Where to Stay in Sydney → 6 TOP Areas (+ Hotels w. Prices)

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Aerial view of the Sydney Opera House with the city skyline and high-rise buildings in the background on a clear day.

The iconic Opera House, gorgeous harbor views, and a lively atmosphere are just some of the things that make Sydney an attractive destination. If you think so, too, you’re probably planning your visit and thinking about where to stay in Sydney.

A few years back, I briefly visited Sydney and had an amazing time! So, I can tell you about the best areas to stay in Sydney, what to see and do, and the top Sydney hotels for each budget.

First, I’ll tell you that the best area to stay in Sydney for first-time visitors is Sydney CBD – the Central Business District. This is the heart of the city, and here you’ll find some of the city’s top attractions, amazing restaurants, and the best hotels in Sydney.

You will also find my selection of top hotels for each recommended area sorted by price – luxury, mid-range, and budget. Once you pick a hotel, it’s very important you book quickly – Sydney is a very popular destination and good hotels sell out faster than you might think!

Are you ready? Let’s discover the Emerald City!

Quick Picks for Your Stay

Need to book quickly? Here are the best hotels in the Sydney CBD:

Here’s a map of the 6 Sydney neighborhoods featured in this post:

1. Sydney CBD – where to stay in Sydney for the first time

Sydney CBD (Central Business District) where to stay in Sydney for business and budget

The Sydney Central Business District (CBD) is much more than the business center of the city! Overlooking the Sydney Harbour, this part of the city is dotted with numerous bars, stores, restaurants, and hotels. So, it’s no wonder that it attracts large tourist crowds and the atmosphere is always lively!

There’s no doubt that Sydney CBD is one of the top places to stay in Australia if you’re traveling on business; after all, it’s the business capital of the country. But it’s also where some of the city’s most recognizable attractions are found, which is why it’s the best place to stay in Sydney if you’re visiting for the first time.

The CBD is a large district divided into smaller neighborhoods. The Rocks is one of the CBD’s iconic areas, hosting some of the city’s oldest pubs and most upscale restaurants. The Rocks Market (map) is a must if you’re visiting for a weekend, and the Museum of Contemporary Art Australia is also well worth your time.

Within The Rocks area, you’ll also find the smaller neighborhood of Circular Quay that offers the best views of the waterfront and easy access to the Sydney Harbour Bridge (map).

But what you’re probably most eager to see is the Sydney Opera House (map) – and it’s right here in the CBD. You can just admire it from outside, snap a photo, and move on, or you can go on a guided tour and explore the interior as well.

A pathway along the waterfront in Sydney with people walking and the Sydney Opera House and Harbour Bridge in the background on a sunny day.

Yet another unmissable attraction in this part of the city is the Royal Botanic Garden Sydney (map), a sprawling park with amazing harbor views. Hyde Park (map) is another green space where you can escape the hustle and bustle of the city.

From Hyde Park, you can go on to visit the Sydney Tower Eye and its observation deck and the Queen Victoria Building (map), where you’ll find some first-class shopping.

If you want to do some shopping, the best place for it is the World Square (map), an indoor/outdoor shopping center. In the evening, venture into Chinatown Sydney (map), get some street food and buy some souvenirs.

There’s plenty more to explore in the Sydney CBD, but luckily, this is a very walkable part of the city, and you easily get around on foot. And if you don’t feel like walking, it’s also well connected by public transport.

NOTE: Sydney has found its way to our list of the most overrated cities in the world, with the Opera House deemed an overrated attraction. However, the city offers plenty to explore, and it’s definitely worth a visit.

Collage of 3 pics of hotel in Sydney CBD: a living room with large windows, a bedroom with a double bed, and the exterior of a multi-story building.

Luxury (US$250 and up)

Sheraton Grand – situated in the heart of CBD, this hotel is within walking distance of many Sydney attractions and features a heated indoor pool, a rooftop Health Club, and an amazing restaurant overlooking Hyde Park.
Capella Sydney – during your stay at this 5-star hotel, you can make the most of the spa and wellness center, where you’ll find a pool, a hot tub, and a sauna. Complimentary buffet and à la carte breakfast are served daily, too.

