Although this hotel is more Brooklyn than Rome, it takes its “pensione” philosophy seriously -- it's an intimate place that wants guests can feel like they’re at home, and that lacks many typical hotel services. (But don’t let the name mislead you, this hotel bears no resemblance to anything European). The property's home-like details include laundry machines, a bookshelf and reading nook, a grill for rent, free Wi-Fi, and a cafe space that’s available around the clock. The idea is that you can spread out, hang out with friends or get some work done, and have all the basics of home at your fingertips. It’s a good place to lay your head given the thoughtful touches and relatively central location, though think twice if you’re the type to spend a lot of time in your room (they are uninspired and fairly small).

From right when you walk in, the hotel shows spunk and quirky personality -- newspapers are tucked into a thick rope on the wall (think: brief flash of maritime decor), astroturf animals sit on the front desk, and -- at least when we visited -- a sign indicates that guests can trade a hashtagged Instagram post for a late checkout. It's the type of place where Aussie couples come for the latest “footy” match; young locals pop into the cafe for a flat white; and young friend groups (the sort who look like they’ve recently “graduated” from hostels) tap on their smartphones in the lobby. And so, Pensione fills a niche for those seeking a hip vibe, decent rooms, and a reasonably central location for affordable rates. Sure, there are hotels with better rooms, a better location, or both, but they're not as cheap. For those whom more space and self-catering are a priority, consider the apartment-style units nearby Alto Hotel on Bourke (though its rates are a bit more). 

Pensione Hotel sits on the very southwestern edge of the CBD, about an 18-minute walk along a very busy street into the heart of the city. While some may like being removed from the chaotic center (though the hotel’s street itself is quite busy with traffic), the hotel’s immediate area isn’t very exciting and most tourists will find themselves venturing out to explore the cafes and laneways that make Melbourne unique; the hotel’s location, while it could be much worse, isn’t its draw. 

A few exceptions to that are Sea Life Melbourne Aquarium (a five-minute walk), Etihad Stadium (a 12-minute walk), and the casino and high-end shops at the Crown Entertainment Complex (a six-minute walk). The hotel is also close to the Yarra River, where travelers can stroll along the developing (if perhaps touristy) promenade. 

The hotel is surrounded by tram lines (the most common way to get around Melbourne). The tram line on Flinders Street, just steps from the hotel, goes into the center of the CBD in minutes (and is part of the free tram that goes through downtown). Another tram line runs right past the hotel, and a third tram line is just a block north at Collins Street.

• Eight-minute walk to the Melbourne Convention and Exhibition Centre 
• 10-minute walk to DFO South Wharf (outlet shopping mall)
• 18-minute walk to Federation Square and Flinders Street Station
• 15 minutes by tram to the Arts District (theaters, museums)
• 15 to 20 minutes by tram to the State Library of Victoria 
• 25 minutes by tram to Royal Botanic Gardens 

Rooms are not the standout feature here, and are both basic and a bit worn. The red, gray and black scheme is “complemented” by drab gray carpets, 32-inch flat-screen TVs (small compared to competitors), and no special touches to speak of. We often saw scuff marks on walls and chipped paint along wall edges; guest rooms could use at least some TLC if not an entire refurbishment. Some rooms only look into internal atriums (which still get a good amount of sunlight), and there are even a handful of rooms that are completely internal, with no windows at all (aside from inadequate skylights). Travelers who are looking to spend time in their rooms should look elsewhere (consider the more spacious rooms at Ibis Melbourne Little Bourke Street, or the affordable apartments at Alto Hotel on Bourke).

Bathrooms, which are also basic, vary in size, but can be tiny in some cases, which unfortunately also means having a narrow shower stall (to the point where the hotel will keep an eye out for larger guests and discreetly assign rooms accordingly). All bathrooms have tiny sinks, and there are no bathtubs.  

The hotel’s seven room types start at just nine square meters, or 97 square feet (Matchbox Rooms, which fit one person), which is unique and makes the hotel a good budget option -- as long as guests are aware of what they’re booking. While being in old building lends charm (narrow brick atriums; a maze-like layout), it also means that rooms come in all sizes and the configurations vary greatly -- even within a given room type, you never quite know which windows, ceiling height, or layout you’ll wind up with.  

All rooms have a 32-inch flatscreen TVs, empty mini-fridges, iron and ironing boards, toiletries by Soak, and electric water kettles with tea and instant coffee. 

There are two exceptions to the drab rooms. First, of the 114 rooms here,19 are completely refurbished, and there's a world of difference. Expect light-colored wood floors, exposed brick walls, and contemporary gray tiling in the showers. (Unfortunately, the hotel doesn’t currently have plans to refurbish remaining rooms to match.) Second, seven ground-floor rooms (aptly named Courtyard Rooms) have private courtyards, and they’re beautiful respites of greenery in the middle of urban Melbourne. 

This isn’t the kind of hotel you come to if you’re looking for first-rate leisure facilities (or, any type of leisure facilities really). But Pensione Hotel gives its guests a few non-standard things to help make them feel comfortable: There are coin-operated laundry machines, two bikes for rent, and two armchairs that accompany a full bookshelf (guests are welcome to borrow). There’s a rooftop space (not ubiquitous by any means in Melbourne) where guests can hang out, use the free Wi-Fi, or rent the communal grill to have a barbecue.While there’s no full restaurant on site, the cafe serves breakfast, coffee, snacks, and a light dinner, and the large space stays open around the clock (even after its bar closes at around 11 p.m.); there’s even a light room service menu which is fulfilled by the cafe.