Where To Stay in Sydney For a Trip: A Guide By Locals!
FIGURING OUT WHERE TO STAY IN SYDNEY IS HALF THE BATTLE WHEN PLANNING YOUR TRIP. IF YOU’VE BEEN ENDLESSLY GOOGLING THE BEST AREAS, HERE IS A LOCAL’S GUIDE!
Sydney, the city of beaches, good food, and brilliant design, has no shortage of accommodation options—which is exactly the problem: what do you even choose?
This guide breaks down the main neighbourhoods, what each one’s good for, and my top three places to stay in each, whether you’re splurging or sticking to a tighter budget.
I’ve also listed things to do in every area, so you actually know what you’re signing up for before booking. Sydney can be expensive. Like, accidentally-bought-a-$8 coffee expensive. But when I first moved here from Melbourne after my Masters, I stayed in two super budget-friendly spots. You’ll find both in this guide.
Backpacker, solo traveller, family planner, or couple on a getaway, there’s a corner of Sydney with your name on it. Let’s find it.
Where to Stay in Sydney: Our Recommendation
Credit: Destination NSW
We recommend staying in Sydney’s Central Business District (CBD) for anyone who is unfamiliar with the city. The Opera House and Harbour Bridge sit at the eastern edge, to the east of the CBD is Sydney’s grittier, more nightlife-driven side: Potts Point, Woolloomooloo, and Kings Cross. These areas are packed with bars, late-night eateries, and energy that doesn’t go to sleep early.
Neighbourhoods like Ultimo, Pyrmont (in the Darling Harbour area), and Woolloomooloo sit right around the city centre and are perfect for travelers who want to be close to the action. It’s busy, as you’d expect, but it’s super walkable and well-connected.
To the south, there’s Surry Hills, which is one of my favourite local spots for cosy cafes (don’t miss Surry O Silly!) and a creative, professional vibe.
If you haven’t mapped out your Sydney itinerary yet, just start walking. You’ll stumble upon something to do in every direction.
MY TOP RECOMMENDATIONS
➡️YHA Sydney Central – Affordable, well-located, and has one of the best city views you’ll get on a tight budget. This is the one I stayed at, and I was surprised how great my experience was!
➡️W Sydney – A stylish, luxury stay with striking harbour views, a rooftop infinity pool, set right on Darling Harbour.
Main Areas to Stay in Sydney
If you want a broader comparison and want to make the best decision on where to stay in Sydney, this section breaks down the main neighbourhoods and the key differences between them.
🗺️ Sydney Areas On A Map!
Here’s a handy map of the areas we talk about below. You can drag the map around or click the menu in the top-left corner to see the full list. If you’d like to view the map alongside the article, click on this link. It will open in a new tab so you can easily read and explore without losing your place.
1. The Rocks and Circular Quay
The Rocks and Circular Quay are two distinct neighbourhoods sitting side by side at the northern end of the CBD. It’s definitely on the pricier side to stay here, but if you’re after a luxury stay with stunning harbour views, this is it.
The Rocks is one of the oldest and most charming parts of Sydney. Circular Quay is Sydney’s main transportation hub. It’s where most people land after arriving from the airport, thanks to the Circular Quay train station and ferry terminals. It’s also home to big-ticket views of the Opera House and Harbour Bridge, which is part of why hotels here don’t come cheap.
Why Stay Here?
Great harbour views, quick access to ferries and trains, and you’ll be right in the middle of historic Sydney. If you don’t mind splurging a bit, this area nails the convenience and the vibe; moreover, you’ve got restaurants, bars, and the city’s best skyline right at your doorstep.
Where to Stay in The Rocks and Circular Quay
- Budget: YHA Sydney Harbour
- Mid-Range: Rydges World Square
- Luxury: Pier One Sydney Harbour, Autograph Collection
The Best Things to Do Here
- Climb the iconic Sydney Harbour Bridge or opt for the more affordable Pylon Lookout for panoramic views.
