The Best Places to Stay in Sydney – A Local Guide for 2025

The best places to stay in Sydney are close to the city and Sydney Harbour, but have you thought about spending some time in Sydney’s stunning beachside suburbs?

The decision about where to stay in Sydney is key to a successful and enjoyable holiday. If it’s your first visit, you’re travelling solo, don’t know your way around, or you’re trying to stick to a budget, choosing the right place to stay can make or break the trip.

As a local who lives in Sydney, I’ve compiled this guide to help you decide where to stay in Sydney, Australia’s most scenic city. This article looks at the pros and cons of the main areas to stay in Sydney and I’ve included some stunning beachside suburbs you may not have heard about.  

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Best Area to Stay in Sydney for First Time Visitors

For first-time visitors, the best location to stay in Sydney is at The Rocks in the heart of the city. It’s scenic, central and close to the main attractions. Sydney CBD, or Darling Harbour, are also a good choice for a short stay.

If you’re on a budget, inner city suburbs such as Glebe, Newtown or Surrey Hills are a cheaper option. They’re a few kilometres out of the city centre but offer access to the city by public transport.

Further away from the city centre, beachside suburbs like Bondi Beach, Manly and Cronulla offer a taste of the laid-back surf vibe in Sydney’s stunning coastal suburbs.

Some of the best areas to stay in Sydney are on a ferry route. Consider staying in The Rocks, Darling Harbour, Manly or Watsons Bay to get around Sydney by ferry.

Where to Stay in Sydney

1. The Rocks – Scenic, Central & Historic

Best location to stay in Sydney for, solo travellers & couples on a short stay

**My top pick for the best place to stay in Sydney City is The Rocks.

It’s the oldest part of town and has a stunning harbourside location, close to main attractions, like the Sydney Opera House and Harbour Bridge and right next to Circular Quay, a public transport hub with a bustling atmosphere day and night.

The Rocks is very central if you have limited time and want to be in the city centre. It’s ideal for solo travellers and is one of the best places to stay in Sydney for tourists. You’ll pay more to be in the heart of the city, but I think it’s worth it!

The Rocks: Pros

• Central Location in Sydney
• Stunning harbour views on the doorstep
• Close to the Sydney Harbour Bridge, Opera House & Royal Botanical Gardens
• Near Circular Quay with excellent public transport options
• Close to the CBD
• A historic area with a lot of character

The Rocks: Cons

• Expensive
• A popular tourist area that can be crowded

Where to Stay in Sydney: The Rocks

Here are my suggestions for the best places to stay in Sydney in The Rocks

Budget:  Sydney Harbour YHA is in a fabulous location in The Rocks near Circular Quay and a short walk from Sydney Harbour Bridge, the Opera House and the Botanical Gardens. This YHA has a rooftop terrace with a stunning harbour view and is built over The Big Dig, an archeological site.

Mid Range: The Rendezvous Hotel has an upmarket location at the Rocks. The rooms are clean and comfortable and there’s a gym and a pool.

The Sydney Harbour Hotel has a fabulous location near the cruise ship terminal at Circular Quay. It has rooftop views, and a pool and is close to public transport and cafes.

Luxury: The Four Seasons Hotel has one of the best locations in Sydney near Circular Quay. Guests love the service at this popular five-star hotel and the reviews are exceptional.

The five-star Shangri-la Hotel also has a superb location at Circular Quay and is an elegant place to visit for a coffee or drink with friends. It’s near The Rocks and gets excellent reviews for its five-star service and spectacular harbour views. The nighttime views from the Blu Bar are stunning!

TIP: The Rocks is one of the best places to watch a glorious Sydney sunrise over the harbour at Dawes Point. Walk around the point to Mrs Macquarie’s Chair for the best sunset views in Sydney.

Where to Eat in The Rocks

• The MCA Café at the Museum of Contemporary Art near Circular Quay is a personal favourite and has a fabulous view of the Sydney Opera House. It’s a great choice for an inexpensive lunch.

• La Renaissance Patisserie is an attractive cafe that serves cakes, desserts, and French pastries in The Rocks Square. It’s the perfect place to stop for a coffee in the heart of the historic part of Sydney.

