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Sydney · Hotel shortlist

Cheap hotels near the main square in Sydney

Fiona Gallagher

Fiona Gallagher Australia and New Zealand

Updated 1 September 2026 · 16 Sydney hotels assessed

These are my five favourites in Sydney, out of the 16 that qualified. I read what other travellers scored them before I picked, so the order follows the guests, 4.5 down to 4.

Every one comes in under $130 a night, and the one I would book first is $73.

Tequila Sunrise Hostel Sydney

Highest rated of the five

Tequila Sunrise Hostel Sydney

★★★★★4.5 from 585 reviews

Tequila Sunrise Hostel Sydney comes out on top of this list, and not narrowly: 4.5 from 585 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 $73 a night on the dates we checked.

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

Why it works for this trip

  • Spatreatment rooms on site, no booking a taxi for it
  • Air conditioningthe one that decides a summer trip

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All five, ranked

  1. Tequila Sunrise Hostel Sydney1

    Tequila Sunrise Hostel Sydney

    ★★★★★4.5 from 585 reviews

    • Spa
    • Air conditioning

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  2. The Erko Hotel2

    The Erko Hotel

    ★★★★★4.2 from 1,674 reviews

    • Restaurant
    • Bar

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  3. No9 Springfield Potts Point3

    No9 Springfield Potts Point

    ★★★★★4.2 from 677 reviews

    • Gym
    • Restaurant
    • Bar
    • Parking
    • Kitchen
    • Kid friendly

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  4. Morgans Boutique Hotel4

    Morgans Boutique Hotel

    ★★★★★4 from 133 reviews

    • Kitchen
    • Air conditioning

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  5. Hotel Diplomat Sydney5

    Hotel Diplomat Sydney

    ★★★★★4 from 507 reviews

    • Air conditioning

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How this list was put together

16 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.