Iesha McRae

​​No one’s accusing Sydney of being cheap, but that doesn’t mean there aren’t a few budget-friendly hotels to be found in this sparkling diamond of a city. To find the best affordable hotels in Sydney, we’ve done some digging – and have put together this guide based on location, vibe, comfort and, naturally, cost. Our team of writers (including long-time Sydney local Alannah Sue) have tried and tested each stay to make sure the low cost doesn’t mean you’re compromising on quality. Hotel obsessive (Time Out Sydney’s Travel and Hotels Editor Winnie Stubbs) has triple checked the list to make sure it’s up to scratch.   From an off-the-beaten-track four-star secret (Cremorne Point Manor, we’re looking at you) to a fun youth hostel right on the harbour, these are the very best affordable stays in the city.  NB: Be warned, peak season in Sydney has dizzying highs and even the most reasonably priced accommodation can spike over the New Year’s Eve period. So, shop around if you're looking for a place to lay your head over the holidays. Editor's quick picks: Best for sunset views: YHA Sydney HarbourBest for a socially impactful stay: Song Hotel SydneyBest affordable beachside stay: Coogee Bay HotelBest airport accommodation: Moxy Sydney Airport Stay in the loop: sign up for our free Time Out Sydney newsletter for more news, food & drink inspo and activity ideas, straight to your inbox. RECOMMENDED:Can’t stretch to that? Pack your tent and check out the best camping spots near Sydney.

Conveniently located in the heart of Haymarket, Caption by Hyatt is a well-connected inner city stay full of character and colour. An ambitious redevelopment of a former carpark, the hotel opened in October 2025 – a completely new build with bold artwork and rooms bursting with personality. As a design fan, I was impressed to see such a refreshing, creative departure from the minimalist look common in many modern hotels. The art throughout the hotel is by local artists Chris Yee, Samy Baby and Hiromi Tango, whose contemporary illustrations draw from Haymarket’s rich heritage and street culture, which I was immediately drawn to. At the centre of the hotel is Talk Shop, an all-day venue where guests can eat, drink, work, socialise, or just chill out in the corner with a book. The “you can do you and be you” approach embraced by Caption by Hyatt uses tech-forward features including digital check-in, digital keys, QR code mobile food ordering – it could make the stay feel impersonal, but the Talk Shop hub connects you to a sense of community in the heart of the building.  Why stay at Caption by Hyatt? From the moment I walked in, I immediately noticed how aesthetic and thoughtfully designed the space was. The interiors feel modern, quirky, and unique – distinct from your traditional hotel look.  The hotel’s sustainability practices were another standout for me – with upcycled furnishings, eco-conscious design elements, zero-waste initiatives, and a complete absence of single-use

For more than 150 years, Coogee Bay Hotel has been delivering good times by the ocean, long before Coogee grew into the lively seaside suburb it is today. Largely thanks to its central location, locals have long treated the hotel as the beating heart of the neighbourhood; a place to meet up for a post-work drink or a big group celebration. Now, fresh from a thoughtful renovation (complete with brand-new Beach Bar and Dining restaurant), the neighbourhood stalwart is back – offering a laid-back base that offers carefree beachside energy just a short drive from the CBD. My boutique ocean-view studio became my own little coastal sanctuary: modern, warm, beautifully designed and just steps from Coogee Beach. With relaxed dining, busy bars, frequent live entertainment and two distinct accommodation styles, Coogee Bay Hotel is a solid option if you’re looking for a relatively affordable beachside stay in the Harbour City. Whether you come for the food, the ocean views or the community spirit, it’s a stay that captures the easygoing essence of Sydney’s south-eastern beaches. Why stay at Coogee Bay Hotel? A landmark in the Eastern Suburbs for over a century and a half, Coogee Bay Hotel has evolved from seaside schoolhouse to beloved pub to a modern hospitality hub offering dining, accommodation, events and even its own bottle shop, The Barrel. While its iconic heritage façade remains firmly in place, the interior has stepped confidently into a new era with the recent addition of Beac

If you’re looking for an affordable, accessible place to stay in Sydney, YHA Sydney Harbour is hard to beat. The rooftop terrace alone is worth it – with sweeping views of the Opera House and the iconic Harbour Bridge, it’s the perfect spot for sunrise photos, sunset drinks, or just sitting back and soaking up the city skyline. Aside from the stunning rooftop space, what makes this property unique is its location; right in the beating heart of Sydney’s historic Rocks precinct. The accommodation itself is a charming blend of old and new: modern facilities, sustainable design, and nods to the city’s past throughout.The vibe here is buzzing and international, thanks to travellers from all over the world. Plus, you’re just a short walk from the Harbour City’s must-see attractions, so whether you’re sightseeing, socialising, or just chilling out, this place ticks all the boxes. Why stay at YHA Sydney Harbour? There are plenty of reasons to choose YHA Sydney Harbour for your Sydney base, and they go well beyond the panoramic rooftop views or the central location. What stood out to me most was the property’s commitment to sustainability. YHA Sydney Harbour is proudly Sustainable Tourism Certified by Ecotourism Australia, which reflects a genuine investment in environmental conservation and community engagement. Sustainability is woven into the property’s DNA: rainwater is collected to flush all toilets, the open-air hallways encourage natural airflow (reducing the need for air condi