• The famous Fortune of War Hotel is Sydney’s oldest pub. Popular with sailors and soldiers since its construction in 1828, the Fortune serves hearty pub food in a welcoming atmosphere. It’s a good place to grab a beer and a meal.

• The heritage-listed Harts Pub is another good choice for craft beer and a pub meal in an old-style corner hotel in the Rocks.

2. Sydney CBD – Business & Shopping Precinct

Best for Business travellers and tourists on a short stay

Sydney’s CBD and shopping Precinct is further away from the harbour but it’s still one of the best areas to stay in Sydney. There’s a wide choice of hotels but you’ll have to catch a bus or a train to get to Circular Quay, Sydney Cove or Sydney Harbour.

This area is slightly cheaper than The Rocks, but accommodation anywhere in the city centre tends to be expensive.

Sydney CBD Pros

• A Central location close to shopping malls and department stores
• Good public transport links to access the main sights, such as the Sydney Opera House and Harbour Bridge
• Closer to Darling Harbour & Chinatown restaurants
• Less expensive than The Rocks

Sydney CBD Cons

• 1.5 kilometres from Sydney Harbour & Circular Quay
• Less scenic with city views rather than water views
• One of the least safe areas in Sydney at night

Where to Stay in Sydney CBD

 Budget: Sydney Central YHA located around 4 kilometres from Sydney Harbour near Central Station, is a good option for solo travellers, families and anyone on a budget. Central Station is a transport hub and close to Chinatown, one of the best places in the city for eating out.

**For solo travellers, the area around Central Station is one of the least safe areas in Sydney, so take care at night if you’re out alone. Catch a train, light rail or bus from Central Station to Circular Quay and the Opera House rather than walking and stick to well-lit, busy areas.

Mid-Range: The Sydney Hotel QVB has a super location in the centre of Sydney near the historic Queen Victoria Building and shopping arcade, right next to Town Hall station. It’s a newer hotel and good value for money, although the rooms are small.

The Sydney Hotel Harbour Suites also has a central location near Darling Harbour, a short walk from Town Hall station.

Luxury: The Meriton Suites in Sussex Street offers easy access to the city’s top attractions, shopping districts, and entertainment venues and gets exceptional reviews.

The Hilton Sydney is another popular option in a great location near Town Hall and Darling Harbour.

Sofitel Darling Harbour is a 5-star hotel that offers breathtaking views and excellent service in a fabulous location in Darling Harbour.

Where to Eat in the Sydney CBD

• The Queen Victoria Building has plenty of options for eating out in the Sydney CBD.
• Chinatown has a great selection of Chinese restaurants for delicious food on a budget, such as Loon Foon & Royal Palace Seafood.

• Jordon’s in Darling Harbour is one of many popular restaurants in the area.

3. Sydney’s Inner City Suburbs – Trendy & Bohemian

Best for young people, LGBTI and budget travellers

Sydney’s inner-city suburbs. Darlinghurst, Glebe, Surry Hills and Newtown are a little bit further from the city centre. These older, inner-city areas have been renovated in recent years and have tree-lined streets and rows of pretty terrace houses.

These suburbs are some of the best places to stay in Sydney for young people looking for nightlife. There’s a more bohemian, trendy vibe, and these areas tend to be “gay-friendly”.

Sydney’s Rainbow Ribbon is the western section of Oxford Street, Darlinghurst, Surry Hills, Newtown, Potts Point and Elizabeth Bay. And the seedy red-light district is right next door at Kings Cross.

Take care if you’re out alone at night in these areas.

Sydney Inner Suburbs Pros

• Trendy and Bohemian atmosphere
• Lots of Bars, Restaurants
• Good public transport links
• Less expensive than other parts of Sydney

Sydney Inner Suburbs cons

Less safe than other parts of Sydney

• Further away from the city centre
• A busy nightlife area that can be noisy & seedy, especially at night
• Homeless people

Where to stay in Sydney’s Inner City Suburbs

Budget: Azzurro Boutique Hotel Surrey Hills is an attractive guesthouse that’s full of old world charm and has the perfect location for cafés and vintage shopping.

