20 Affordable Hotels in Victoria (2025)

Affordable accommodation in Victoria doesn’t mean you need to compromise on quality or location. This region offers a variety of budget-friendly hotels, from sleek city options in the heart of Melbourne’s bustling CBD to the seaside vibes of St Kilda. Choose from hotels boasting stylish decor, great amenities and convenient locations, or more relaxed rural retreats with gorgeous grounds and stunning views. Whether you’re after a city base, a country idyll or a beach escape, a visit to Victoria needn't break the bank.

For a city escape

• Brady Hotel Jones Lane offers a reasonably-priced and stylish stay in the heart of Melbourne's CBD. Rooms here are sleek and contemporary, including some studio apartments with kitchenettes. There's shared access to a good gym, plus guests can catch a performance at the Princess Theatre, just 500 metres from the hotel.
• Racing fans will love Middle Park Hotel as it's just across the road from Melbourne's Grand Prix track. Well-priced rooms are simple and fuss-free, plus it offers a cool restaurant-pub with happy hour, trivia nights and lively Sunday roasts. There's also a tram stop just outside, taking you straight to the CBD and Melbourne's beaches.
• The Larwill Studio is an arty pick inspired by the art of David Larwill, whose bright paintings create a playful atmosphere. Situated in central Melbourne, it offers chic Scandi-style guest rooms right next to Royal Park and a lovely laidback restaurant. Great value for a city break.

For a cool roof terrace

• You get a lot for your money at The StandardX, Melbourne. Stay in slick and stylish rooms, savour Thai-inspired flavours at the restaurant, and enjoy Mexican cocktails on the roof terrace with fabulous views. It's situated in the creative Fitzroy district, which is crammed with fantastic evening spots, including lively bars and restaurants within walking distance.
• Art Series — The Chen is an another affordable choice in Melbourne with a great roof terrace and pool. This high-rise hotel showcases the bold, animated works of Chinese-born Australian artist Zhong Chen. It boasts a superb dim sum restaurant and is well-placed for exploring the eastern suburbs.
• Set on Chapel Street in South Yarra, The Olsen is in a top spot for keen shoppers, as Melbourne's best stores are within reach. Its restaurant highlights superb regional produce and guests can enjoy a glass-bottom swimming pool plus a hot tub on the roof terrace with fantastic city views. With a spa and gym, it's a wallet-friendly option.

For character and charm

• Dating back to the 1850s, Craig's Royal Hotel in Ballarat is a classic heritage choice. Great value for a central stay, it offers character in spades — think patterned wallpapers, carved wooden beds (some four-posters) and rich textiles. A wonderful step back in time.
• A Loft In The Mill offers four characterful suites within a replica 19th-century mill in Olinda. Expect carved four-posters, embroidered textiles, crackling fireplaces and soaking tubs — most have private terraces, plus kitchenettes and sitting rooms. Special rates are available if you book all the suites for a lovely group getaway. 
• Set in the heart of Bairnsdale, The Riversleigh is a charming pick offering a wonderful mix of modern rooms and suites with period features, high ceilings and characterful fireplaces. This well-priced property has a lively bar and is in a lovely spot overlooking the Mitchell River.

For a lively stay

• The Prince, in the seaside suburb of St Kilda, offers great amenities such as a sauna and steam room at a great price. This is a lively little hotel with a fun vibe for groups and a popular live music venue for big nights out. Its hip wine bar and Mediterranean restaurant and pub are ideal for keen foodies and wine lovers.
• Situated in the heart of Melbourne's bustling CBD close to the city's best bars, cafes and restaurants, Laneways by Ovolo is a cool choice for the budget-conscious traveller. Bold, Memphis-inspired interiors give a contemporary feel and complimentary breakfast is included.

For a family-friendly base

• Tyrian Serviced Apartments Fitzroy offer families great value with two- and three-bedroom apartments featuring well-equipped kitchens, comfortable sitting rooms and private balconies. Brilliantly positioned for exploring the lively Fitzroy neighbourhood.
• Babysitting services, free pram hire and family suites make The Cullen a good budget-friendly option for families. Located opposite Melbourne's bustling Prahran Market and Chapel Street, this quirky looking hotel has 119 rooms — the largest suites come with a fully-equipped kitchenette. It's within walking distance of the city's main attractions and you can hop aboard the tram to St Kilda for an afternoon at the beach.

For a hip getaway

• For a good value and trendy take on a small-town motel, The Daylesford Art Motel fits the bill. It has 10 retro-chic rooms with big cosy beds, eclectic artwork, smart bathrooms and compact terraces. Set in a lively and artsy Victoria hub, it's perfectly placed for exploring.

For a rural retreat

• Set in 12 rolling acres on the banks of the river, Oscar’s on the Yarra makes for a relaxed option at a good price. It offers comfy garden-view rooms, cosy lounges with fireplaces and a billiards table. The perfect spot for hiking, cycling and fishing excursions.
• Yarra Valley Lodge is another reasonably-priced rural delight. Overlooking the Heritage Golf & Country Club, it has 102 stylish rooms, a spoiling spa and a restaurant-bar. Follow scenic walking and hiking trails along the Yarra River, through the vineyards and fields or up Mount Lofty.  

For a quaint B&B

• Dating back to 1860, Athelstane House is Queenscliff's oldest operating guesthouse. There are nine well-priced rooms, a cosy lounge and charming terrace, plus home-cooked breakfasts are served in the breakfast room each morning. A top spot for exploring the area's highlights on foot or by bicycle.

For a chic boutique

• Set in the heart of Daylesford, Hotel Frangos is big on style and amenities. This lovely, characterful little hotel offers plenty of personality at great prices. Rooms are stylish and chic, there's a choice of two lively restaurants and the Endota Day Spa is the perfect spot to unwind.  A charming adults-only stay.
• Oscar's Hotel and Cafe Bar in Ballarat is a simple, good value little property with just 13 guest rooms and a friendly feel. The restaurant serves modern Australian fare and there's a cute bar and terrace. Dating back to the gold rush era, it's in a great central spot to explore the town's history.
• Naughtons Hotel is a warm and welcoming restaurant-with-rooms set in a 150-year-old building just opposite Melbourne University. This is a foodie favourite with hearty pub fare, seasonal ingredients and a strong sustainable cooking ethos. A relaxed option that won't break the bank.

Still not sure?

• Browse through our full list of accommodation options in Victoria,
• Refine your search to include our recommendations for 8 Rural Hideaways in Victoria or 8 Foodie Escapes in Victoria,
• Alternatively, contact one of our friendly Gurus for personalised advice.