Mid-range (from US$150 to US$250)

The Capitol Hotel – in a convenient location, this hotel has family rooms, each with private bathrooms stocked with complimentary toiletries, free Wi-Fi, and a 24-hour front desk.
Megaboom City Hotel – this hotel in the Sydney CBD offers modern, air-conditioned rooms that have a high-speed Internet connection, a work desk, and a private bathroom. An airport shuttle service is available at an additional charge.

Budget (up to US$150)

The Pod Sydney – each of the pod rooms is air-conditioned and has a king bed and a reading light. Guests also have access to a communal kitchen, a dining area, and a shared lounge.
Tequila Sunrise Hostel – this hostel offers deluxe pods in shared dormitories and provides access to shared bathroom facilities. Breakfast and dinner are provided by the hostel, and better yet, included in the price.

2. Darling Harbour – where to stay in Sydney with family

Darling Harbour where to stay in Sidney with the family

If you feel like the Central Business District is a bit too much for you (it’s one of the best areas to stay in Sydney, after all), then I recommend Darling Harbour. Situated less than a 10-min walk West of the CBD, it has a more laid-back atmosphere, with plenty of interesting sights as well.

Darling Harbour is my recommendation for families traveling to Sydney that want to be extremely close to the city center, but enjoy a quieter area. This is also the best area to stay in Sydney if you’re visiting without a car – all the top attractions are a short walking distance away.

There are many interesting things to do here for children and adults alike. I recommend starting with the SEA LIFE Sydney Aquarium – the ultimate place to get acquainted with marine life.

PRO TIP: If you’re planning a visit to the Sydney Aquarium, book the tickets online! This will guarantee you entry, but you can also get amazing deals – there’s always some sort of discount!

The WILD LIFE Sydney Zoo is another great attraction for the kids. Here, animals live in their natural habitat, and you might even get to feed them! From here, you can go on to see the wax figures at Madame Tussauds Sydney and end the day with some dinner at one of the restaurants along King Street Wharf Darling Harbour (map).

Finally, you cannot miss the fireworks show over Darling Harbour! Every Saturday (with very few exceptions), the sky above Darling Harbor is lit up by fireworks. So, find a good spot anywhere along the waterfront and enjoy the show.

And if you’re still looking for some kid-friendly activities, drive across the Sydney Harbour Bridge to Milsons Point (or take a ferry from Circular Quay) and visit Luna Park Sydney. The park has plenty of fun rides, but you cannot miss out on the Ferris Wheel – the views from the top are absolutely stunning!

TIP: You can also take a ferry from Circular Quay to Taronga Zoo Sydney – another super fun place for the whole family – and Cockatoo Island (map), yet another cool spot.

Convinced? Here are the top-rated hotels in Darling Harbour to choose from:

Collage of 3 pics of hotel in Darling Harbour Sydney: a hotel room with a double bed, a lounge area with people sitting on sofas, an outdoor pool with city views, and a poolside area with sun loungers and towels.

Luxury (US$270 and up)

Sofitel Sydney – enjoy stunning views of the Sydney skyline, swim in the rooftop infinity pool, and indulge in a treatment at the top-notch fitness center. You can have a fine dining experience at the restaurant or grab a drink at one of the 3 bars.
W Sydney – a luxurious hotel with a year-round outdoor pool, a fitness center, an indoor pool, and a restaurant. Guests can order room service and enjoy a variety of breakfast options each morning.

Mid-range (from US$150 to US$770)

Novotel Sydney – this hotel boasts modern rooms that offer views of Darling Harbour and feature a minibar and a TV with streaming services. There’s an on-site restaurant, too and an indoor pool.
Aiden by Best Western – the hotel has a 24-hour front desk, a restaurant, and a tour desk. All rooms are non-smoking, air-conditioned, and have a high-speed Internet connection.