Mid-Range: The General Gordon Hotel in Sydenham is a bit further away from the city, but this recently renovated hotel is opposite the station. Trains to the city take around 15 minutes, and I can personally recommend the onsite restaurant, which serves excellent pub meals.

Upper Mid-Range: The ADGE Apartments in Surrey Hills get outstanding reviews for the central location in a trendy part of town near Oxford Street, cafes and nightlife.

Where to Eat in Sydney’s Inner Suburbs

Pott’s Point also has a great selection of cafés, restaurants, and bars such as The Little Italian Place, The Melted Monster or Small’s Deli,

Glebe Point Road is the place to go in Sydney for trendy cafes such as Dirty Red, and I have fond memories of the Glee Books Café.

I can also recommend Bar Cleveland in Surrey Hills for a beer and a pub meal, or Jane Surry Hills for great service and atmosphere

The General Gordon Hotel in Sydenham is another favourite pub for a drink with friends and delicious pub food.

4. Sydney Airport

Best for travellers, layovers or a short stay

If you need easy access to Sydney Airport for late-night departures or early morning arrivals, there are some good options but it’s also worth considering the area for a short stay or even a beach break at Brighton-le-Sands.

The airport is only 15 minutes (8 kilometres) from the CBD, and has good public transport links,

 Sydney Airport Pros

• Convenient for late-night and early-morning flights
• Sydney Airport is only 15 minutes from the City centre by train
• Brighton-le-Sands is close to the airport & has a bayside location with a beach for swimming and coastal walks

Sydney Airport Cons

• Further out from the city centre
• Longer 20 – 60 minute commute time to the city depending on transport links

Where to Stay Near Sydney Airport

Lower Mid-Range: The Travelodge Sydney Airport is a great value for money and perfect for a short stay, with easy access to public transport. This popular Sydney hotel is very close to the airport and offers an airport shuttle service.

Upper Mid-Range: The Novotel at Brighton-le-Sands has a lovely beachside location on Botany Bay and is only a 10-minute drive from the airport.

Luxury: Branksome Hotel & Residences are a great choice if you’re looking for a little extra comfort and a superb location right near the airport. This hotel offers studio apartments with panoramic views and great service.

Where to Eat Near Sydney Airport

Head to Brighton-le-Sands for beachside cafes and restaurants. There are plenty to choose from. Some of my personal favourites are Thai on the Beach and Omnia (Lebanese), and I can also recommend the local Greek restaurants such as Kamari or Meet the Greek.

5. Sydney’s Eastern Suburbs

The Eastern suburbs are one of the most exclusive areas to stay in Sydney and it’s here that you’ll find the famous Bondi Beach.

Rose Bay, Watson’s Bay and Vaucluse are nearby suburbs with some of the city’s best harbour views. They’re perfect for a romantic getaway with beautiful Sydney Harbour Sunsets.

Eastern Suburbs Pros

• Ocean and harbour beaches for relaxing, swimming & surfing
• Just a few kilometres from the city
• Good public transport links to the city
• Stunning scenery & coastal walks

Eastern Suburbs Cons

• Expensive
• Several kilometres from the city centre

Bondi Beach

Best for younger travellers, backpackers and trendsetters

East of the city is the famous Bondi Beach, Sydney’s most famous surf beach.  It’s the best neighborhood to stay in Sydney for surfers, and backpackers. There’s a hip and trendy vibe, and the beach is often packed full of beautiful young bodies in bikinis and board shorts.

Swimming, surfing and beach volleyball are popular, but my favourite thing to do in Bondi is to walk along the clifftops on the beautiful Bondi to Coogee coastal path.

The Bondi Icebergs Club is also worth visiting, especially at high tide. I love watching the waves filling up the ocean pools.

Bondi Beach Pros

• Sydney’s most famous surf beach
• Surfing, swimming & relaxing on the sand
• Celebrity spotting
• Stunning coastal scenery & walks
• Many cafes, restaurants and bars

Bondi Beach Cons

• Overcrowded & full of tourists
• Expensive
• No shade around the beach
• Buses are the main public transport from Bondi Beach
• The train station is a few kilometres away at Bondi Junction, and you have to catch a bus from Bondi Beach to the train station or into the city.
• A 30+ minute commute time to the city, depending on the traffic.

