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The best budget hotels in Sydney, from capsule pods to ‘try before you buy’ rooms

The hotel – cheaper than an Airbnb and more stylish than a backpackers hostel is formed of 70 capsules
The hotel – cheaper than an Airbnb and more stylish than a backpackers hostel is formed of 70 capsules

It’s true that beauty comes at a price – the cost of living in Sydney exceeds that of New York and London. Housing prices are so high it makes you want to drink your cares away, but a cocktail at an inner-city bar will set you back 20 Australian Dollars. However, there is a way to live it up in the harbour city without sending yourself broke. It costs exactly nothing to enjoy Sydney’s best assets: the beaches are free, and there is no better way to soak up the city’s culture than by swimming and exploring the coast. Sydney’s budget hotels are often full of character and warmth and many are perfectly placed bases from which to discover the city.

Hotel Harry, Sydney, Australia
Hotel Harry, Sydney, Australia

Hotel Harry

Sydney, New South Wales, Australia

7Telegraph expert rating

Religious iconography, tequila bottles, church candles and Mexican beer posters mingle with century-old drinking house features, turning this long-suffering Aussie pub into an exciting new boutique hotel with a Latin-themed Bar Publico. The 20 standard rooms are on the small side but are clean, comfortable and furnished with darkwood retro furniture. The fit-out is modern and the aesthetic industrial-cool, without compromising the charm. At Harpoon Harry, the kitchen is home to a Barbacoa smoker that brings forth tender, slow-cooked meats imbued with the flavours of the American South. Read expert review From £70 per night Check availability Rates provided by Booking.com

An insider guide to Sydney

The Kirketon Hotel, Sydney, Oceania
The Kirketon Hotel, Sydney, Oceania

The Kirketon Hotel

Sydney, New South Wales, Australia

7Telegraph expert rating

Moody décor and excellent in-house dining make this boutique hotel of 40 rooms a stylish option in the centrally-located Sydney suburb of Darlinghurst. Placed in the epicentre of Sydney’s nightlife district, it is also walking distance to Sydney’s best sights. Black velvet armchairs, red carpet and charcoal grey walls make this hotel feel like a hotbed of glamour and intrigue. Hidden behind the black velvet curtains in the lobby is arguably Sydney’s best bar, the award winning Eau de Vie. It’s not a spot in which to linger during the day, but one you’re happy to come back to at night. Read expert review From £60 per night Check availability Rates provided by Booking.com

The best boutique hotels in Sydney

Vibe Hotel Rushcutters Bay, Sydney, Australia
Vibe Hotel Rushcutters Bay, Sydney, Australia

Vibe Hotel Rushcutters Bay

Sydney, New South Wales, Australia

7Telegraph expert rating

You'll see the beauty of Sydney Harbour through the leaves of the fig trees as you sip your morning coffee at this perfectly placed chain hotel –situated halfway between the beaches and the city, overlooking one of Sydney's best-loved parks. The bar and restaurant serve locally sourced fare, and atop it all is a rooftop pool with panoramic views. The lobby is an elegant and welcoming entry point with a nice amount of space. Beyond, in the bar and restaurant, is where the design really shines, with a large central marble bar, drop pendant lighting, parquetry style flooring and lots of plants. Read expert review From £79 per night Check availability Rates provided by Booking.com

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The Collectionist, Sydney, New South Wales, Australia
The Collectionist, Sydney, New South Wales, Australia

The Collectionist

Sydney, New South Wales, Australia

7Telegraph expert rating

Guests are invited to ‘try before they buy’ by browsing individually designed rooms until they find the right fit – a novel approach which is about as far from the cookie-cutter mold of chain hotels as you can get. The tiny terrazzo-tiled lobby is an alcove stocked with kombucha, locally brewed beers and neon tube-lighting spelling the words 'I hope this looks good online'. No other facilities, but staff members are helpful in escorting guests as they wander from room to room and will text a personalised code to your phone to grant you access once you’ve made your selection. Each room has a kitchenette stocked with artisan teas, and some have outdoor terraces. Read expert review From £52 per night Check availability Rates provided by Booking.com

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The Capsule Hotel, Sydney, Australia
The Capsule Hotel, Sydney, Australia

The Capsule Hotel

Sydney, New South Wales, Australia

6Telegraph expert rating

Step into the future and squeeze into one of the 70 capsules that have transformed a crumbling pub into a buzzing depot for people keen to experience a new way to travel. The hotel – cheaper than an Airbnb and more stylish than a backpackers hostel – is located within an iconic Art Deco building in the heart of the CBD, but while the capsules themselves are futuristic, the designers have referenced the building's original features, making the pods look like 1930s bank vaults. A communal space is full of (fake) plants, and 20-somethings on their laptops and there are two bars: Bar Century on level one, forever famous for being the spot in town for cheap drinks, and a sports bar on level two. Read expert review From £22 per night Check availability Rates provided by Booking.com

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57 Hotel, Sydney, Australia
57 Hotel, Sydney, Australia

57 Hotel

Sydney, New South Wales, Australia

7Telegraph expert rating

Drawing inspiration from the halcyon days of Studio 54, this inexpensive hotel mixes budget with a touch of glamour and considerate, personal touches. It is situated in an uber-convenient part of town, close to shopping, the best secret spots to eat and drink and transport to all major tourist attractions. Rooms are made for a comfortable night’s sleep and a get-up-and-go attitude, not a lazy morning of lingering. They’re equipped with iPads that are full of helpful information regarding public transport, local bars and restaurants. The rooms include a complimentary pass to Bayswater Fitness which operates 24/7. Read expert review From £71 per night Check availability Rates provided by Booking.com

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ibis sydney darling harbour, australia
ibis sydney darling harbour, australia

ibis Sydney Darling Harbour

Sydney, New South Wales, Australia

6Telegraph expert rating

This budget-friendly chain hotel in Darling Harbour offers fine views, an in-house bar and bistro, and is footsteps from Sydney’s thriving tourist precinct, convention centre and main attractions – and if you’re not expecting anything fancy in the way of styling you won’t be disappointed. Hanging chairs on the outdoor terrace are a nice addition and the views out to Darling Harbour make up for the lack of character indoors. The floor-to-ceiling windows at IBar and Ibistro bring in beautiful, natural light and while the décor is dated, it’s cheap and cheerful. Read expert review From £54 per night Check availability Rates provided by Booking.com

The Ultimo, Sydney
The Ultimo, Sydney

The Ultimo

Sydney, New South Wales, Australia

7Telegraph expert rating

An astrology hotel in Sydney’s busy Chinatown (and not a crystal ball in sight). Centrally located and moderately priced, it’s an ideal base from which to explore the city. If you didn’t know that the hotel carried an astrology theme nothing in the styling would give it away, apart from Illustrations on the wall behind reception which depict the 12 sun signs. Guests who choose a Star Chart Package provide their name plus their date, time and place of birth and are given a personalised star chart, moon calendar, pair of slippers, cookie and welcome note on arrival. An Off the Chart package contains the above plus an hour-long, one-on-one consultation with resident astrologer Damien Rocks. Read expert review From £67 per night Check availability Rates provided by Booking.com

Prices cited on Boooking.com are subject to change in high season and during popular holidays and events.

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