- Visit the world-famous Sydney Opera House and explore its architectural beauty up close.
- Join a crime tour through The Rocks and uncover the area’s haunted colonial history.
- Book a fancy 3-hour Sydney Harbour Cabaret Cruise with a 3-course dinner.
- Snap postcard-perfect photos from Circular Quay Station with the Harbour Bridge and Opera House in the frame.
🌤️Read Next: 17 most scenic day trips from Sydney
2. Darling Harbour and Pyrmont
Darling Harbour is Sydney’s entertainment playground, home to attractions like the SEA LIFE Aquarium, Madame Tussauds, and the Australian National Maritime Museum. It’s a great area for families and first-timers who want to be near the action without diving straight into the chaos of the CBD.
Pyrmont, which wraps around the western side of Darling Harbour, is more residential but still super central. It’s got a relaxed local feel, a bunch of great cafes, and some surprisingly quiet pockets considering how close it is to everything. It’s also home to The Star Casino if that’s your scene.
Accommodation here ranges from sleek waterfront hotels to serviced apartments, so you’ve got options whether you’re splurging or saving a bit.
Why Stay Here?
It’s ideal if you want to be close to major attractions but not smack in the middle of the CBD rush. Walkable to the city, packed with family-friendly activities, and Pyrmont adds that slightly more laid-back, local edge. Great for couples, families, or anyone who likes their mornings by the water and nights near good food.
Best Accommodation:
- Budget: Kith Hotel Darling Harbour
- Mid-Range: Vibe Hotel Sydney Darling Harbour
- Luxury: W Sydney
The Best Things to Do Here
- Strike a pose at Madame Tussauds
- Explore SEA LIFE Sydney Aquarium
- Meet Aussie animals at WILD LIFE Sydney Zoo
- Let the kids run wild at Darling Quarter Playground
TIP: If you’re planning to visit Madame Tussauds, SEA LIFE Aquarium, or Wildlife Sydney, you can get 10% off via Klook using our code “HATEXPLORESKLOOK”.
Book the Sydney Attractions Pass here
3. Paddington and Surry Hills
If you’re looking for a place that feels more lived-in than touristy, Paddington and Surry Hills are two of Sydney’s best neighbourhoods to base yourself. They’re just outside the city centre but still well-connected by buses and trains.
Surry Hills is known for its excellent cafes, bakeries, and casual dining spots. The streets are lined with terrace houses, there are markets and exhibitions nearby, and you’ll never struggle to find a good coffee. It’s a good area if you like walking, eating out, and being close to Central Station without the noise of the CBD.
Paddington is quieter, with a more residential feel. It’s where you’ll find weekend markets, art galleries, and boutiques in beautiful old buildings. The streets are leafy and calm, and it’s an easy bus ride to both the city and the beach. A great pick if you like things a little slower but still want to be close to everything.
Why Stay Here?
You’re close to the city, but not stuck in the middle of it. These neighbourhoods give you space, good food, and that feeling of slipping into a local rhythm, recommended for travellers who like to explore without rushing through it.
Best Accommodation:
- Budget: Hughenden Boutique Hotel
- Mid-Range: Oxford House
- Luxury: The Grand National Hotel by Saint Peter
The Best Things to Do in Paddington and Surry Hills:
- Wander through the Paddington Markets
- Pop into art galleries along Oxford Street
- Café-hop through the backstreets of Surry Hills
- Wander past terrace houses and leafy laneways
- Sip wine at a cosy bar after dark
🚫💸Read next: 27 Free Things to Do in Sydney
4. Manly
Credit: Destination NSW
Manly is a solid choice if you want to stay near the beach but don’t necessarily want to base yourself in Bondi. It’s located on Sydney’s Northern Beaches and has a much more local, village-like feel. One of the key differences is how you get there. Manly is connected to the city by ferry from Circular Quay, which takes about 20–30 minutes. It’s scenic, but not as direct as the buses heading to Bondi, so factor that in if you’re planning to do a lot of city sightseeing.
