We’ve been running tours in Melbourne since 2018 and in that time we’ve tried out pretty much every hostel in the city. Yep, really. So we feel we can claim our favourite hostels in Melbourne, for vibes, for views and for meeting other travellers.
The best hostel for arriving in Melbourne: Little Drifters North Melbourne

Whether you’re arriving after a long flight or overnight bus, your first impressions of a city ride high on your hostel. And Little Drifters is ideal.
It’s centrally located in the CBD (Central Business District) which means you’re in the free tram zone (and what backpacker doesn’t love free public transport?!). But it’s tucked away just enough to guarantee a good night’s sleep away from the hustle of the city centre. Essential with jet lag.
You have all the important stuff: big lockers, personal lights and plug sockets. Plus laundry just down the corridor. And it was only renovated in 2024 so everything still feels nice and new.
But it’s the social space we love here. Large lounge ✅ big kitchen ✅ rooftop hang ✅
After you’ve claimed your bunk, make sure you head up to the roof top – the view is fantastic over the city. 🏙️
Oh and it’s also where you’ll stay on our Welcome to Melbourne or Melbourne Mini Pack. So you’ll have friendly faces guaranteed.
The best hostel for a party: Nomads St Kilda
The beach suburb of St Kilda is a rite of passage as a backpacker in Melbourne. Its main draw, is of course, the beach. Along with bars, hippie shops, restaurants and cafes.
This is where you’ll also find Luna Park, Melbourne’s closest thing to a theme park 🎡 open every weekend.
There’s always something happening in St Kilda and Nomads is no exception. This is a party hostel so you can expect a great social scene, incredible events and lots of new mates. It’s also home to the legendary Big Willy’s Bingo 👀 – which has some pretty great prizes on offer, so make a beeline for the Red Eye Bar on a Monday.
But that’s not all, there are events all week from trivia nights to silent discos, so it couldn’t be easier to make new mates.
The facilities include everything you need, a decent kitchen, free pool tables in the bar and an on-site cafe 🤤 for those times you don’t want to cook.
You’re also only two mins from the beach – this is what living in Australia is all about! And if you need to get into the city, the trams are super frequent.
The best hostel for facilities: Space Hotel
Back in the city, Space Hotel, as the name suggests, isn’t your average hostel. It’s the perfect balance between hostel and hotel and the facilities match.
We have to start with the rooftop 🏙️ here because it is massive and that’s not all, it also has its own hot tub – this is luxury backpacking without the hotel price tag. But the list goes on: you’ll find a 📽️ cinema room. There’s even an on-site gym!
Plus, everything you’d expect from a hostel, a great sized kitchen, laundry, chill out spaces and a study/work space on the ground floor ✅
And the dorm rooms come with the biggest lockers we’ve ever seen! You can fit your whole backpack in here AND have room to spare.
The best boujee hostel: Roamer
Is this the fanciest hostel in Melbourne? This is possibly as central as you can get, you’re literally overlooking Flinders Street Station from your dorm room. So if you want a central yet luxury hostel, Roamer ✨has it all.
Roamer is boujee, you’ll notice that in the decor straight away. But it’s the bunks where this really stands out. And we consider ourselves bunk bed connoisseurs 😂. These sturdy wooden bunks have the luxury of a curtain for your own privacy, a locker in your bunk to hold all your essentials. And not to mention a whole drawer underneath to pop your bag in. You get not one, but two plug sockets and a bedside light too. Luxury.
Elsewhere you have a dedicated work and study space – so you can live out your digital nomads dream – or start working on your resume. A good sized kitchen, a chill space and weekly social events. The most unique part? You’ll find live music and a record shop in the basement. True Melbourne vibes.
The best located hostel: The Village Central
You’re right in the centre of everything at The Village Central. You’re only a few minutes from the famous Queen Victoria Market, a stroll from the hub of the CBD and Melbourne Central shopping centre and trams all across the city on your doorstep. So it’s only fair we crown the Village Central as the best located hostel in Melbourne.
That’s not all, you’re also only a stroll from Flagstaff Gardens if you want a little tranquil spot for a picnic or sunbathe.
Then inside the hostel, you’ll find everything you need. A sunny courtyard, TV lounge, kitchen and laundry. And also newly renovated dorm rooms with lockers, curtains and plenty of space for all your luggage.
Decided where you want to stay?
We regularly have great deals with our favourite hostels, so whether you’re after a few nights or a long stay – get in touch to book. Simply pop us an email at [email protected] with your dates and we’ll take it from there.