Marvellous Melbourne redux

Australia's second largest city is obsessed with arts, sports and the thriving cafe, bar and restaurant scene. Looking at the vibrant city today, with its cosmopolitan, multi-cultural mix, it's hard to imagine that it wasn't always like this. But in the last 15 years, the city has undergone a renaissance of sorts. The once gloomy after-dark business district now has a West Village, New York City-like feel. Along with the glass towers of commercial offices, this district now houses innumerable hip boutiques, restaurants and bars. Melbourne's riverside and bayside locations have also been rediscovered, with exciting developments in new precincts such as Southgate, New Quay and Docklands. Then there are the all time favourites of St Kilda and Fitzroy.

It all started way back in 1835 when John Batman bought 240,000 hectares of land from the indigenous owners. Of course, the sellers got a raw deal, receiving only some tools, flour and clothing for their homeland. By 1869, Melbourne was flourishing thanks to the wealth from the goldfields near neighbouring Ballarat. In fact, it was known as Marvellous Melbourne. Its era of gold ended in the 1880s but by then in its streets, parks and buildings, Melbourne had already achieved its Victorian-era character.

The Yarra river flows through the city and sort of divides the city into half, not only geographically but socio-economically as well. The southern and eastern suburbs have always been the more affluent areas whereas the northern and western suburbs have always been working class areas.

The World Cup matches (and the final) will be played in the Melbourne Cricket Ground, which is 5km from St Kilda - which is simply the place to stay in Melbourne.

What to pack: Melbourne is notorious for four seasons in one day and rain is always a possibility as are spells of cold weather and bright sunshine. Pack a light sweater, a raincoat or an umbrella and good walking shoes. Don't forget to pack your swimmers and also SPF 30+ sunscreen.

A taxi from Melbourne's international airport to the city centre will cost around $50. Besides that there is the Skybus, a 24/7 shuttle service that runs between the airport and the Spencer Street coach terminal. The Airport Bus goes from the airport to Rosebud along the bay. Both these buses can (and should) be booked online.

Melbourne is a great city for cycling too. Bike paths run up the Yarra for 20km and there are plenty of trails too. The Melbourne Visitor Centre at Federation Square provides information and maps on city paths. Besides that bicycles can be taken on suburban trains (for free) during off-peak hours. St Kilda Cycles has cycles for hire including a helmet and a lock. Melbourne Bike Share is a new form of public transport, designed for short trips across the city. Simply purchase a subscription that suits you, take a bike when you need it and then return it to one of the 50 bike stations throughout the city. Information on Melbourne's public transport, which includes buses, trains and trams can be found on the Public Transport Victoria site.

High-end: The Cullen Art Series Hotel is a funky boutique hotel to stay in. It has two fantastic restaurants, location in a vibrant neighbourhood and features a gymnasium and fine views of the Melbourne CBD. Adelphi Hotel is an intimate and mega-slick hotel with a great rooftop bar with fine city views. There have a glass-bottomed lap pool which extends over the street. The rooms are extremely well-appointed. The Prince Hotel is quite the place to stay for unadorned sophistication, quality and polish, on the very happening Acland Street.

Mid-range: The Quest St Kilda Bayside apartments are only a stone's throw from the buzzing Fitzroy Street yet located in a quiet, leafy street. These are excellent value apartments. Barkly Apartments are in various locations around St Kilda. They are good value for money for groups, especially if you're going cook some meals on your own. Richmond Hill Hotel is ideal for those who want to stay close to the Melbourne Cricket Ground, where the final will be played. It is just a 20-minute walk away and is a grand Victorian-era terrace with a garden at the front and an assortment of rooms.

Budget: The Discovery Melbourne hostel proudly proclaims that it has cheap rooms, clean beds and dirty fun. Options are dorms with four to 16 beds and double twin and en suite private rooms. And free breakfast. The St Kilda Coffee Palace is a five-minute walk to St Kilda beach and a ten-minute tram ride into the city. It is quite the buzzing and lively backpacker place.

High-end: The dramatically darkened dining room at Attica proves the perfect backdrop to Chef Ben Shewry's artistic, gorgeously balanced degustation menus. Rockpool Bar and Grill has an expansive menu, ranging from delicate dishes of raw seafood to more robust flavours of house-aged steak. Chefs Neil Perry and Will Cowan Lunn strive for excellence rather than innovation. Pei Modern is a mature, sophisticated canteen open from breakfast through to a nightcap. Vue De Monde, is a sophisticated space on the 55th floor of Melbourne's iconic Rialto building. Chef Shannon Bennett's smart, skilful food completes the dining experience.

Mid-range: The Colonial Tramcar Restaurant offers a unique Melbourne experience: a meal on wheels. The Red Emperor has fresh Yum Cha daily. The views are fantastic too. Mario's offers excellent breakfasts and signature coffees. Should you come later in the day there are good pastas too.

Budget: Spud Bar believes in healthy food that is great value, quick and casual. With many locations around the city this a great place to eat in or to kit out a hamper to take to the beach. Veg Out Time (366 Chapel Street South Yarra. Ph: 03 9827 7570) is your destination if you're vegetarian and feeling like a lost puppy in a city where meat eaters are favoured. Try the samosas and the potato masala

Esplanade Hotel is the ultimate party place and you'll often see people lined up outside. Bands play nightly here. e:FiftyFive is comfortable, cosy and very lounge. This is a good place to unwind with a chilled beer. It's a travellers' hangout and busy most of the time. Scubar (389 Lonsdale Street) is one for the retro lovers. And is a good place for some '80s style funk. Bar Open is usually the last stop on the pub crawl. Multi-level and attracts all kinds of clubbers. Bands play upstairs.

Eating the all-day brekkie on the weekends at one of the many cafes at St Kilda or Fitzroy. This means huge helpings of eggs, pancakes or creative sandwiches and salads. On a sunny day, St Kilda is the place to hang out with its pavement restaurants.

Doing a day trip, if not an overnighter, on B100 or the Great Ocean Road. This has been often touted as one of the world's best driving roads and the views are stunning. The star of road is the rock formation called the 12 Apostles. A helicopter ride to see these stacks of rocks from the air is definitely recommended.

Visiting Phillips Island and seeing the dusk penguin parade. This is something the kids will absolutely love. The penguins come back from the sea like little office commuters waddling back home during rush hour.

Going "goldrushing" at Ballarat to see what Victorian Melbourne might have looked like.

Trying your luck at slot machines or one of the many gaming tables at the Crown Casino. This is the place to be on a weekend

Touring the Yarra Valley vineyards or going for a sunrise balloon ride and champagne breakfast. This is a simply sublime experience. After a balloon ride over manicured vineyards and watching the sunrise from the air, the pilot sets the balloon down in a beautiful location for a champagne breakfast is served.