Where to stay in Sydney: the best neighbourhoods and hotels

This is the Sydney of a thousand postcards. Ferries come and go from the wharves at Circular Quay, the Opera House sits on its headland at one end and the Harbour Bridge soars over The Rocks at the other. The Rocks itself is the city's oldest quarter, a warren of sandstone terraces, cobbled lanes, historic pubs and weekend markets, with the Museum of Contemporary Art on the waterfront and the Royal Botanic Garden curving around the bay.

Hotels here sell the view, and it's worth paying for. Pick from a grand hotel inside the restored 1851 Treasury Building, a Four Seasons a short walk from The Rocks, harbour-facing suites close to the Opera House and spacious apartment-style rooms looking straight at the bridge. Manly's beaches are a ferry ride away.

Sydney's central business district is more interesting than its name suggests. Between the glass towers you'll find Victorian landmarks like the old General Post Office on Martin Place, grand arcades and the Queen Victoria Building, the theatres around the Capitol, and Hyde Park, with its avenues of fig trees, stretching down towards the Australian Museum.

It's the city's most practical base, with trains, light rail and buses everywhere and both the harbour and Darling Harbour walkable. Hotels range from a five-star inside the historic GPO to a heritage-listed Sofitel with a garden courtyard, and two big names looking straight over Hyde Park, one of them with an indoor pool and a spa.

Darling Harbour is Sydney's waterfront playground: a broad promenade of bars and restaurants wrapped around the water, with SEA LIFE Sydney Aquarium, the International Convention Centre and the dining strip of Barangaroo all close by. Across Pyrmont Bay, old wool stores and wharf buildings have been turned into hotels and apartments, and The Star entertainment complex keeps the lights on late with its casino, restaurants and nightclub.

It suits families by day and night owls after dark. Stay in a sleek Sofitel opposite the convention centre, a boutique hotel in an 1888 wool store with exposed brick and lofty ceilings, or one of the two hotels inside The Star itself, where the views stretch from the Harbour Bridge to the Blue Mountains.

Just south of the CBD, Surry Hills is where Sydney goes to eat. Its rows of Victorian terraces hide neighbourhood pubs, brunch spots with queues out the door and restaurants that set the city's food agenda, while Crown Street adds vintage shops and record stores to the mix. Neighbouring Chippendale and Redfern carry on the creative streak with converted warehouses, galleries and bars.

Hotels have personality to spare: a former 1903 convent reborn as a heritage-meets-modern hideaway, a discreet Art Deco-inspired boutique hotel with just 38 suites, a reimagined old pub and brewery office in Chippendale, and a newer five-star in Redfern with a rooftop pool. Central Station is close, so you're never far from the rest of the city.

Kings Cross used to be Sydney's red-light district, and it still has an edge after dark. Step a few streets north, though, and Potts Point is one of the city's most elegant neighbourhoods: leafy avenues of Art Deco apartment blocks, Victorian terraces and heritage mansions, with laneways and staircases that suddenly open on views of the harbour. The restaurants and cocktail bars are some of the best in town.

Below the ridge, Woolloomooloo's historic finger wharf juts into the bay, home to a stylish boutique hotel with loft suites and an indoor pool. Up top, choose between a design-led Hotel Indigo in the heart of the Cross, a Holiday Inn on Potts Point's quieter fringe and a characterful Victorian hotel with a garden terrace. The CBD is a short walk or one stop on the train.

Sydney's eastern suburbs are where the city meets the Pacific. Coogee is a sheltered golden beach with ocean pools carved into the rocks and a laid-back, family-friendly feel, and it marks one end of the famous coastal path that winds along the cliffs past Bronte and Tamarama to Bondi. On the harbour side, Double Bay is a polished village of boutiques, cafés and waterfront walks.

The best beach base is a luxury hotel directly overlooking Coogee Beach, many rooms with ocean-view balconies. Double Bay has an InterContinental with a rooftop bar, and Bondi Junction, the transport hub between Bondi Beach and the city, has apartments with kitchens right by the bus and train interchange, handy for families. Expect a 20-minute-plus journey into the centre.

West of Sydney, the land rises into the World Heritage-listed Blue Mountains, a vast plateau of sandstone cliffs and forested canyons that glow hazy blue thanks to the eucalyptus oil in the air. Katoomba is the main town, a short drive from Echo Point and the famous Three Sisters rock formation, with Leura's antique and craft shops next door and walking trails dropping into the valleys.

Many visitors come for the day, but staying overnight lets you catch the cliffs at sunrise. The grandest choice is an Edwardian resort and spa near Echo Point; there's also a heritage hotel overlooking the canyons, contemporary self-contained apartments on the edge of the national park at Wentworth Falls, and an eco-certified retreat with an infinity lap pool and just five suites. Regular trains run from Central.

Landing late or flying out at dawn? Mascot, the suburb wrapped around Sydney Airport, has a cluster of hotels a few minutes' drive from the domestic and international terminals, with a train station that runs straight into the city. Choose from Sydney's only five-star airport hotel, a refined hotel five minutes' walk from Mascot station, and good-value options right by the domestic terminals. For sightseeing, though, stay central.