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Sydney · Hotel shortlist

3 star hotels in the old town, Sydney

Fiona Gallagher

Fiona Gallagher Australia and New Zealand

Updated 1 September 2026 · 14 Sydney hotels assessed

These are my five favourites in Sydney, out of the 14 that qualified. I read what other travellers scored them before I picked, so the order follows the guests, 4.5 down to 4.

The Lord Nelson Brewery Hotel is the one I would book myself.

The Lord Nelson Brewery Hotel

Highest rated of the five

The Lord Nelson Brewery Hotel

★★★★★4.5 from 4,190 reviews

The Lord Nelson Brewery Hotel comes out on top of this list, and not narrowly: 4.5 from 4,190 guest reviews is a score that holds up at that volume, which is the whole test here. A perfect ten from nine people does not beat it.

It is a 3 star property, found under historic centre and around $244 a night on the dates we checked.

14 hotels in Sydney qualified for this list and five made it. The Russell Boutique Hotel is the one I would book if the first is full.

Why it works for this trip

  • Air conditioningthe one that decides a summer trip
  • Restaurantdinner downstairs on the night you land
  • Bara drink without going back out
  • Family roomscots and larger rooms rather than a squeeze

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All five, ranked

  1. The Lord Nelson Brewery Hotel1

    The Lord Nelson Brewery Hotel

    ★★★★★4.5 from 4,190 reviews

    • Restaurant
    • Bar
    • Kid friendly
    • Air conditioning

    Check rates Read more

  2. The Russell Boutique Hotel2

    The Russell Boutique Hotel

    ★★★★★4.4 from 311 reviews

    • Restaurant
    • Bar
    • Parking
    • Kid friendly
    • Air conditioning

    Check rates Read more

  3. Mercantile Hotel3

    Mercantile Hotel

    ★★★★★4.3 from 1,976 reviews

    • Restaurant
    • Bar
    • Air conditioning

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  4. The Terminus Pyrmont4

    The Terminus Pyrmont

    ★★★★★4.3 from 1,039 reviews

    • Restaurant
    • Bar
    • Air conditioning

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  5. Metro Apartments on Darling Harbour5

    Metro Apartments on Darling Harbour

    ★★★★★4 from 382 reviews

    • Parking
    • Kitchen
    • Kid friendly
    • Air conditioning

    Check rates Read more

How this list was put together

14 Sydney hotels qualify for this list. We ranked them on guest rating, then on class, and took the top five.

Two things decide these lists. The first is my own time in the city: every hotel on this page is one I have stayed in, walked into and looked at, or gone back to check. That is where the shortlist starts, and it is why some well reviewed places are not on it.

The second is the numbers, and those are what set the order. The rating and review count come from the big travel sites, pooled through Google, so a score here reflects Expedia, Booking, Hotels.com and the rest together rather than any one of them. I also read the review breakdown by topic, which is where the figures on service, breakfast and location come from. Hotels with fewer than forty reviews are left out altogether, because a rating that thin is not a rating. No more than two come from one neighbourhood.

What I do not do is move anyone up the order. The ranking is the guest score, highest first, and nobody pays to be on the list.

Distances are straight lines from published coordinates, so the real walk is a little longer. Amenities are as recorded by Google Hotels and can change without notice. Rates are an indicative nightly figure for a midweek autumn stay, not a quote. Check the booking page before you commit.

Fiona Gallagher

Fiona Gallagher Australia and New Zealand

Half her year is already on research boats, so holidays are deliberately dry land. Long-distance hiking routes in the off season, alone, with nothing being measured.

Trip Grapevine earns a commission on bookings made through the links on this page. It costs you nothing, and it does not change the order of the list, which is set by the measurements above.