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Sydney · Hotel shortlist

Cheap hotels in the old town, Sydney

Fiona Gallagher

Fiona Gallagher Australia and New Zealand

Updated 1 September 2026 · 5 Sydney hotels assessed

These are my five favourites in Sydney, out of the 5 that qualified. I read what other travellers scored them before I picked, so the order follows the guests, 4.3 down to 4.

Every one comes in under $130 a night, and the one I would book first is $84.

Dunkirk Hotel

Highest rated of the five

Dunkirk Hotel

★★★★★4.3 from 804 reviews

Dunkirk Hotel comes out on top of this list, and not narrowly: 4.3 from 804 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 found under city centre and around $84 a night on the dates we checked.

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

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All five, ranked

  1. Dunkirk Hotel1

    Dunkirk Hotel

    ★★★★★4.3 from 804 reviews

    • Restaurant
    • Bar
    • Air conditioning

    Check rates Read more

  2. Azzurro Pod Hotel - City Darling Harbour2

    Azzurro Pod Hotel - City Darling Harbour

    ★★★★★4.2 from 570 reviews

    • Parking
    • Air conditioning

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  3. The Occidental Hotel3

    The Occidental Hotel

    ★★★★★4 from 1,467 reviews

    • Restaurant
    • Bar
    • Air conditioning

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  4. Nomads Sydney4

    Nomads Sydney

    ★★★★★4 from 1,499 reviews

    • Restaurant
    • Bar
    • Kitchen
    • Air conditioning
    • Accessible

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  5. Wynyard Hotel5

    Wynyard Hotel

    ★★★★★4 from 816 reviews

    • Air conditioning

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How this list was put together

5 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.