Budget (up to US$150)

Nomads Sydney – offering both private rooms and shared dorms, this hostel organizes various free activities and has a great on-site bar offering nightly entertainment, food, and drinks.
Sydney Pod Hotel – even though this hotel is slightly lower-rated, it’s a great choice if you’re traveling on a tight budget. Providing accommodation in female-only and mixed pod rooms, this hotel also offers free breakfast and dinner.

3. Bondi Beach – where to stay in Sydney for the beach

Bondi Beach where to stay in Sydney for the beach

One thing’s for sure: you cannot visit Sydney without spending at least a couple of hours on the beach! Just a 15-min drive Southeast of the CBD, you’ll find Bondi – a world-famous white sand beach! If you’re planning a relaxing beach holiday, Bondi is by far the best place to stay in Sydney.

Naturally, the main activity here is relaxing and soaking up the sun on Bondi Beach (map), probably the most well-known out of Sydney’s Eastern beaches. When you’ve had enough of the sun, you can seek shelter in one of the many beach bars and restaurants. And if you’re into surfing, Bondi Beach is the ultimate spot to showcase your skills.

Even though you can spend your entire day (and maybe even night) on the beach, if you’re looking for something else to do, Bondi won’t disappoint. The Bondi Pavilion (map) is a cultural center featuring a gallery and a theater and hosting a wide range of cultural events.

If you’re on the hunt for some stunning views, I recommend taking the Bondi to Bronte Coastal Walk (map)! This walking trail starts at Bondi Beach and ends at Bronte Beach (map), a smaller, more laid-back beach. The views are amazing throughout the day, but they’re truly breathtaking at sunset – that’s when you should go for a walk!

And if you’re still looking for more amazing beaches, head to nearby Coogee and spend a day at Coogee Beach (map). It’s an amazing spot for swimming and less crowded than Bondi.

You’ll probably want to explore the Sydney city center as well, but you’ll need a car to do it. Public transportation is reliable, but I prefer renting a car as it gives you much more freedom to explore. I have an entire post with tips on renting a car in Australia, so take a look at that before you get the rental.

Just keep in mind that Bondi is an extremely famous beach spot, and it is ALWAYS full of people – especially in summer! If you really want to escape the crowds, but still be near the beach, Manly is a great alternative – more on this later!

Collage of 3 pics of hotel in Bondi Beach Sydney: a colorful lounge with photo-decorated walls, a cozy seating area near a window, and a simple bedroom with a double bed and framed pictures.

Luxury (US$270 and up)

QT Bondi – a 5-star hotel located just a 5-min walk from the beach, the QT offers stylish guest rooms and apartments, private parking at an additional charge, and in-room laundry facilities.
Adina Apartment Hotel – a short walk from the beach, this aparthotel features a swimming pool, a fitness center, and a hot tub. Each of the units has a private balcony, a desk, and an iPod docking station.

Mid-range (from US$160 to US$270)

Hotel Bondi – a 3-star hotel located across the road from Bondi Beach, with a bar, restaurant, and gaming facilities. There’s a shared balcony where you can relax and you can order room service.

Budget (up to US$160)

Wake Up! Bondi Beach – just steps away from the beach, this hostel offers private budget rooms and beds in shared dorms and a rooftop terrace furnished with deck chairs and umbrellas, providing panoramic views of Bondi Beach.
The Baxley Bondi – a quick drive away from Bondi Beach, this accommodation has a tour desk, a garden, and a shared lounge. The rooms have a Wi-Fi connection and a TV with satellite channels.

4. Surry Hills – the coolest area to stay in Sydney

Surry Hills & Paddington the coolest area where to stay in Sidney

Looking for that cool, eclectic vibe? Well, then, head to Surry Hills! This trendy area is located just South of the CBD and has a rich cultural scene, hip coffee shops, and many nice eateries. Whether you’re a foodie, a fashionista, or just want a taste of the local experience, Surry Hills is the best location to stay in Sydney.

