Where to stay in Sydney? The 10 best areas and places 🇦🇺

Wondering where to stay in Sydney? To help you make the most of your visit, we’ve selected some of the best places to stay in Sydney while you explore the surrounding areas.

10 best areas for a stay in Sydney

1. Sydney’s Central Business District, where you spend the night in Sydney for the first time

If you like to be in the middle of the action during your vacation, the Central Business District is one of the best areas in Sydney.

As the hub of the city’s financial district, George Street is a mix of tall skyscrapers and old colonial buildings, international banks and elegant shopping malls, alongside local stores, markets, bars, restaurants and visitor attractions.

Although everything in the area is easily accessible on foot, there are plenty of cabs, public transport and metro stations for those who want to go further afield.

80% of the population of Sydney’s central business district are young, dynamic, hard-working thirty-somethings who live in the area’s many high-rise apartment complexes.

There is also a wide range of accommodation for visitors: 5-star upscale hotels, inexpensive 2-star hotels and backpacker hostels with dormitories and sleeping bags.

For those interested in culture, there are a variety of venues to visit. The Art Gallery of New South Wales regularly hosts international touring exhibitions as well as lectures, film screenings and concerts.

The Hyde Park Barracks Museum was designed by a convict architect and offers an eye-opening insight into gritty colonial life. It also sheds light on the expansion of the penal colony and its impact on Australia’s indigenous peoples.

Lovers of classical music will get their money’s worth in the City Recital Hall, while both local and international rock concerts take place in the Metro Theatre.

For foodies, there is an abundance of restaurants of all kinds. If you haven’t already done so, you should plan a visit to Chinatown to experience a touch of the Orient.

Try Azuma in Chifley Plaza if you prefer sashimi, sushi or other Japanese dishes, or Restaurant Hubert if you prefer French cuisine. The area is a gourmet’s paradise, but also offers plenty of choice for those who prefer an American burger or a rare fillet steak and chips.

THE BEST ACCOMMODATION IN SYDNEY CBD 👇:

• ($$$) Radisson Blu Plaza Hotel Sydney👈
• ($$) The Grace Hotel👈
• ($) The Pod Sydney 👈

2. The Rocks und Circular Quay, the best area for sightseeing in Sydney

The Rocks is located on the south side of Sydney Harbour and borders the central business district. In 1788, the first European convicts left their longboats on the rocky coast and founded a colony, which later became Sydney.

Explore the numerous historic buildings and let yourself be carried away by the history of this period. Visit the Museum of Contemporary Art Australia, the Argyle Gallery and The Rocks Interactive Discovery Museum.

Sign up for one of The Rocks Walking Tours, where your guides will take you back in time with stories about 18th century Sydney and its colonial beginnings.

Stroll across Sydney’s iconic harbor bridge. Visit Susannah Place, a row of four terraced houses built by Irish immigrants in the 1840s, and Cadman’s Cottage, built in 1816.

Stroll through the narrow, cobbled streets, stop for a coffee in one of the many friendly cafés or enjoy a pint in Sydney’s oldest pub and brewery, the Lord Nelson on Kent Street, before exploring the weekly market in The Rocks.

Although the market has more than 100 stalls, there is much more than just the market. The whole family is entertained with workshops on making dolls, journals, mosaics and kombucha tea.

Get a little more active and take part in street dance or try Pilates and yoga outdoors. Even the dog can join in – with yoga for dogs.

Although there are a number of excellent hotels in the area around The Rocks and Circular Quay, you generally have to pay a little more for the fabulous views of the harbor and quays than for a hotel in the central business district.

For the younger generation looking for accommodation in Sydney, the only real option for budget accommodation in The Rocks is the Sydney Harbour Youth Hostel Association.

THE BEST PLACES TO STAY IN THE ROCKS 👇:

• ($$$) Four Seasons Hotel Sydney 👈
• ($$) Rydges Sydney Harbour 👈
• ($) Mercantile Hotel 👈

3. Darling Harbour, the best neighborhood in Sydney for families

On the western edge of Sydney’s central business district and just a few minutes’ walk from the city center is Darling Harbour, a beautiful waterfront and recreational area that offers attractions for the whole group.

Photograph koalas and kangaroos at Sydney’s Wildlife Zoo and sharks and dugongs at Sea Life Aquarium. Enjoy the latest movies on the world’s largest IMAX movie screen. Get active at the latest laser skirmish or try a strike at tenpin bowling.

Add a visit to Madame Tussauds or book a harbor tour with one of the many ferries and charter boats that arrive and depart from the harbor.