Where to stay at Bondi Beach

Where to stay at Bondi Beach

Budget: Wake Up! Bondi Beach is a small hostel in a perfect location right on Bondi Beach with a stunning rooftop view.

Mid-Range: Hotel Bondi is a 3-star hotel in a fabulous spot opposite the famous Bondi Beach. The rooms are comfortable, and the service gets excellent reviews.

Luxury:  QT Bondi offers spacious and beautifully decorated studio apartments, just 200 metres from the beach. Guests love the location and the service.

Where to Eat at Bondi Beach

There’s a wide selection of cafes, ice cream shops, restaurants and pubs behind the beach

• The beachside Lamrock Café is a convenient stop for coffee and a meal. I have great memories of eating here.
• Locals love the relaxed cafes around Hall Street 
• The Bondi Iceberg’s Club is a great choice for a drink or a meal with ocean views
• I also love the view from the North Bondi RSL Club, a great spot for a sundowner at Bondi Beach

Watsons Bay

Best for couples and solo travellers, and families looking for a quiet beach retreat

Watson’s Bay is a quieter option in Sydney’s Eastern suburbs with several lovely harbour beaches. Located on the South Head of Sydney Harbour, Watson’s Bay is a well-established and scenic area.

It’s the best place in Sydney to stay for couples, beachgoers and solo travellers looking for a peaceful beach escape.

Watson’s Bay Pros

• One of Sydney’s most exclusive areas
• Stunning harbour views & coastal walks
• Quieter than Bondi Beach or Manly
• Great sunsets over the harbour
• Beautiful harbour beaches for swimming,
• Easy access to the city by ferry.

Watson’s Bay Cons

• No surf
• Expensive
• 30 minutes by ferry to the city
• Less choice of accommodation

Where to Stay in Watson’s Bay

Upper Mid-Range: Watsons Bay Boutique Hotel.  A perfect getaway located near the ferry wharf at Watsons Bay, close to the city but far enough away to truly relax in an exclusive suburb on Sydney Harbour.

Where to Eat at Watson’s Bay

• Doyles Seafood Restaurant in Watson’s Bay. I have fond memories of romantic meals at one of Sydney’s best-known restaurants
• Takeaway fish & chips at the park or the beach

6. Sydney’s Northern Beaches

On the north side of Sydney Harbour, there are more enticing beaches along the Pacific coastline from Manly to Palm Beach. Sydney’s Northern Beaches are well served by buses from the city centre and Manly.

The Northern Beaches are one of the best places to stay in Sydney outside the CBD for chilling out and enjoying the Sydney beach vibe.

Manly Beach

Best for tourists, couples & families looking for a beach holiday

Best for surfers, couples and families looking for a beach holiday in Sydney

North of the city, Manly Beach is another popular place to stay in Sydney and a good choice for a beach holiday with easy access to the city.

Manly boasts one of Sydney’s most famous surf beaches and is just 30 minutes by ferry from Circular Quay.

One of my favourite things to do in Sydney is to catch a ferry to Manly, stroll through Manly Corso to the surf beach and treat myself to a coffee or an ice cream.

Manly Beach is a lovely day trip from the city, but it’s also a great place to stay in Sydney for tourists and first-timers.

Manly Beach Pros

• Famous Surf Beach & laidback surf vibe
• An upmarket Sydney area
• Lots of cafes, restaurants and pubs
• Broad range of activities like swimming, surfing, kayaking, snorkelling, beach volleyball
• Stunning coastal walks & water views
• Easy access to the city by ferry
• Less expensive than Bondi

Manly Beach Cons

• Expensive
• 30 minutes commute to the city by ferry
• Less choice of accommodation
• Can be crowded on weekends

Where to Stay in Manly

Mid-Range: Manly Paradise Motel and Apartments. Perfect for a beach holiday on Manly Beach, the rooftop pool is a hit, and so are the lovely views.