During your stay here, you absolutely have to explore Crown Street (map) and Cleveland Street (map)! These 2 streets have the largest concentration of cafes, restaurants, and boutiques, making it especially popular among the younger crowds.

I suggest grabbing a gelato from Gelato Messina Surry Hills (map) on Crown Street and trying one of the Japanese dishes at RK San (map) on Cleveland Street.

Surry Hills is not as large as many of the other neighborhoods on this list, but it’s ideally located for exploring other parts of the city. From here, you can easily reach Paddington and do some shopping at the Paddington Markets (map) – open on Saturdays – and Darlinghurst, where you’ll find the Australian Museum.

TIP: The Australian Museum is free of charge for everyone (except the special exhibitions), so it’s a great place to visit if you’re looking to save some money.

By the way, Sydney Central Station (map) is located on the outskirts of Surry Hills, so it will be SO easy to get around the city! However, the Sydney CBD is just a 30-min walk away, so you can also get there on foot!

Collage of 3 pics of hotel in Surry Hills Sydney: a brick building with a sign reading "Big Hostel," an outdoor pool in a residential area, and a modern bedroom with large windows and green curtains.

Collage of 3 pics of hotel in Surry Hills Sydney: a brick building with a sign reading

Luxury (US$220 and up)

Crystalbrook Albion – one of the best boutique hotels in Surry Hills. Offering 5-star service, it’s located very close to many important spots in this neighborhood, including Sydney Central Train Station and Belmore Park.
202 Elizabeth – this 5-star hotel provides a complimentary continental breakfast, a concierge service, and a 24/7 front desk. The hotel’s atmosphere is very romantic, and it’s an especially good choice for couples.

Mid-range (from US$100 to US$220)

Adina Apartment Hotel – I present to you one of the best places to stay in Sydney – this cool aparthotel has a cool swimming pool in the garden, a barbecue area, spa pool, sauna and more.
Best Western Plus Hotel Stellar – in a central location, this hotel has spacious apartments with a kitchen and kitchenette. There’s an on-site lounge where guests can relax and a bar where they can try specialty coffee and snacks.

Budget (up to US$100)

Big Hostel – at this hostel, you can stay in mixed and female-only dormitories, all air-conditioned. You can relax on the rooftop terrace, cook in the communal storage, and benefit from luggage storage.

5. Manly – where to stay in Sydney for a relaxing vibe

Manly where to stay in Sidney for surf

Manly is one of the most popular suburbs of Sydney and one of the most laid-back vacation spots in New South Wales (NSW). Facing the Sydney Harbour, Manly is just a 20-min ferry ride away from the CBD, and it attracts people who are looking for a relaxing vibe, surfing, and family-friendly spots.

Even though Manly may not seem like the best spot for a tourist stay, that’s far from the truth! This is where I stayed during my visit to Sydney, and it’s an amazing spot for couples and families alike. It has a couple of great beaches, many nice restaurants, and quite a few surfing spots.

Shelly Beach (map) is the most popular swimming spot in Manly. Situated in a cove, this beach is sheltered from the waves, so it’s an excellent choice for families with young kids. Manly Beach (map), on the other hand, gets some great waves, so it’s more popular for surfing, although there are designated swimming areas.

Besides the fantastic beaches, Manly is also home to the Sydney Harbour National Park (map), where you’ll find many hiking trails and picnic spots, and you might even get to spot some wildlife. From North Head (map), you can enjoy the best views of the Sydney Harbour and get access to some dive sites if that’s something you’re into.

As I mentioned, there’s a direct ferry from Manly to the Sydney CBD, specifically Circular Quay. The Manly Fast Ferry will get you across the harbor in 20 minutes, and the ride is very scenic. More info on the ferry schedule is available here.

Collage of 3 pics of hotel in Manly Sydney: a large bed, a swimming pool marked "MP", and a balcony with a view of a waterfront and trees. People are lounging by the pool with drinks.

