Where to stay

Choosing a hotel in Melbourne CBD (Central Business District) puts you in the middle of the museums and sightseeing action. This is a great place to stay to tour Federation Square, the Princess Theatre, the Melbourne Aquarium and the gourmet food halls of Queen Victoria Market. When not wandering through museums, there are ample rooftop bars and cafes to choose from, as well as the hip Curtin House with its six stories of shopping and dining along Swanston Street. Collingwood and Carlton are nearby: Hotels in these neighborhoods are close to the Melbourne Museum and the Pauline Gandel Children's Gallery. For a riverside location along the Yarra and a spin on the Melbourne Star Observation Wheel, look for accommodations in up-and-coming Docklands. Stay in St. Kilda to be close to famous, 100-year-old Luna Park; ride the epic Great Scenic Railway wooden roller coaster for thrills and the best views of Port Phillip Bay.

For an outdoorsy, seaside vibe, choose accommodations in historic St. Kilda, where you can ride Luna Park's thrilling roller coaster, then stroll past grand hotels and restaurants along the waterfront. Big-name acts perform at the Palais Theatre, incredible bakeries line Acland Street and local arts and crafts feature at the Sunday Esplanade Market. The Central Business District is home to the Royal Botanic Gardens, a welcome respite after visiting the CBD's other attractions, including Flinders Street Station and the Eureka Tower. For a quieter, though just as idyllic natural setting, consider a hotel in Carlton for its beautiful namesake gardens (beside the ornate Exhibition Building). Rooms in the village of Mount Dandenong, to the east, offer picturesque views of the Dandenong Ranges and greater Melbourne, extending to the Bays.

Foodie travelers will want to book accommodations in Footscray, a Melbourne suburb and up-and-coming dining destination. Streets are lined with global cuisines brought to the area by migrant communities. Hotels here are close to Footscray Market and the Little Saigon Market, notable brunch spots and locally owned restaurants serving everything form Vietnamese banh mi to Italian cannoli to Ethiopian goat curry. Stay in Brunswick for a wide range of cafes, vegan brunch spots, Mediterranean grocers and Middle Eastern cuisine. Or, stay in Carlton for a taste of Italy; the best espresso and pastry shops are along Lygon Street.

There is fashion for all tastes throughout Melbourne's best shopping neighborhoods. Embrace the city's cool and kooky side with a hotel room in Fitzroy, just north of the Melbourne CBD. Shop for all things vintage, from clothing to books. On weekends, an eclectic artists' market takes over Rose Street. Richmond hotels are convenient to the many global food stalls, pubs, farmers' markets and shopping options of this culturally diverse neighborhood. Those seeking high fashion and even higher price tags may choose to stay in South Yarra, where designer boutiques neighbor posh nightclubs. For more haute couture, stay near Collins Street, home to Hermes, Dior, Louis Vuitton and other international labels.