The suburb is split between two coastlines: the ocean side (surf beach) and the harbour side (calm water). This makes it one of the only places in Sydney where you can swim at a calm beach one minute, then walk a few blocks and go surfing the next. It’s also where the Shelly Beach walk begins, and you’ll find coastal lookouts, snorkelling spots, and bush tracks within walking distance of your accommodation.
Credit: Destination NSW
Compared to Bondi, Manly tends to attract longer-stay travellers, families, or couples who want to settle in a bit and don’t mind being further from the CBD. The pace is slower, but there’s still a good amount of dining, shopping, and pubs, just with fewer tourists packed in. Prices here are slightly more affordable than beachfront Bondi hotels, and there are more mid-range and family-friendly stays.
Why Stay Here?
Manly is best if you plan to spend most of your time outdoors, on coastal walks, at the beach, or just enjoying the ferry commute. You’re further from the city than Bondi, but you get access to both surf and harbour beaches in one suburb. Tourists who stay here usually want a base to unwind, not rush around.
Best Accommodation:
- Budget: Sandy Bottoms Guesthouse
- Mid-Range: Nautical Living in Manly
- Luxury: Manly Beachfront Stay
Best Things to Do in Manly
- Hop on the Manly Ferry for the scenic ride
- Swim, surf, or spread out on the sand at Manly Beach
- Wander the coastal path to Shelly Beach
- Snack and shop your way down the Corso
- Grab a beer at 4 Pines with a view (It has vegan and vegetarian options as well.)
5. Kings Cross and Potts Point
Potts Point is one of the most interesting areas to stay in Sydney. It’s close to the city but feels like its own pocket: elegant streets, heritage buildings, and a surprising number of excellent restaurants packed into a small area. You’ll find everything from cheap eats to fine dining, all within walking distance.
Right next to it is Kings Cross, once Sydney’s red light district, now somewhere in between its past and a quieter, newer identity. This area is well-connected, and it is cheaper to stay here than to stay right in the CBD.
Why Stay Here?
Potts Point is a great middle ground, close to everything, more affordable than the harbourfront, and full of good food. Kings Cross brings the late-night options and budget stays. Together, they’re ideal for travellers who want to be near the city but still want to step outside the usual tourist zones.
Best Accommodation:
- Budget: Azzurro Pod Hotels
- Mid-Range: The Bayswater Sydney
- Luxury: Holiday Inn Potts Point
The Best Things to Do in Kings Cross and Potts Point
- Walk the heritage streets of Potts Point
- Grab coffee at a corner café on Macleay Street
- Catch a late-night show or gig around Kings Cross
- Browse indie bookstores and wine shops
- Dine at some of Sydney’s best small restaurants
6. Bondi
Bondi is Sydney’s most famous beach suburb, and for good reason. It’s easy to reach from the city (about 30–40 minutes by bus), and staying here gives you front-row access to one of Australia’s most iconic stretches of coastline. If your trip is built around beach time, ocean walks, and early morning swims, Bondi is a strong contender.
You’ve got the main beach right there, plus the Bondi to Coogee coastal walk, which starts at the southern end and is one of the best free things to do in Sydney. North Bondi is slightly quieter and more local, while South Bondi has more restaurants, surf schools, and that classic Icebergs ocean pool. The area also has a big focus on wellness—gyms, smoothie spots, pilates, and plant-based cafes are everywhere.
Accommodation is a bit more expensive here, but there are still a few hostels and mid-range stays tucked around the edges. It’s not the most convenient location for city sightseeing, but for beach lovers, it makes up for it.
Why Stay Here?
Bondi is for people who want the beach outside their door. You won’t be as close to Sydney’s main attractions, but if the coastline is your priority, this is where you want to be. It suits couples, solo travellers, and anyone planning around surfing, coastal walks, or long days by the ocean.
