Sydney was the last city we explored in Australia during our first trip around the world in 2020 – it was here that we ended our Pacific Highway road trip, and we quickly realized that choosing where to stay in Sydney makes all the difference. With very distinct neighborhoods, the atmosphere changes quite a bit depending on the area – from the bustling downtown to the more relaxed harbor shores. So, we decided to create this guide with the three best areas to stay in Sydney, with suggestions for tested and well-rated hotels for different styles and budgets.
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Best Areas to Stay in Sydney
- Sydney CBD (Central Business District)
For those who want to be in the center of everything – attractions, transportation, shopping, and restaurants. Ideal for a first visit. - The Rocks & Circular Quay
A historic neighborhood with lots of charm, perfect for those looking for culture, great views, and proximity to the city’s main icons. - Darling Harbour & Pyrmont
A modern area by the harbor, excellent for families, with attractions like the aquarium and plenty of outdoor spaces.
Sydney CBD
The city’s financial and commercial center is also where many of the best-located hotels are. Staying here makes getting around much easier and allows you to explore the city on foot. It’s a busy area, great for those who want to optimize their time and have everything nearby.
Best hotels in Sydney CBD
- Budget: Megaboom City Hotel – Unbeatable location right downtown. Simple but comfortable rooms with great value.
- Mid-range: YEHS Hotel Sydney CBD – Great value for money, ideal for those who want comfort without spending too much.
- Luxury: Meriton Suites Sussex Street – This is where we stayed. Spacious and modern apartments, excellent for long stays or families.
The Rocks & Circular Quay
This was one of the areas that surprised us the most. It’s like stepping into an older Sydney, with historic buildings, cozy bars, and incredible views of the Opera House and Harbour Bridge. Staying here means immersing yourself in the city’s most authentic and elegant side.
Best hotels in The Rocks & Circular Quay
- Budget: YHA Sydney Harbour – A modern hostel with harbor views. Excellent budget option without compromising on location.
- Mid-range: Rendezvous Hotel Sydney The Rocks – Comfortable with excellent location and potential for rooms with views.
- Luxury: Four Seasons Hotel Sydney – A luxury classic with spa, pool, and epic views of the city’s icons.
Darling Harbour & Pyrmont
More relaxed but still vibrant. Darling Harbour is ideal for those traveling with children or wanting something less hectic than the CBD. Museums, parks, and waterfront restaurants make this area a very balanced choice.
Best hotels in Darling Harbour & Pyrmont
- Budget: Mariners Court Hotel – Simple and functional, with breakfast included. A good base to explore Pyrmont.
- Mid-range: Aiden by Best Western Darling Harbour – Comfortable hotel with modern design. Excellent views.
- Luxury: Crown Towers Sydney – One of the city’s most luxurious hotels, with infinity pool and stunning views.
Tips for choosing where to stay in Sydney
- If it’s your first time in Sydney, the CBD is the most practical base.
- For a more charming experience with memorable views, The Rocks is unbeatable.
- Darling Harbour is excellent for those traveling with children or wanting something more relaxed but still central.
- Consider how long you’ll stay: for longer stays, apartment hotels are a great option.
- Sydney has good transportation, but it’s worth staying near a metro station (train or light rail).
FAQs – Frequently asked questions about where to stay in Sydney
What is the best area to stay in Sydney for a first visit?
Sydney CBD (Central Business District) is the most practical choice for a first visit, thanks to its central location and easy access to main attractions and transportation.
Where can I find good views of the Opera House and Harbour Bridge?
The Rocks & Circular Quay are the ideal areas for incredible views of the Opera House and Harbour Bridge, combining historic charm with a privileged location.
What is the best area for families with children?
Darling Harbour & Pyrmont offer a more relaxed atmosphere, child-friendly attractions like aquariums and museums, and family hotels, making them an excellent choice for families.
Are there budget accommodation options in Sydney?
Yes, there are several well-located budget options, like the Megaboom City Hotel in the CBD and YHA Sydney Harbour in The Rocks, which offer good quality at an affordable price.
Is it better to stay in a traditional hotel or an apartment hotel in Sydney?
If you’re staying several days, apartment hotels like Adina Apartment Hotel are ideal for their flexibility and amenities. For short stays, traditional hotels are practical and comfortable.