Collage of 3 pics of hotel in Manly Sydney: a large bed, a swimming pool marked

Luxury (US$220 and up)

Manly Pacific Sydney – this beachfront hotel has various facilities, including a restaurant, a bar, and a fitness center. Room service and currency exchange are also available to guests.
Q Station – this upscale, family-friendly hotel is situated near the beach and features a restaurant serving local cuisine, an arcade/game room, and free self-parking. Rooms are air-conditioned and have a laptop-friendly workspace.

Mid-range (from US$120 to US$220)

Manly Paradise Motel – right across the street from Manly Beach, this 4-star motel boasts sea views and individually furnished apartments with private balconies and coffee-making facilities.
Peppers Manly Beach – this comfortable 3-star hotel features an outdoor pool, a terrace, and a garden. The front desk is open 24/7 and it offers express check-in and check-out.

Budget (up to US$120)

Stoke Beach House – this newly renovated hotel offers a complimentary daily breakfast, yoga classes, a cinema room, and a pool table. Surfboards, snorkeling equipment, and bicycles are free to use for up to 2 hours.
Manly Bunkhouse – this backpacker hostel has private rooms as well as dormitories, a large common room, a communal kitchen, and a large courtyard with barbecue facilities.

6. Potts Point – where to stay in Sydney on a budget

Aerial view of a coastal city with buildings, parks, green spaces, and surrounding water bodies on a clear day.

Are you traveling to Sydney looking for a party, but you’re on a tight budget? Don’t you worry – Potts Point can deliver on both fronts! The neighborhood is located a 25-min walk East of the CBD and has a buzzing nightlife scene that attracts both tourists and locals.

Potts Point is a larger area, so there are a few smaller neighborhoods within the area limits. The one that stands out the most is Kings Cross, the epicenter of Sydney nightlife. Friggitoria (map) is one of the most popular restaurants in the neighborhood, and Piccolo Bar (map) is a fantastic cocktail bar with a very nice interior.

Kings Cross is also known as the city’s former Red Light District. Although it’s no longer a gathering spot for ladies of the night (and gentlemen, too), you might still see some activity here and there, so not a good place to bring your kids.

Other spots worth checking out in Potts Point include Llankelly Place (map), a foodie hub with many international eateries, and the El Alamein Fountain (map), which boasts a very cool spherical design.

Finally, I have to point out that this is the best area to stay in Sydney, Australia, if you’re traveling on a budget. There are quite a few hostels and budget hotels, but also options in other price categories – you’ll find my selection below.

Collage of 3 pics of hotel in Potts Point Sydney: a dining room with a green accent wall, a bedroom with a fireplace, and a group of people seated outside a colorful establishment named "Mad Monkey Potts Point.

Luxury (US$210 and up)

Spicers Potts Point – this cool 5-star property is one of the best hotels in this cool neighborhood! It has spacious rooms, an amazing on-site bar and restaurant, and a top location!
Macleay Hotel – an upscale Art Deco hotel with a rooftop terrace, a hair salon, and dry cleaning/laundry services. You can also work out at the gym and enjoy dinner at the on-site Korean restaurant.

Mid-range (from US$130 to US$210)

Hotel Challis – this comfortable hotel has a terrace and a garden, plus laundry facilities. Each of the rooms is air-conditioned and has a Wi-Fi connection and a workspace.
Holiday Inn – guests can order room service 24/7 and enjoy the comfort of their clean and spacious rooms. The gym is also open around the clock, and the on-site restaurant serves Mediterranean cuisine.

Budget (up to US$130)

Mad Monkey Potts Point – a newly renovated hostel offering free nightly events and nightly family dinners, as well as complimentary Wi-Fi and gym access. You’ll be staying in 4 and 6-bed dorms and have access to shared bathroom facilities.
The Jensen – an affordable hotel with concierge services and luggage storage, individually furnished rooms with private bathrooms and free toiletries, and a lobby where you can grab a cup of complimentary tea and coffee.

A commercial airplane is parked at an airport with the city skyline featuring tall buildings and a cloudy sky in the background.

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Where to Stay in Sydney → 6 TOP Areas (+ Hotels w. Prices)

Quick Picks for Your Stay