Hostel rates with luxe traits: this Melbourne hotel won't break your bank

The building, constructed in the 1970s as a hostel and office building for the YWCA, was most recently a hotel called Jasper. Now, thanks to a complete makeover by architecture firm DKO, it is the third in Ascott Limited's Lyf portfolio in Australia, built to service digital nomads and discerning travellers on a budget. It opened in December 2025.

Want to be in the action? Sorted. You can walk to almost everything in Melbourne's CBD from here. Turn left out of the front door, take about 20 steps and you're at the famous Queen Victoria Market. Turn right and it's a short stroll to an array of restaurants, serving dishes as varied as Indonesian mie goreng, Japanese ramen and Turkish gozleme. There's more just 500 metres down the road, where you'll discover Melbourne Central, with its cinema, shops, eateries and train station. A tram taking you to Flinders Street Station or up to Brunswick's eclectic Sydney Road is on the doorstep.

The architects have taken the building's brutalist features and made the most of them, using polished concrete and chunky designer furniture in the common areas on the ground floor and level one, where you'll find the check-in desk. One of Lyf's differences is its communal spaces, including a large, well-equipped kitchen, areas for work and socialising, a laundry and gym. The focus here is on connection, with members of the onsite team known as Lyf guards.

Unlike the brand's purpose-built offerings in Collingwood and Bondi Junction, Lyf on Elizabeth Melbourne is a conversion of a former hotel, meaning the 90 rooms here are more spacious. The makeover features plenty of light oak finishes and pops of colour thanks to pieces of contemporary art. The beds are comfy (some rooms have twins), the bathroom amenities come in large, refillable pump packs, and there's a desk to work at. My One of a Kind Plus (Balcony) room has a spacious outdoor area overlooking Elizabeth Street. Surprisingly, with the doors closed, the noise from the street - busy at all times of the day and night - is almost completely blocked. It is all perfectly clean and comfortable, with everything you need and nothing you don't. There are also four accessible rooms and four suites, each with a separate living area featuring sofa bed, making them suitable for three people.

During my stay, the stylish communal lounge on the ground floor often had families and groups of friends chatting on the oversized couches. There are also shared tables there and next to the communal kitchen if you need to do some work but want to get out of your room.

Finding a central Melbourne location with stylish interiors, excellent amenities and some of the lowest rates in town is reason to get excited - and to plan more trips to the southern capital.

The writer stayed at her own expense