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Best Hotels in Sydney (2026)

Choosing where to stay in Sydney depends on your priorities. The Rocks and Circular Quay are the best areas for first-time visitors who want to be close to the harbour, and they include some of the city's most luxurious hotels, such as Park Hyatt Sydney on the water at Campbells Cove and Shangri-La Sydney, whose upper floors look across the harbour. Capella Sydney, in a restored heritage building between the quay and the business district, offers a quieter, design-focused alternative.

The city centre is convenient for shopping, theatres and transport, with QT Sydney beside the State Theatre and Kimpton Margot Sydney in an Art Deco building on Pitt Street. Ovolo Woolloomooloo occupies a historic wharf a short walk from the Art Gallery, and The Old Clare Hotel in Chippendale puts the restaurants of Kensington Street on your doorstep. On a budget, YHA Sydney Harbour in The Rocks offers dormitories and private rooms with a rooftop overlooking the Opera House. Book well ahead for summer, Vivid Sydney and New Year's Eve, when rooms with harbour views sell out quickly.

8 places · Updated October 24, 2026

Our top 3 hotels in Sydney

  1. Park Hyatt Sydney Luxury harbourfront hotel, The RocksA low-rise luxury hotel on the water's edge at Campbells Cove in The Rocks, with 155 rooms and suites with balconies facing the Opera House.
  2. Capella Sydney Luxury heritage hotel, Sydney CBDA luxury hotel in the restored former Department of Education building in the Sandstone Precinct, opened in 2023 with 192 rooms and an indoor pool.
  3. Shangri-La Sydney Luxury high-rise hotel, The RocksA 36-level luxury hotel above The Rocks with 565 rooms and suites, harbour views, a spa and the Altitude restaurant and Blu Bar on level 36.

Hotel

2. Capella Sydney

Luxury heritage hotel$$$$Sydney CBD

A luxury hotel in the restored former Department of Education building in the Sandstone Precinct, opened in 2023 with 192 rooms and an indoor pool.

View details — Capella Sydney

Hotel

4. QT Sydney

Design hotel$$$Sydney CBD

A theatrical design hotel in the heritage Gowings and State Theatre buildings on Market Street, with 200 rooms, a spa and two restaurants.

View details — QT Sydney