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Darling Harbor or the Rocks for Sydney?

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I need help in deciding where to stay next month (September) in Sydney? Darling Harbor or the Rocks? Most of the places that I have looked at are either extremely expensive or only have double bed rooms and I am traveling with my adult daughter so wanted twin beds.
I temporarily have held a hotel on Walsh Bay called the Sebel Pier One hotel but am wondering whether it is worth the price and location?
We will have no car so will use public transportation to do daytrips to Blue Mountains,shopping,museums,Bondi Beach etc.
Any thoughts or recommendations?
We are staying for 6 mights so most places are running between 1200-1500AD for the stay.

Thanks for any help!

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