Best Accommodation:
- Budget: Hotel Bondi
- Mid-Range: The Blue Hotel Bondi
- Luxury: Adina Apartment Hotel
Best Things to Do in Bondi:
- Kick back on Bondi’s iconic beach
- Walk the dramatic clifftops to Coogee
- Spot bold murals and beachside street art
- Hunt for treasures at the Bondi Markets
- Catch sunset with a drink by the water
7. Newtown
If you’re after character, creativity, and culture, Newtown is your spot. This is Sydney’s inner-west at its most expressive—street art, secondhand bookshops, vegan bakeries, live music, dive bars, and no shortage of things to eat. It’s not polished, but it’s full of personality.
Newtown isn’t by the beach or the harbour, but it’s well-connected to the city by train (just two stops from Central), and you’ll find a different kind of Sydney here, one that’s more alternative, more local, and a little rough around the edges in the best way.
Why Stay Here?
Great if you’re into food, art, and music. It’s also one of the best areas for plant-based eaters and budget travellers who don’t mind being a little outside the tourist core. You won’t get harbour views, but you’ll get a lot more character.
The Best Accommodation:
- Budget: Newtown Cosy Stays
- Mid-Range: The Erko Hotel
Best Things to Do in Newtown:
- Grab a ticket to a gig at the Enmore Theatre
- Dig through vintage stores on King Street
- Eat your way around the world in a few blocks
- Snap photos of colourful murals and laneway art
- Settle into a local brewery or wine bar
🍷 Read next: 40 Best Things to Do in Sydney at Night
Which Area in Sydney is the Safest?
Suburbs like Hunters Hill, Lane Cove, and Ku-ring-gai consistently report the lowest crime rates in Sydney, according to NSW’s official crime data. In fact, Hunters Hill had the fewest reported crimes across the city last year.
These neighbourhoods are mostly residential and sit outside the typical tourist zones, so they work best for longer stays, people visiting family, or those renting a car. If you want to stay central but avoid sketchy late-night spots, stick with areas like Pyrmont, Balmain, and Surry Hills.
FAQs: Where to Stay in Sydney
Now that we’ve (hopefully) helped you figure out where to stay in Sydney, here are a few questions people ask all the time:
What is the Nicest Area of Sydney?
If we’re talking luxury living, Point Piper is Sydney’s most exclusive postcode, home to billionaires, waterfront mansions, and the highest real estate prices in Australia. But it’s not designed for visitors.
For travellers, the nicest (and most luxurious) areas to stay in are The Rocks and Circular Quay. You’ll find five-star hotels, harbourfront views, and easy access to landmarks like the Opera House and Bridge. Double Bay is another upscale pick. It is leafy, quiet, and filled with boutiques, luxury apartments, and a yacht-dotted marina.
Which is the Most Popular Suburb in Sydney?
Bondi remains the clear favourite, with around 2.5 million visitors annually in recent years, making it one of Australia’s busiest beach suburbs. That includes more than 47,000 people on some peak days.
Close behind are Circular Quay, Darling Harbour, and The Rocks, which consistently attract large crowds thanks to ferries, waterfront dining, and easy access to iconic sights.
How Safe is Sydney For Tourists?
Sydney, in my opinion, is very safe to travel to. In 2021, it was the fifth safest city in the world! It’s also widely listed as safe for solo female travellers, with reliable public transport and low violent crime.
Still, stay smart: keep your bag zipped, avoid isolated areas late at night, and don’t leave valuables unattended, especially around Central Station, Kings Cross, and The Rocks after dark.
The Wrap-Up: Where to Stay in Sydney
That’s a wrap! So, if you’ve ever wondered where to stay in Sydney, now you know better. Got questions or suggestions? Drop us a message on Instagram, we’d love to hear from you.
