I would second this - I've had some incredible times in such places. I've put up a few other people in hostels tonight and expect a few more might take me up on the offer before end of day tomorrow. I understand not wanting to be a drain on resources, but it is very cheap and I'd feel much better knowing you've got a roof over your head.

I really really hate hostels to be honest. I actually lived in Melbs for a couple of years in the past and have an Aussie ex wife too. I used to live in Middle Park (of all places) and so going and staying in a dorm in St Kilda just isn't my idea of a fun time right now. Can appreciate I'm in a bit of a strange place but I'm in some kind of middle ground between tourist and resident, and the days of entertaining ideas of dorms are well behind me.

Edit: but that said, thanks for the tip. I realise I'm being diva-ish so I'll give it some thought. Would likely have a good time there. Just still sad at being stiched up for someone's kicks at Christmas.