Local Escapes

The Best Boutique Hotels In Sydney In 2025

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A suite at Ace Hotel Sydney, one of the best boutique hotels in Sydney

The boutique hotel scene in Sydney/Eora is absolutely thriving. If you're looking for a stay with unique personal touches, a cool lobby bar, and thoughtfully designed interiors—you've come to the right place. 

Think reimagined breweries, heritage-listed beauties, and Palm Springs-inspired oases. All of these boutique stays are close to Sydney's best restaurants, bars, and shopping precincts, too, which means you're immediately in for a great time whether you're staycationing or visiting.

Keep scrolling for Urban List's favourite boutique hotels in Sydney. 

The Best Boutique Hotels In Sydney In 2025

412 Pitt Street, Haymarket Hotel Morris

Boutique hotels Sydney Hotel Morris
Image Credit: Hotel Morris | Supplied

Once Australia's tallest hotel, Hotel Morris has been reinvented for a new era, reopening its doors in 2023. The breathtaking heritage-listed Inter-War Palazzo style building was designed by Virgil Dante Cizzio and the new Hotel Morris is a nod to this Italian heritage. Each of the 82 rooms features accents of the hotel's signature ruby-red velvet as well as custom furniture, Calacatta and blue Roma marble, brass details, and bold amber onyx stone finishes. 

Downstairs, Bar Morris is the hotel's all-day diner and slick wine bar. Helmed by Kezia Kristel (ex-Shell House Dining Room, Icebergs Dining Room and Bar, and Bennelong), fill up on snacks like a cheesy nduja madeleine filled with guanciale, spaghetti vongole or mafaldine with pork ragu, and larger plates like a juicy flank steak with Café de Morris butter. 

At Hotel Morris, you're also in the hustle and bustle of Haymarket, close to Sydney's iconic Chinatown, as well as the Capitol Theatre, Central Station and World Square. 

80 Commonwealth Street, Surry Hills Paramount House Hotel

Boutique Hotels Sydney - Paramount House Hotel
Image Credit: Paramount House Hotel | Instagram

Once the offices of Paramount Picture Studios and the home of Hollywood’s Golden Age in Sydney, these days Surry Hills' spectacular Paramount building is home to the Paramount House Hotel. Enter via the bustling Paramount Coffee Project cafe to find one of 27 lush hotel suites. 

Designed by Melbourne-based Breathe Architecture, rooms are fitted out with accents of Japanese timber, poured concrete and silvery terrazzo, matched with muted emerald carpets, indoor plants, caramel leather couches, and French linen. We especially love rooms with sunny breakfast balconies and the huge square-shaped tub made of honey-coloured timber.

At your fingertips are the Paramount building's other impressive tenants: a basement cinema and underground bar (Golden Age Cinema), chef Mat Lindsay's wine bar (Poly), a rooftop gym and health club (Paramount Recreation Club), Sydney's most beautiful co-working space (The Office Space), and some of our very best coffee (Paramount Coffee Project). 

1 Kensington Street, Chippendale The Old Clare

Boutique Hotels Sydney - The Old Clare
Image Credit: The Old Clare | Supplied

Built into two heritage-listed buildings from the former Carlton United Brewery on Broadway, The Old Clare will charm the pants off any design-savvy travellers or staycationers. Some rooms are slick, modern lofts, others occupy the former brewer’s HQ.

In the Showroom Suite, your super king-size bed is backed by an original timber bar restored from the brewery building, while the enormous C.U.B Suite is located in the former boardroom, complete with original timber panelling, parquetry floors, and even the restored executive men's washroom.

Expect vintage designer furniture, high ceilings, beautiful bathtubs, and trendy amenities like Maison Balzac fragrances. There's also a rooftop pool and bar, and you're smack-bang in the middle of one of Sydney's best eat streets too. 

