach. This is more of a quiet (but still social) hostel rather than a party hostel, so it’s a good place to stay if you want to meet people but still get good sleep. I like the homey feel and that the staff are super welcoming and friendly. There are a lot of free perks too, like free coffee/tea all day and free laundry powder for when you need to wash your clothes.
The dorm rooms are large and spacious and have huge windows but the beds are just basic metal bunks. There are no curtains on the beds but the mattresses are decent and there are lockers to store your gear.
Barkly Backpackers at a glance:
- $$
- Social common area so it’s easy to meet people
- Fully equipped kitchen
- Free coffee and tea
Beds from 49 AUD.
2. Flinders Backpackers
Located next to Flinders Street Station, this hostel offers massive 18-bed dorms. The dorms are big but the bunks are cheap metal frames. There are no curtains but there are individual lights and outlets to charge your devices.
The atmosphere more than makes up for the beds though as there’s a huge common area, a TV room where they host movie nights (with free popcorn), and a huge kitchen for cooking your own meals. I really liked that they have a bar and restaurant on-site which has events almost every night (things get really lively on the weekend).
Flinders Backpackers at a glance:
- $$
- Lively bar on-site
- Organizes activities every night (movie nights, free drink nights)
- Fun, social atmosphere
Beds from 45 AUD, private rooms from 120 AUD.
3. Nomads St Kilda
Nomads St Kilda is one of my favorite hostels in Australia. The hostel is definitely a party hostel so don’t stay here if you’re looking for quiet!
I love that they host regular activities, including karaoke and foam parties, and the huge common room here has a pool table, foosball, and board games. Like most party hostels, the beds aren’t great. The bunks are cheap metal frames with thin mattresses and no curtains, but if you’re staying here you’ll likely be up most of the night anyway!
Nomads St Kilda at a glance:
- $$$
- Bar on-site makes it easy to meet people
- Organizes lots of fun activities (karaoke, foam parties)
- 5-minute walk to the beach
Beds from 74 AUD, private rooms from 184 AUD.
4. Tram Stop 14 Backpackers
This no-frills hostel is one of the cheapest in the city. I like that they cater to long-term travelers as there’s usually a minimum three-night stay so it’s easier to connect with people. They have discounts for stays longer than a week too. I also love the huge, well stocked kitchen.
The dorm beds are basic bunks with no curtains but the mattresses are decent and there are plenty of outlets to charge your devices. There’s lots of live music nearby too.
Tram Stop 14 Backpackers at a glance:
- $
- Super affordable
- Lots of live music nearby
- Discounts for long-term stays (great for digital nomads)
Beds from 40 AUD, private rooms from 119 AUD.
5. The Nunnery
Built in the late 1880s, this was an actual nunnery for over six decades. Today, it’s a fun hostel with a cool interior design (they kept the stained glass and huge staircases from the nunnery). The hostel has a very laid-back, homey feel so it’s easy to chat with other travelers and meet people. There’s a small kitchen if you want to cook and they also rent bikes in case you want to explore the neighborhood.
While the bunks are basic metal ones the mattresses are generally pretty decent. There are no privacy curtains, but there are lockers for storing your stuff. I especially like that they host lots of free events, such as pub crawls and movie nights, so there is always something to do. Free breakfast is included too.
The Nunnery at a glance:
- $$
- Organizes daily free activities (pub crawls, movie nights)
- Large private rooms (great for couples/families)
- Courtyard BBQ for hanging out &cooking
Beds from 47 AUD, private rooms from 125 AUD.
6. The Mansion Melbourne
This newly renovated hostel has become extremely popular due to its fantastic location in the artsy Northside area of Melbourne. The highlight for me is that it’s inside the “free tram zone” around the CBD and within close reach of Queen Victoria Market, Federation Square, and Chinatown. They have friendly staff, a well-equipped kitchen, and since it’s not really a party hostel it tends to be a bit less rowdy than others (there’s a no noise rule after 11pm).
The beds are basic metal bunks but the mattresses are really thick and there are lockers for storage. Each bed has a plug and a light too, as well as a privacy curtain so you can get a decent sleep. There’s a bar and cafe on-site too, plus a space for digital nomads who need to work.
The Mansion at a glance:
- $$
- Convenient CBD location
- Bar, cafe, co-working spaces
- Well-equipped kitchen
Beds from 49 AUD.
While there are now over 30 hostels in Melbourne, these hostels are the best the city has to offer. Whether you’re looking for a long-term stay as you sort out a working holiday or just visiting for a few nights, a stay at these hostels will ensure you have a fun, safe, and social experience.
After ten years of traveling the world, I still love to stay in hostels. They add character to your experience and make it easy to meet other travelers. If you want to make the most out of your time in Melbourne, be sure to stay at any of the hostels above. You won’t be disappointed.
Book Your Trip to Melbourne: Logistical Tips and Tricks
Book Your Flight
Use Skyscanner to find a cheap flight. They are my favorite search engine because they search websites and airlines around the globe so you always know no stone is left unturned!
Book Your Accommodation
You can book your hostel with Hostelworld as they have the biggest inventory and best deals. If you want to stay somewhere other than a hostel, use Booking.com as they consistently return the cheapest rates for guesthouses and cheap hotels.
Don’t Forget Travel Insurance
Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. My favorite companies that offer the best service and value are:
- Safety Wing (best for everyone)
- Insure My Trip (for those over 70)
- Medjet (for additional evacuation coverage)
Looking for the Best Companies to Save Money With?
Check out my resource page for the best companies to use when you travel. I list all the ones I use to save money when I’m on the road. They will save you money when you travel too.
Want More Information on Melbourne?
Be sure to visit our robust destination guide to Melbourne for even more planning tips!