Walk to the western side of the Pyrmont Bridge and let the kids climb aboard a submarine, a destroyer and an old sailing ship at the Australian National Maritime Museum.

Enjoy the terrace cafés and bars along the promenade and the street food and fast food outlets on almost every corner.

In the evening, you can round off the evening in the chic bistros, international restaurants and popular nightclubs before returning to your hotel in the early hours of the morning.

If you want to stay where the action is, Darling Harbour has a selection of serviced apartment buildings, boutique hotels and a number of international hotel chains such as Ibis and Novotel.

THE BEST PLACES TO STAY IN DARLING HARBOUR 👇:

• ($$$) Sofitel Sydney Darling Harbour 👈
• ($$) Aiden by Best Western @ Darling Harbour 👈
• ($) Terminus Hotel Pyrmont 👈

4. Surry Hills und Newtown, where you can enjoy the nightlife in Sydney.

Both Surry Hills and Newtown are located in the suburbs of Sydney. Surry Hills is to the east and Newtown to the west of the central business district, although they are only a few kilometers apart.

Both areas are popular with residents and visitors alike, who prefer to live in Sydney away from the hustle and bustle and noise of the city center that prevails around the clock.

Staying outside the city also offers financial advantages. Apartment rents, hotel rooms, food and drink are always cheaper than in the tourist areas of the city center.

Young backpackers and students mix with visitors and workers who prefer to commute into the city, creating a refreshing atmosphere in the pubs, restaurants and clubs of these areas.

There are restaurants and takeaways everywhere in Newtown. Asian restaurants offer Japanese, Korean, Thai, Vietnamese and Cantonese dishes, but European restaurants such as Greek, Italian and French can also be found.

Many of the bars and clubs also benefit from a young, cosmopolitan crowd, with DJs and live music to suit all tastes in many venues.

If you prefer to be out and about during the day but want to stay close by at night, Surry Hills may be the right choice. Although both are very similar, Surry Hills offers a wider range of evening activities.

The Soda Factory in American 50s style offers the usual beers, wines and cocktails as well as movie nights, quiz rounds and special menu evenings. The Venue 505 is a jazz club popular with locals and visitors, while in the streets you will find restaurants, cafés and bars to suit all tastes.

The accommodation in Surry Hills and Newtown is generally cheaper than in the city center and offers a good selection of hostels and budget hotel rooms.

BEST ACCOMMODATION IN SYDNEY IN SURRY HILLS 👇:

• ($$$) Crystalbrook Albion 👈
• ($$) Club Wyndham Sydney, Trademark Collection by Wyndham 👈
• ($) Big Backpackers Hostel 👈

5. Kings Cross – Sydney’s neighborhood of ill repute?

King’s Cross is located a few kilometers east of Sydney’s central business district and has seen many ups and downs in its 190-year history.

At the end of the 19th century, then known as Woolloomooloo Hill, the area was developed by wealthy businessmen into an affluent residential area with extravagant villas and prestigious colonial houses.

On the occasion of Queen Victoria’s Diamond Jubilee in the 1890s, the name was changed to Queens Cross, before being renamed Kings Cross in 1905. As demographics changed, so did the fortunes of Kings Cross.

As the nearby naval base became more and more frequented, especially after the Second World War, the number of bars, speakeasies, sex shops, strip clubs, brothels and prostitution in the area increased significantly.

It didn’t take long for Kings Cross’ reputation as Australia’s premier red light district to appear in newspapers and travel brochures around the world.

In the last 25 years, however, the pendulum has swung back and new residential developments are being built. Properties in the residential area are becoming popular again with Sydney’s young, hard-working professionals, and fashionable cafés and bars, chic boutiques and trendy restaurants are opening.

The old bars and strip clubs still exist, but they are finding it increasingly difficult to compete with the new, vibrant Kings Cross.

If you’re interested in architecture, there are a few sights you should check out: The fire station, built in 1920 and still in use, Elizabeth Bay House, built in 1835, the Old Fitzroy Hotel, built in 1860, and Kings Cross station, which dates back to the 1970s.

If you’re feeling peckish, pop into a real ‘Pie and Mushy Pea‘ joint. Harry’s Café de Wheels in Woolloomooloo has been operating since 1939 and attracts customers from all over the city. Or perhaps the 1950s Piccolo Bar is more to your taste.

Nowadays, the area also offers a good selection of accommodation for backpackers and visitors – from dormitory-style hostels to 5-star hotels and everything in between.

