Melbourne follows Sydney in the popularity contest for tourists, and there is definitely a bit of rivalry between the two as to which city is better. Melbourne seems to be the one that is setting the tone for art and trendy culture in Australia, but when it comes to hotels, there probably isn’t much difference.
Hotels in Melbourne are just as plentiful as hotels in Sydney, and you can rest assure knowing there is something for just about any budget. And, if the hotels are still a bit too much, a number of hostels can help you save some money on travel expenses. Prices for hotels in Melbourne in the middle range will run you anywhere from $100 to $200 AUD per night, but you can definitely find a 5-star hotel for much, much more.
Of course, staying further away from the city center will provide lower priced hotels, and doing so can help you experience some of the wonderful Melbourne suburbs. Some trendy Melbourne suburbs of note include South Yarra, Toorak and Richmond to name a few.
Melbourne city has a fairly good transportation system with plenty of options for bus travel, train travel and even a good network of trams to choose from. If you have the chance, be sure to take advantage of the Melbourne city tour on the free tram.