Staying in the city area of Sydney means you’re close to major landmarks, tourist attractions, restaurants, shopping centres, and theatres.
But as most travellers know, hotel prices in Sydney, especially in the CBD, can be steep. That said, if you take the time to compare options, there are still some affordable, good-quality hotels worth considering.
We’ve reviewed seven budget-friendly hotels that offer good comfort, clean and well-maintained rooms, and convenient central locations.
Top 7 Budget Hotels:
| Hotel | Location | ||
|---|---|---|---|
| 1 | Ibis Sydney Barangaroo | Barangaroo | Book |
| 2 | YEHS Hotel Sydney CBD | Sydney CBD | Book |
| 3 | Song Hotel Sydney | Sydney CBD | Book |
| 4 | YHA Sydney Harbour | The Rocks | Book |
| 5 | Ibis Styles Sydney Central | Sydney CBD | Book |
| 6 | Park Regis City Centre | Sydney CBD | Book |
| 7 | Australian Heritage Hotel | The Rocks | Book |
Let’s take a closer look at these seven affordable hotels in the city area of Sydney. Depending on travel dates, prices generally vary from around $120 up to $220, which is considered reasonably affordable by Sydney standards.
Keen to try a hostel instead? Check out our guide to the best hostels in Sydney.
1. Ibis Sydney Barangaroo
Ibis Sydney Barangaroo is a reliable and comfortable budget hotel located near metro, train, and ferry services, with plenty of cafes and restaurants nearby.
Barangaroo is a relatively new precinct within Sydney City, known for its modern design, walkability, and safe, welcoming atmosphere. The hotel sits between the city centre and the waterfront dining strip, offering 90 compact rooms ranging from 10 to 18 square metres.
What we particularly like about this hotel is its location. We have a soft spot for Barangaroo, and this hotel is right in the heart of it. It’s fairly quiet, yet still just a short walk to the buzz of the city and all the action along the waterfront.
| Ibis Sydney Barangaroo | |
|---|---|
| Address: | 22 Shelley St, Sydney (map) |
| Nearby train stations: | Wynyard, Barangaroo |
2. YEHS Hotel Sydney CBD
If you’re looking to stay close to Chinatown, Darling Harbour, World Square, and Town Hall Station, YEHS Hotel Sydney CBD is a solid budget option to consider.
This is a no-frills hotel that offers clean, comfortable rooms in a central location, with easy access to public transport, nightlife, and major tourist spots.
The hotel provides basic but useful amenities such as WiFi, instant coffee, baggage storage, and a shared lounge area. Rooms are simple, spacious, and well presented.
It’s worth noting that this part of the city can be busy and noisy at times, but if being close to Chinatown is a priority, this hotel offers good value for money.
| YEHS Hotel Sydney CBD | |
|---|---|
| Address: | 88 Liverpool St, Sydney (map) |
| Nearby train stations: | Museum, Town Hall |
3. Song Hotel Sydney
Located just south of Hyde Park and close to Pitt Street Mall, Song Hotel Sydney offers comfortable and affordable accommodation with amenities such as WiFi, baggage storage, and complimentary breakfast.
With its four-star rating, it’s a little more upmarket than the average budget hotel, but still well within a reasonable price range. Rooms are air-conditioned and comfortable, and the hotel also features an onsite restaurant and bar.
This is a great option if you’re looking to stay in the southern part of Sydney City, near Hyde Park, Oxford Street, Surry Hills, and both Central and Museum train stations, without stretching your budget.
| Song Hotel Sydney | |
|---|---|
| Address: | 5/11 Wentworth Ave, Sydney (map) |
| Nearby train stations: | Museum, Central |
4. YHA Sydney Harbour
Opened in 2009, YHA Sydney Harbour is a modern, award-winning hostel located in The Rocks. Built above visible archaeological remnants of colonial Sydney, it offers a unique mix of heritage and high-quality facilities.
Accommodation includes 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, featuring widescreen TVs and partial views of the city and Harbour.
Facilities include air-conditioning, a barbecue area, laundry, a food store, fast WiFi, a TV room, a tour desk, and an onsite ATM.
YHA Sydney Harbour is widely regarded as one of the best hostels in Sydney, with excellent service and well-maintained amenities. The option to book a private room makes it a strong contender for budget travellers looking for hotel-style comfort at hostel rates.
| YHA Sydney Harbour | |
|---|---|
| Address: | 110 Cumberland St, The Rocks (map) |
| Nearby train stations: | Circular Quay |
5. Ibis Styles Sydney Central
The relatively new Ibis Styles Sydney Central is located just down the road from Song Hotel, and slightly closer to Central Station.
This modern, well-presented hotel offers spacious and comfortable rooms with air conditioning, a kitchenette with a microwave and fridge, a TV, safe, and ironing facilities.
It’s a large hotel with more than 400 rooms spread over 18 floors. Amenities include free WiFi, luggage storage, an onsite restaurant, and a 24-hour front desk.
This is a practical and affordable choice for solo travellers, couples, young families and business travellers who want clean, efficient accommodation with easy access to public transport and the airport.
| Ibis Styles Sydney Central | |
|---|---|
| Address: | 27 Wentworth Ave, Sydney (map) |
| Nearby train stations: | Museum, Central |
6. Park Regis City Centre
Park Regis City Centre is an affordable hotel on Park Street, conveniently located across from Gadigal Metro Station and close to Hyde Park.
Rooms are compact but well laid out, with all the standard amenities you’d expect from a reliable budget hotel. A standout feature is the rooftop swimming pool and sundeck, a great bonus during the warmer months.
While the location is central and practical, the surrounding street can feel a bit busy and less appealing compared to other areas. The rooms are positioned on higher levels, so noise is generally minimal, but the building and interiors do feel a little dated.
| Park Regis City Centre | |
|---|---|
| Address: | 100 Cumberland St, The Rocks (map) |
| Nearby train stations: | Gadigal, Museum, Town Hall |
7. Australian Heritage Hotel
Established in 1914, the Australian Heritage Hotel is a landmark building in the historic precinct of The Rocks and one of the oldest pubs in the area.
It’s not just a hotel. It’s a classic Australian pub that serves a wide range of local craft beers and hearty traditional meals. Staying here gives you a chance to soak up a bit of Sydney history while enjoying a lively pub atmosphere.
The hotel offers double, queen, and twin rooms, as well as family suites, all located on the first floor above the pub. Facilities include shared bathrooms, complimentary continental breakfast, free WiFi, luggage storage, and a guest room with a TV, video, and tea and coffee-making facilities.
We recommend this as one of the best pub accommodation options in Sydney, though keep in mind that the pub setting may not suit every traveller.
| Australian Heritage Hotel | |
|---|---|
| Address: | 100 Cumberland St, The Rocks (map) |
| Nearby train stations: | Circular Quay |
Conclusion
Sydney has become an expensive city, but staying overnight in Australia’s most popular destination can still be reasonably affordable if you know where to look.
When choosing a budget hotel, the key things to consider are cleanliness, comfort, safety, proximity to public transport and attractions, noise levels, and overall value for money.
If we had to pick a favourite, it would be Ibis Sydney Barangaroo. Ibis hotels are consistently reliable, affordable, and well managed, offering a comfortable place to stay without stretching your budget. The Barangaroo location is also ideal, with the city and waterfront nearby.
For something a little more upmarket, Song Hotel Sydney is a great option. This four-star hotel delivers quality accommodation in a friendly setting, with easy access to public transport and nearby sights.
Check out our guides for activities in Sydney:
