Sydney is a top destination for backpackers, known for its beaches, café culture, and easy access to public transport.
It’s a big, busy city with plenty to see and do, and thankfully, there’s no shortage of hostels to choose from. From simple and affordable places to more modern stays with excellent facilities, Sydney’s CBD offers hostels to suit all types of travellers.
In this guide, we’ve tested and reviewed seven of the best hostels in the city. Each one offers good value, a convenient location, and a setup that works well for backpackers.
Top 7 Sydney Hostels:
| Hostel | Location | ||
|---|---|---|---|
| 1 | YHA Sydney Harbour | The Rocks | Book |
| 2 | Wake Up! Sydney Central | Haymarket | Book |
| 3 | YHA Sydney Central | Haymarket | Book |
| 4 | Big Backpackers Hostel | Surry Hills | Book |
| 5 | The Pod Sydney | Sydney CBD | Book |
| 6 | Nomads Sydney | Sydney CBD | Book |
| 7 | Tequila Sunrise Hostel Sydney | Haymarket | Book |
1. YHA Sydney Harbour
Opened in 2019, the modern YHA Sydney Harbour in The Rocks exceeds most expectations of what a hostel can be. Built above preserved archaeological remains of colonial Sydney, this award-winning hostel offers a unique blend of heritage and high-quality facilities.
It features shared, private and family rooms, all with free linen, WiFi and access to a fully equipped communal kitchen and rooftop terrace. Premium rooms are also available, with widescreen TVs and partial views of the city and the Harbour.
Facilities include air-conditioning, a barbecue area, laundry, a food store, fast WiFi, a TV room, a tour desk and an onsite ATM. We like this hostel for its unbeatable location, clean and modern setup, the rooftop views, and relaxed social atmosphere.
| YHA Sydney Harbour | |
|---|---|
| Location: | 110 Cumberland Street, The Rocks (map) |
| Dorms: | 4/6/8 |
| Private rooms: | Yes |
2. Wake Up! Sydney Central
Conveniently located opposite Central Station in an eight-storey heritage building, Wake Up! Sydney Central is a purpose-built hostel with more than 500 beds.
This award-winning hostel is so much more than just a place to sleep. It also features a lively bar, restaurant, café, and even a travel agency, with trains, buses, and light rail right outside the door.
The facilities include free WiFi, 24-hour check-in, a licensed bar and nightclub, a café, and a mix of private and shared rooms. We like this hostel for its central location, social vibe, and everything-you-need setup, all under one roof.
| Wake Up! Sydney Central | |
|---|---|
| Location: | 509 Pitt Street, Haymarket (map) |
| Dorms: | 4/6/8/10 |
| Private rooms: | Yes |
3. YHA Sydney Central
Located right next to Central Station, YHA Sydney Central is a popular and well-established hostel housed in a distinctive heritage-listed building.
This busy, world-class hostel offers excellent facilities and a hard-to-beat location, making it a favourite among backpackers. It’s a good idea to book ahead, as it tends to fill up quickly.
Facilities include free WiFi, linen, a heated pool, sauna, communal kitchen, café and restaurant, as well as a games and TV room. One of the highlights is the rooftop with sweeping views over the city.
We rate this hostel for its convenient location, reliable comfort, and standout rooftop area, the perfect spot to unwind with friends after a day of exploring.
| YHA Sydney Central | |
|---|---|
| Location: | 11 Rawson Place, Haymarket (map) |
| Dorms: | 4/5/6/8 |
| Private rooms: | Yes |
4. Big Backpackers Hostel
Big Backpackers Hostel is a laid-back hostel just a short five-minute walk from Central Station.
It offers excellent value for money, with a wide range of rooms to suit different types of travellers. Choose between 4, 6 and 8-bed dormitories, as well as single, double, twin and family rooms for those looking for more privacy.
Along with its friendly and relaxed atmosphere, the rooms and communal areas are generally clean, safe, and well-maintained.
What we like most about Big Backpackers Hostel is its location. Central Station is only a stone’s throw away, Surry Hills’ nightlife is next door, and all of Sydney’s tourist attractions are within walking distance.
| Big Backpackers Hostel | |
|---|---|
| Location: | 212 Elizabeth Street, Surry Hills (map) |
| Dorms: | 3/4/6 |
| Private rooms: | Yes |
5. The Pod Sydney
Located near World Square shopping mall in Sydney’s CBD, The Pod offers a different kind of hostel experience, one that’s affordable, comfortable, and surprisingly private.
Named after its enclosed pod-style beds, each sleeping space comes with its own light and power sockets, giving travellers a sense of privacy while still enjoying the social vibe of a shared room. The hostel also features a well-equipped communal kitchen and dining area, a cosy lobby lounge and a TV lounge for downtime.
The Pod is a functional, well-designed hostel without the typical party areas you might find elsewhere, but with the city right on your doorstep, you won’t miss a thing.
| The Pod Sydney | |
|---|---|
| Location: | F6/396 Pitt Street, Sydney (map) |
| Dorms: | 4/6/8 |
| Private rooms: | Yes |
6. Nomads Sydney
Nomads Sydney is part of a well-known international chain of hostels, so if you’ve stayed at a Nomads before, you’ll have a good idea of what to expect.
Located on Kent Street in the heart of the CBD, it’s just minutes from Town Hall Station, Darling Harbour, Barangaroo, and Chinatown.
The hostel offers 24-hour reception, a communal kitchen, free luggage storage, a TV room and its own bar. What really stands out, though, is the social atmosphere. With daily events and activities, it’s a great choice if you’re keen to meet new people.
And if you’re up for a drink and a night out, you won’t need to go far. The Scary Canary, a lively bar and nightclub run by the hostel, is right downstairs.
| Nomads Sydney | |
|---|---|
| Location: | 477 Kent St, Sydney (map) |
| Dorms: | 4/6/8/10 |
| Private rooms: | Yes |
7. Tequila Sunrise Hostel Sydney
Like The Pod Sydney, Tequila Sunrise Hostel also offers capsule-style accommodation, with the option of a single or double pod in a shared dorm.
Facilities are excellent and include fast WiFi, a laundry service, shampoo and body wash, free breakfast and dinner, a fully equipped kitchen, and a lounge with a rooftop terrace.
One drawback is that the entrance faces busy Goulburn Street, which can be noisy, especially in summer when the windows are open.
What we like most about this hostel is that, despite the traffic noise, the location is hard to beat. There’s a light rail station just across the road, and easy access to Chinatown, Darling Square, Darling Harbour and Central Station.
| Tequila Sunrise Hostel Sydney | |
|---|---|
| Location: | 611 George Street, Haymarket (map) |
| Dorms: | 8-10 |
| Private rooms: | No |
Conclusion
With so many hostels in Sydney, picking the right one can be tricky. The seven listed above all have solid reputations, good facilities and a mix of price points to suit different budgets.
If we had to choose a favourite hostel in the city area, it would be YHA Sydney Harbour. It’s a bit more expensive, but the location and quality make it well worth it; close to trains, ferries, and major sights.
We also rate The Pod for offering something a little different. But honestly, whichever one you pick, you’ll be in good hands.
Here’s a quick recap:
- Best overall – YHA Sydney Harbour:
Great location, clean, modern, and offers rooftop views. - Most social – Nomads Sydney:
Daily events and its own nightclub make it ideal for meeting people. - Best location for transport – Wake Up! Sydney Central:
Right across from Central Station. - Best for privacy in dorms – The Pod Sydney and Tequila Sunrise Hostel:
Pod-style beds offer extra comfort. - Best budget-friendly all-rounder – Big Backpackers Hostel:
Clean, cosy, and walking distance to everything. - Most facilities under one roof – YHA Sydney Central:
Heated pool, sauna, café, rooftop, and more.
Read our guide to the best budget hotels in Sydney for more accommodation options.
Check out our guides for activities in Sydney:
