We just got back from Sydney and stayed at the Coogee Crowne Plaza for 3 nights at the start of the trip. For the last 2 nights, when we got back to Sydney, we stayed at the Coogee Medina. (We needed to stay close to Maroubra where MIL lives, that's why we chose Coogee.) I loved the area! The Medina would be great for families. I know there are several of them throughout Sydney, so you may want to look into them to see if there's one that would be more conveniently located.

Let's put this "safety" issue to bed, guys. Yes, there are alleys in Kings Cross that I'd have second thoughts about exploring in the small hours of the morning, if sober. But you'd have a much bigger problem wandering down the main street of some towns in outback New South Wales. Would you worry about wandering around most areas of Manhattan at night? Well, I might be stupid, but I didn't see any reason to. The South Bronx? Ah yes, maybe. Sydney, like all of Australia's state capitals, is not a place where tourists, or anyone else, are routinely mugged.

Somebody mentioned Redfern. Most of that area has been yuppified. Two of my children have lived/are living there, and I've visited them often. In the whole area there is one (1) block (conveniently referred to as "The Block") that attracts the attention of the local constabulary. 100 metres away, where my son lives, it's not an issue. As he says, "They keep to themselves - it's a different world down there."