Australia’s 10 best city hotels have been revealed and five are in Sydney – these are the top places to stay

Ever wondered where are the best hotels in Sydney? Here’s your answer, for 2025 anyway, as five of Australia’s top 10 city hotels are here in the Harbour City — and so is the best hotel pool and spa.

From glittering harbourside icons to hidden gems in the heart of the CBD, Sydney knows a thing or two about world-class hotels. Whether you’re the kind of traveller who books a hotel for the pillow menu, the rooftop views, or the spa that melts away stress on arrival, there’s something here for every taste — and Travel + Leisure agrees. The global travel title has just revealed the winners of its 2025 Luxury Awards, and Sydney has absolutely cleaned up.

Leading the charge is Capella Sydney, which took the top honour as the Best City Hotel in Australia. But it doesn’t stop there: a whopping five Sydney stays made the top ten, proving once again that when it comes to luxe city getaways, the Harbour City is in a league of its own.

And if your first stop after check-in is always the pool (swimmers packed at the top of the suitcase, of course), you’ll be happy to know they also named Australia’s best hotel pools — and yes, a Sydney hotel claimed that title too.

Here’s where to check in (and maybe never check out) on your next visit to Sydney.

1. Capella, Sydney

Taking the top spot on Travel and Leisure‘s list, Capella Sydney is a comparative newbie on the block, having only opened in March 2023. It marked the hotelier group’s first Australian property, taking over the Department of Education building on Loftus Street. Inside, 192 Guestrooms and Suites are anchored by three ground-level food and beverage offerings: McRae Bar, Aperture and the signature restaurant Brasserie 1930. Bridgerton star Nicola Coughlan recently stayed at Capella — if it’s good enough for Penelope, it’s good enough for us.

• Deluxe Room: Sleek and luxurious rooms that average 45m² with a super king bed or twin configuration. Accessible available.
• Premier Room: Averaging 50m², the bathroom has dual vanity, rain shower and deep-soaking bathtub and super king bed or twin configuration with rollaway bed available by request. Accessible available.
• Tower Room: Overlooking the Clock Tower of the Department of Lands, rooms average 45m² with super king bed.
• Skyline Room: The largest rooms averaging 65m² offer skyline views, an indulgent bathroom with double vanity, rain shower and deep-soaking bathtub, and super king bed or twin configuration with rollaway bed available by request.
• Suites: 23 deluxe and skyline suites offer sweeping city views, super king bed with custom Italian Frette Linen and thoughtful in-room details such as Bamford toiletries and intuitive state-of-the-art technology.

The Living Room is a signature space at all Capella properties, where guests can take part in daily Capella Rituals and immerse themselves in local culture. Level six, meanwhile, is where wellness fanatics can discover the world-class health and spa facilities.

capellahotels.com

2. Park Hyatt Sydney

Nestled between the Sydney Opera House and Harbour Bridge, you’d struggle to find a better located place to stay — especially for a first-time visit to Sydney. The views alone are worth the stay, but every detail inside reflects quiet luxury too.

Rooms and suites are sleek and modern, with floor-to-ceiling glass doors opening onto private balconies. Neutral tones, custom furnishings and curated artworks create a warm, residential feel, while the 24-hour butler service takes things to another level. Guests can relax in the rooftop pool and wellness centre, complete with day spa and fitness studio, and dine waterside at The Dining Room or take the short walk along to Circular Quay to find even more options.

Address: 7 Hickson Rd, The Rocks NSW 2000
Prices: From $1100 per night.

hyatt.com

3. Sydney Harbour Marriott Hotel

Another stay just moments from Circular Quay and the historic Rocks precinct, the Sydney Harbour Marriott is a crowd-pleaser with its prime location, exceptional service and recently refurbished rooms.

There are 595 rooms and suites in total, many with sweeping views of Sydney Harbour, the Opera House or city skyline. Interiors are crisp and contemporary, with plush bedding, spacious bathrooms and generous workspaces. The hotel is also home to Silvester’s Restaurant and the heritage-style Customs House Bar, plus a 24-hour fitness centre and indoor heated pool.

Address: 30 Pitt St, Sydney NSW 2000
Prices: From $323 per night.

marriott.com

4. Shangri-La Sydney

Towering above The Rocks, the Shangri-La delivers big on luxury and even bigger on views. From the sky-high rooms to the iconic Blu Bar on 36, everything here feels indulgent and it’s a favourite for romantic getaways and special occasions But the real hidden treasure is CHI, The Spa, which also snagged a win in Travel + Leisure’s awards as Australia’s best hotel spa. If you’re after a bit of pampering, this is the place.

Inside, 564 guestrooms and suites are elegantly appointed with marble bathrooms, soaking tubs and floor-to-ceiling windows. Guests can dine at Altitude Restaurant or sip cocktails at Blu Bar on 36, both offering panoramic views of the Opera House and Harbour Bridge.

Address: 176 Cumberland St, The Rocks NSW 2000.
Prices: From $230 per night.

shangri-la.com

5. Pier One Sydney Harbour

Built on and over the water, Pier One Sydney Harbour blends heritage architecture with bold, contemporary design and some seriously enviable views. Located beneath the Harbour Bridge in Walsh Bay, it’s a short walk to Barangaroo and The Rocks. The rooms feature exposed timber beams, floor-to-ceiling windows and a mix of vintage and designer furnishings. Some suites come with private balconies, deep soaking tubs and outdoor daybeds right above the water.

There’s an award-winning restaurant, Gantry, and a buzzy cocktail scene on the pier. Bonus: it’s one of Sydney’s most pet-friendly luxury stays.

Address: 11 Hickson Rd, Walsh Bay NSW 2000
Prices: From $314 per night.

pieronesydneyharbour.com.au

Best hotel pool: The Day Spa by Chuan at The Langham

While The Langham didn’t make the city hotel list, its pool was named the best in the country and it’s easy to see why. Beneath a ceiling of twinkling stars, the 20-metre indoor pool channels the glamour of a Roman bathhouse. You’ll find it inside The Day Spa by Chuan, alongside heated lounges, saunas and a full menu of luxury treatments.

Address: 89–113 Kent St, Millers Point NSW 2000
Opening times: Daily 7am–9pm. Public holidays 7am–9pm.

langhamhotels.com