47-53 Wentworth Avenue, Sydney Ace Hotel Sydney

Boutique Hotels Sydney Ace Hotel Sydney
Image Credit: Ace Hotel | Supplied

An impossibly cool party vibe, great food, and a stunning fit-out: Ace Hotel Sydney sure does live up to the boutique hotel brand's reputation. Sydney is the 10th location for Ace and the first in Australia. Built into a former brickworks building on Wentworth Street in Surry Hills, rich design features (by Melbourne-based Flack Studio) play a huge part in the experience.

Most rooms are cosy, but sweeping ceilings, sleek fixtures, plush king-sized beds, and window seats built for lounging make up for the lack of space. If you are prepared to upgrade, the suites are where it's at with sweeping views of the city, u-shaped lounge areas, free-standing tubs, and signature Ace touches like in-room Rega turntables and D’Angelico acoustic guitars. 

While Surry Hills' best restaurants are at your doorstep, Ace Hotel's rooftop restaurant Kiln is excellent, and the lobby bar is one of our favourite spots for a martini. 

21 Oxford Street, Paddington Oxford House

You'll find Oxford House in the heart of Paddington. It's a prime location for some of Sydney's best shopping, cafes, restaurants, and bars, as well as being close to the CBD and beaches like Bondi and Tamarama. That said, you may not want to leave Oxford House, thanks to its sunny courtyard pool, poolside bar, and all-day diner. 

The Palm Springs-inspired hotel features 56 light and bright rooms and suites, each adorned with cool accessories, like custom Double Rainbouu bathrobes, Marc Newson crockery, Grown Alchemist hair care, and retro Marshall amp-inspired speakers.

Larger suites have lounge areas and balconies too and if you're here to party, we highly recommend popping next door to El Primo Sanchez for margaritas and dancing on tables. 

21 Little Albion Street, Surry Hills Crystalbrook Albion

Boutique Hotels Sydney - Crystalbrook Albion
Image Credit: Crystalbrook Albion | Instagram

Once a nun's convent built back in 1903, this charming Surry Hills guest house mixes old with new across 35 rooms in leafy Surry Hills. Beautiful, curious details are everywhere, from the grand staircase to the original artwork and custom furniture peppered throughout. 

There is a little rooftop terrace that peers out across the city lights, and the penthouse suite (“Big Albion”) has a freestanding bath, four-poster bed, and gleaming gold tiles. Other rooms on offer include fly-in, fly-out “Crash Pads”, “Cosy” and “Classic” rooms, and larger “Master” rooms with baths and plush bay windows. 

Instead of a bar or restaurant, you're encouraged to use the communal kitchen as your own. Crystalbrook Albion has a 24-hour honour bar system, meaning you can mix your own cocktails, grab a bottle of wine or some snacks, kick back in the bar or head to the secluded rooftop whenever you please.

202/210 Elizabeth Street, Surry Hills 202 Elizabeth

Boutique Hotels Sydney - 202 Elizabeth
Image Credit: 202 Elizabeth | Supplied

This 38-room, dog-friendly boutique hotel in the heart of Surry Hills is a stone's throw from the neighbourhood’s restaurants, bars, and theatres. 

Fitted out in a simple modern style over six levels by interior designer Lisa Madigan, 202 Elizabeth is splashed with works by Australian artists and designers, including Ash Leslie, and Lean Timms. Furniture is by Sarah Ellison, Rachel Donath, and McMullin & Co, as well as curated vintage and one-off pieces—no two guestrooms are the same.

Room features include large balconies, rain showers and bathtubs, luxury robes, and a complimentary mini-bar, and the hotel also boasts a peaceful courtyard and open-air rooftop space overlooking Central Station. A Handpicked Wines tasting room, which will also be a coworking space for guests, is set to be launched in the coming months, too.

Image credit: Ace Hotel | Supplied

Urban List Best Of: has our highest stamp of approval—curated lists of the very best recommendations for you to eat, do, see, buy, or book, carefully chosen by our Editors.

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