5 Best Hotels in Sydney, New South Wales

On a quiet stretch in the trendy shopping precinct of Paddington, this small, friendly, family-run hotel has simple accommodations at an outstanding price. Garden rooms overlook an Italianate central courtyard and pool; they are the largest and the most quiet. Triple-glazed windows mean rooms overlooking bustling Oxford Street aren't bombarded by traffic noise. Those on the third floor have harbor views. All rooms have Foxtel (cable TV), there is free Wi-Fi in the garden rooms and public areas, and guests can use bicycles (perhaps for a cycle around nearby Centennial Park) for free. Discounts are given to guests when dining at the nearby Rose, Shamrock and Thistle pub and bistro. The location, close to shops, restaurants, and nightlife, is a 15-minute walk from the city center.

"Simply comfortable and affordable" is the slogan at this 1920s-style hotel at the leafy end of Potts Point, and it's hard to disagree on either count. Location and price are also major draws at this friendly hotel, which has been recently upgraded with the addition of 17 new rooms (converted from a former first-floor restaurant), each with modern facilities and Wi-Fi. All rooms now have flat-screen TVs, new drapes, and desk furniture. Flexible "dynamic rates" can see a standard room sell as low as A$89 and one of the new "queen rooms" for $A139 so check online for deals. Some rooms have balconies; studio apartments include kitchenettes. A Greek restaurant, the Apollo, on the ground floor is open for dinner and lunch on Friday and weekends.

In its character as well as its dimensions, this friendly B&B on a quiet part of a bar- and club-lined street is reminiscent of a European pensione. Simple, tastefully outfitted rooms come with high-quality beds and linens, as well as wooden blinds over the windows. Access to the four floors of rooms is via a small staircase, and there is no elevator. There are single, double and superior rooms, the latter suitable for a family. Despite its proximity to the heart of Kings Cross, the hotel has a relaxed, serene atmosphere. There's a two-night minimum stay; book online for cheaper rates.

If you're tired of the standard travelers' rooms, this renovated Victorian terrace house may be just the tonic. Having undergone a massive conversion into 21st-century cool, it sports a decorating scheme of brash colors—blues, yellows, and creams splashed against reds—and furnishings (platform beds and chaise lounge) that might have come direct from a Milan design gallery. Every room is slightly different, has a kitchenette, and was recently fitted with a new flat-screen TV. Behind the glamour is a comfortable, well-run hotel with friendly, attentive staff. This is one of the few city hotels that welcome guests' dogs, and it's near many good restaurants.

Situated in the heart of the historic Rocks precinct, the lodging has a boutique-hotel style. The accommodations are a stone's throw from the attractions around Circular Quay, and several rooms have large picture windows with spectacular views of the Opera House. (The poolside breakfast lounge has a similar view.) If you hanker for something a little different—and more charming—seven historic two-story houses are available. Each has a bedroom and bathroom upstairs, and lounge (with sofa bed) and kitchen downstairs. The houses are ideal for families or extended-stay vacationers.