Upper Mid-Range: Quest Manly is an exceptional choice located near the ferry wharf for easy access to the city: a short walk to beaches, shops, pubs and restaurants.

Where to Eat in Manly

You’ll be spoilt for choice with cafes, restaurants and bars around the beautiful bay and beach area.

• Head to Manly Wharf or Manly Corso for a meal
• I love walking around the point to the Bower Café near the Fairy Bower Pool
• The Boat House on Shelly Beach is another great choice if you enjoy walking.

Barrenjoey & Palm Beach

Best for couples and families

If you’re still wondering where to stay in Sydney for a beach holiday, Barrenjoey & Palm Beach are less crowded than Bondi or Manly and even more beautiful in my opinion. 

Palm Beach is one of the best places to stay in Sydney for couples who fancy a relaxing beach holiday on a movie set. Couples will love the seclusion, and families will enjoy beach and water activities and hiking.

Climb to the top of Barrenjoey Headland for sweeping views of Pittwater, Broken Bay and Palm Beach.

You could easily spend a few days exploring the many stunning beaches and enjoying the serene, leafy water views of Pittwater at the mouth of the Hawkesbury River.

Barrenjoey & Palm Beach Pros

• Stunning scenery & a beautiful surf beach
• Palm Beach is where the TV Drama “Home and Away” was filmed; look for the lighthouse, the beach and the Summer Bay Surf Club and explore the area on a Home and Away location tour for a full immersion.
• Fly there by seaplane
• Coastal walks, sailing, kayaking, swimming, surfing

Barrenjoey & Palm Beach Cons

• 30 kilometres from the city – about an hour and a half by bus from the CBD.
• Very quiet
• An Expensive area
• Less choice of accommodation

Where to Stay at Palm Beach

Upper Mid-Range: Barrenjoey House: Located near the ferry wharf, Barrenjoey House is the perfect place to base yourself for exploring Sydney’s far Northern Beaches with some great day trips right on your doorstep.

Where to Eat in Palm Beach

• I’ve enjoyed eating at Dunes in the park behind Palm Beach
• Barrenjoey House also has a Restaurant & Bar
• The Joey Palm Beach is known for its fabulous location & water views (formerly Barrenjoey Boatshed)

7. Sydney’s Southern Suburbs

Best for families, couples & solo travellers

Some of Sydney’s best surf beaches are located south of the city, and they’re far less crowded than Bondi or Manly

Cronulla Beach

If you’re wondering where to stay in Sydney to relax at the beach with a more local vibe, Cronulla is a good choice.

Swim in the surf or the saltwater rock pools that fill up at high tide, enjoy a walk around the point, and sail or kayak in the calm waters of Gunnamatta Bay on the other side of the shops.

Trains run regularly from Cronulla to the city, and you can catch a ferry across the water to Bundeena in Royal National Park, where there are uncrowded beaches, Aboriginal rock carvings, bushwalks and a stunning coastline to discover.

I love this part of Sydney and you could happily spend a few days exploring the area.

Cronulla Beach Pros

• 5-kilometre surf beach
• Less expensive than the Eastern Suburbs & northern Beaches
• Spectacular sunrises
• Beautiful Beach & coastal walks
• Water activities like swimming, surfing, kayaking, hiking
• Close to the Royal National Park – The ferry leaves from Gunnamatta Bay
• Easy public transport with a train to the city
• Lots of cafes, restaurants, pubs and a shopping mall

Cronulla Beach Cons

• 60-minute commute to the city
• Fewer accommodation options

Where to stay in Cronulla

Budget: The Cronulla Motor Inn is a good budget option with clean, tidy rooms and an easy walk to the beach, shops, restaurants and train. Guests say it’s great value.

Mid Range:  Rydges Cronulla Beachside Guests love the clean, spacious rooms, helpful staff, the variety of places to eat and the morning walk along the esplanade to South Cronulla.

Quest Cronulla Beach has clean, comfortable rooms, a pool and a great location near the beach.

The best place to stay in Sydney for first timers is the city centre, even if it is a bit more expensive. My 4-day Sydney Itinerary is a guide to the the best things to see and do.

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