Proving that affordable hotels don’t have to sacrifice style, the Pension Hotel’s turn-of-the-century appeal has been retained with warm yet functional interiors in muted tones. Nailing the ‘home away from home’ feel, this hotel scores big points for being Melbourne city’s first pet-friendly hotel. Free WiFi, access to a rooftop sundeck and a prime Spencer Street location within the Free Tram Zone makes the Pensione Hotel the Holy Grail of budget stays.
Time Out tip: Solo travellers planning on spending most of their stay out and about in Melbourne will love the value offered by the diminutive Matchbox Room. At 9m2 this compact yet well-appointed room with a single bed can sometimes be picked up for as little as $64 a night.