BEST ACCOMMODATION IN KINGS KROSS 👇:

• ($$$) Spicers Potts Point 👈
• ($$) Regents Court Sydney 👈
• ($) Mad Monkey Backpackers Kings Cross 👈

6. Paddington, a beautiful area for a stay in Sydney

Paddington, an inner-city residential district of Sydney, is home to a high percentage of young and trendy Australian employees as well as expats from all over the world.

Just 3 km from Sydney’s central business district, or five minutes by train, it’s an area of densely packed streets with colorful row houses, stores, bars and restaurants.

Although Sydney’s main shopping street, Oxford Street, runs through the center, you can discover hidden junk and antique stores, bookshops, modern boutiques, galleries and trendy bars and bistros in Paddington’s Labyrinth of side streets.

If you want to know how Australians spend their free time, you should go bargain hunting at the Saturday Market in Paddington. This is where some young, modern Australian fashion designers originally launched their own streetwear brands.

Accommodation for visitors is rather scarce in Paddington. Many of the hotels have been converted into apartments or offices, and those that remain are mostly booked by business travelers.

Still, a faint heart never won a beautiful woman. If Paddington is where you want to stay in Sydney, a little persistence should help you book a hotel.

THE BEST PLACES TO STAY IN SYDNEY IN PADDINGTON 👇:

• ($$) Mrs Banks Hotel 👈
• ($$) The Hughenden Boutique Hotel 👈
• ($) Manor Boutique Hotel Sydney 👈

7. Chinatown, Asian flavor close to everything

Situated between Darling Harbour and Central Station in the south of the central business district, Sydney’s Chinatown has grown steadily since its relocation from The Rocks area in the 1920s and is now the largest Chinatown in Australia.

It’s just a 15-minute walk from the main train station or a five-minute ride on the light rail.

The area, which today encompasses Dixon Street, George Street, Hay Street, Sussex Street and as far west as Darling Harbour, is full of ornate Chinese architecture, colorful arches, swinging lanterns and hanging banners.

In addition to restaurants serving authentic dishes from all over Asia, there are Chinese supermarkets, grocery stores, stores for traditional Chinese herbal medicine as well as stores for cooking ingredients, household goods and clothing.

At the southern end of Dixon Street is Market City, a large building that houses the famous Paddy’s Markets on the first floor and popular brand, clothing and specialist stores on the upper floors.

The numerous food halls also offer an amazing selection of exotic dishes from all over the Asian continent at very reasonable prices.

Chinatown also organizes some spectacular street events that coincide with the Chinese calendar. The most extravagant is the Chinese New Year, which can literally go on for weeks.

If you’re looking for accommodation near Chinatown in Sydney, there are some excellent hotels nearby to suit all budgets that are just a short walk from Chinatown and many of Sydney’s other attractions.

THE BEST PLACES TO STAY IN SYDNEY IN CHINATOWN 👇:

• ($$$) Meriton Suites World Tower, Sydney 👈
• ($$) The Ultimo 👈
• ($) 790 on George Backpackers 👈

8. Darlinghurst and Potts Point, where you can live in an upmarket area of Sydney

Located to the east of Sydney’s central business district, Darlinghurst is an inner-city area bordering Hyde Park and Kings Cross and connected to Potts Point by Victoria Street.

Many years ago, Darlinghurst was an escape area for Sydney’s red light district, but since the 1980s it has undergone massive urban renewal, transforming it into an extremely desirable residential and business district.

The neighborhood is home to a wide range of ethnicities, which is reflected in its cosmopolitan lifestyle, culture and business activities.

Attractions in the area include the East to East night market (fortnightly), the Jewish Museum of Sydney, Darlinghurst Prison (built in the 1820s), Victoria Barracks and Paddington Reservoir.

The western section of Oxford Street, one of Darlinghurst’s main thoroughfares, is also Sydney’s main gay and lesbian nightlife district. Every year in March, the entire street is closed to traffic for Sydney’s world-famous gay and lesbian Mardi Gras.

Although you can walk along Victoria Street to Potts Point, there is a quicker way. The 113 McElhone Stairs, built in 1870, lead from Woolloomooloo to Potts Point, a steep climb that is rewarded with magnificent views over Sydney.

Potts Point is one of Sydney’s oldest and wealthiest neighborhoods and still one of the most affluent areas of the city today. For tourists, a visit to Potts Point should be at the top of the itinerary.

Garden Island is home to the East Royal Australian Navy base and dry docks as well as the Naval Heritage Museum. Take time for a coffee and enjoy the breathtaking view of the harbor.

