There is a bar on level 36 of the Shangri-La Hotel. Go there at sunset. Take your camera, and be prepared for something special. This 5-star icon sits at one point of a 'virtual' triangle in the historic Rocks district, with the Harbor Bridge and Opera House occupying the others points on the triangle. Most rooms have sweeping water views.
On a smaller scale (and budget) and in the shadows of the Shangri-La, is the recently upgraded Russell Hotel. It's old world elegance, harbor-side location and popular wine bar make for a charming and convenient inner city stay, with so many city attractions literally on your doorstep.
For a more contemporary, designer style, the very hip Establishment in the heart of the business district clearly distinguishes itself. There are so many in-house attractions (spa, gym, nightclub, bars, restaurants) that you could spend a long weekend here and never feel the need to leave the premises.
The younger backpacker crowd is also spoilt for choice. The Sydney Central YHA in The Rocks has a rooftop terrace with views to die for. Many more are located at the other end of town around Central Station, and just east of the city in Kings Cross.
Smaller, boutique hotels, especially in Darlinghurst (Kirketon), Potts Point (Maisonette) and Woollahra (Hughenden), provide individual discreet comfort, are close to designer shops and top restaurants, and perfectly placed between the CBD and eastern beaches.
But if staying closer to the coast is your thing, there's the quaint Bondi Beach House, full of coastal character and only minutes from the beach. But for that special treat, why not fly to Pittwater and stay at the luxurious Jonah's at Whale Beach? Yes, forget the hour-long drive; just hop on the seaplane at Rose Bay and be sipping cocktails on your cliff top balcony suite in no time.
176 Cumberland Street
The Rocks
Spectacular Views...
5 Bridge Lane Sydney 2000
Off George St., near Wynyard CityRail Station
Sleek, modern interiors, discreet service in prime location...
14 Queen Street
Woollahra, Darlinghurst
Unique boutique Victorian hotel in leafy Woollahra...
229 Darlinghurst Road
Darlinghurst
Opulent Parisian grandeur in a vibrant entertainment quarter...
69 Byna Road
Whale Beach
Luxury oceanside suites far from the madding [city] crowds...
143a George Street
The Rocks
Old world elegance in historic, harbor-side location...
6 Cowper Wharf Road
The Wharf at Woolloomooloo
Award winning hotel on the waterfront...
154 Victoria Street
(Potts Point)
Boarding house with Victorian charm...
14 Carrington St
Views of Wynyard Park...
389 Pitt Street
Handy for family and business travels...
Cnr George Street & Campbell Streets
Hotel with some charming surprises...
488 George Street
The grand dame of hotels...
8 Jack Adams Pathway
High country budget accommodation...
114 Darlinghurst Road
A hotel with a little je ne sais qois...
169-179 Thomas Street
In the heart of the entertainment district...
5-11 Wentworth Avenue
More than simply accommodation...
27 Lawson Street
Balmain
In historic, harbour-side Balmain...
Corner O'Riordan and Robey Streets
Mascot
Right near the airport...
612 King Street
Newtown
Cosmopolitan neighborhood...
59 Bayswater Road
Kings Cross
Well positioned for nightlife...