The nearby Woolloomooloo Wharf is also worth a visit. It was built in 1915 under the name Finger Wharf and served as a shed for wool processing for over 60 years. It was renovated in the 1990s and is now an upmarket neighborhood with expensive apartments, designer stores and trendy bars, cafés and restaurants. A fabulous place for a relaxed day of exploring.

Other places of interest in the Potts Point area include: Artspace, which displays a large collection of Australian and international contemporary art. The El Alamein War Memorial Fountain and the Potts Point Galleries.

For those who want to spend a little more time in Darlinghurst or Potts Point, there is an excellent selection of backpacker hostels with dormitories as well as apartments and hotel accommodation to suit all budgets.

BEST ACCOMMODATION IN DARLINGHURST 👇:

• ($$$) Medusa Hotel Sydney 👈
• ($$) Best Western Plus Hotel Stellar 👈
• ($) Darlo Bar Darlinghurst 👈

9. Bondi Beach, iconic beach where you can spend the night in Sydney

No visit to Sydney would be complete without spending at least a few hours on the world-famous Bondi Beach. From the lifeguards to the surfers and sunbathers to the (very rare) shark attacks – every aspect of Bondi’s laid-back beach and surf culture has been captured for posterity in films and TV series.

Buses and trains run every few minutes from the city center. However, you can also take a cab or even walk – if you fancy a two-hour walk around the headland.

If you don’t want to ride the waves or sunbathe, there are plenty of alternatives. Picnics on the beach are allowed and very popular, or you can have a light lunch overlooking the beach on Campbell Parade.

Enjoy a little shopping spree in the numerous stores on the beach or simply have a beer on a terrace and watch the people go by.

For the active ones who want to get their feet wet and master a surfboard, there are a number of highly qualified surf schools on the beach that can provide you with all the equipment and get you on your board in no time.

For those who prefer to spend their stay in Sydney in the Bondi area, there is a variety of accommodation ranging from beachfront condos, hostels, guesthouses and apartments to 2 to 5-star hotels and motels.

However, if you prefer Bondi, be sure to book early as it is one of the most popular areas in Sydney, both with young domestic tourists and international visitors.

BEST ACCOMMODATION IN BONDI BEACH 👇:

• ($$$) QT Bondi 👈
• ($$) Adina Apartment Hotel Bondi Beach Sydney 👈
• ($) Wake Up! Bondi Beach 👈

10. Manly, accommodation in Sydney in a beautiful beach area

While Bondi Beach is the talk of the town, there is an equally beautiful beach a little further up the coast that is frequented by visitors and connoisseurs of Sydney. The beautiful beachside suburb of Manly is a vacation area in Sydney’s north, 17 km north of the city center.

Manly can be reached by car, cab, bus or train, but the best experience is the 30-minute ferry crossing from Circular Quay.

The ferry crosses the harbor and offers a magnificent view of the Sydney Opera House and Harbour Bridge before docking at Manly Quay. There is also a fast ferry, which halves the journey time.

When you get off the ferry at Manly Wharf, you should take a look at Manly Corso, a lively pedestrian area with over 200 shops, cafés, bars and restaurants.

Local Sydneysiders like to congregate at the terrace cafés and bars to enjoy the many young and not-so-young street performers. If the heat is getting to you and you fancy a cold beer, head to 4-Pines by the wharf, a pub, microbrewery and restaurant that was established ten years ago and is very popular with locals and returning visitors.

Soaking up the sun day after day on a beautiful golden sandy beach is not everyone’s idea of the perfect vacation. For those who want to combine relaxation with a little sporting activity, Manly offers a wealth of opportunities to have fun.

As you would expect, there are plenty of surf schools where you can hire all the equipment and learn how to ride the waves. There are also plenty of opportunities to kayak, boat, sail, snorkel, dive and even try surf lifesaving.

If you fancy a little exploration, head to the northern end of the beach and glide through the “wormhole” to Freshwater Beach, where surfing was supposedly first introduced to Australia in 1914.

If you want to go a little further afield, the 10km clifftop walk from Spit Bridge to Manly Beach takes you through a series of picturesque coves on the way back to Manly.

Other attractions include the 100-year-old Grotto Point Lighthouse, the Fairy Bower Sea Pool, Manly Dam and a visit to the Manly markets.

Once visitors have discovered Manly, they keep coming back, so it’s a good idea to book early. Choose from backpacker hostels and budget hotels, self-catering apartments, B&Bs and guesthouses, vacation rentals, private villas and luxury hotels.

BEST ACCOMMODATION IN MANLY 👇:

• ($$$) Manly Pacific Sydney MGallery Collection 👈
• ($$) Quest Manly 👈
• ($) Drummond House, Royal Far West 👈

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