Best Budget Hotels Sydney 2026: Cheap & Affordable Stays from $130
Looking for the best budget and cheap hotels in Sydney? You’ve come to the right place. Whether you’re travelling on a tight budget or prefer to spend your money on food and sights rather than accommodation, I’ve put together tips on where to find affordable hotels across the city and which properties I’m happy to stay in.
Sydney is not known for cheap hotels. Prices rival London and New York, with average 3-star rooms starting at $250 per night and 5-star properties over $450. During peak season (Christmas, Vivid Festival, Mardi Gras), expect to pay double.
A “budget hotel” in Sydney typically means $170-250 per night, while the cheapest options start around $130. If you need something cheaper, look at private rooms in hostels, serviced apartments, or airport hotels.
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Best Budget Hotels in Sydney 2026: Stays from $130
Sydney is not a city known for affordable hotels. The reason is consistently high occupancy rates; most hotels in Sydney are 85% occupied year-round.
If you’re looking for the absolute cheapest place to stay in Sydney but you do not want a dorm room, here are your options:
- Hostels with private rooms– From $80-130 per night for a private double room. Our top pick is Sydney Harbour YHA (listed below) which offers private rooms with ensuite bathrooms and incredible harbour views from the rooftop.
- Budget hotels – From $130-250 per night. These are older properties that have been renovated, offering clean, comfortable rooms without the fancy extras like pools or room service.
- Airport hotels– From $130-195 per night. If you have an early flight or don’t mind being 20 minutes from the city by train, airport properties offer better value.
- Airbnb or serviced apartments – Can work out cheaper for groups or families, especially if you cook your own meals. This guide focuses on budget hotels – properties that offer good value, clean rooms, and convenient locations without breaking the bank.
How to Find Affordable Hotels in Sydney
I chose these hotels based on three things:
- They had to be well located – either within walking distance of the city centre or close to excellent public transport.
- They had to be clean; no one wants to sleep in a dirty room, no matter how tight their budget
- They had to have consistently good reviews online regarding customer service. All budget hotels suffer from the odd poor review when customer expectations are too high, but we have only included places that overall rate well.
What to expect in a budget hotel in Sydney
Set your expectations – you’re looking for good quality for the price. This means forgoing the extras, but that’s the trade-off for affordable prices in Sydney.
- Older properties that have been renovated and rebranded as ’boutique’ hotels
- More stairs than elevators, although some have both
- Some rooms may have shared bathrooms
- Fewer amenities than the big chain hotels – things like gyms and pools are more unusual.
- Limited reception hours – most will not have 24 reception.
- No onsite dining or room service – many have a cafe in the same building or next door.
Some of these properties list themselves as 3-4 stars on booking sites, but most budget hotels are realistically in the 2-3 star range. When the stars go up, so does the price. A 2-3 star rating doesn’t mean terrible – it just means fewer amenities.
Just a note about the guest ratings we share for each property. These ratings are from Booking.com. The lower ratings (the 7-8s) are often due to lack of facilities, something you would expect a budget property would lack. If you look closely, you will see we have not included any that do not have high scores for comfort and staff.
When is it impossible to get a cheap hotel in Sydney?
Finding cheap hotels in Sydney is tough. Forget any hope of a bargain during these times:
- Christmas and New Year
- Mardi Gras (Feb/March)
- Easter
- Vivid Sydney Festival (May/June)
- Any NSW school holiday period or a long weekend
These are the most expensive times to visit Sydney. Check NSW school holiday dates before you book. If you’re travelling at these times, book as early as possible and expect to pay over $350 a night. Consider looking further into the suburbs or booking an Airbnb for better value.
At these times, a quality hostel is a great idea. We have a shortlist of our favourite Sydney hostels here.
The best value hotels by location
The best value accommodation depends on what you want to see. Here’s where to look:
- For harbour views and tourist sites – Stay in The Rocks or Barangaroo. You’ll pay more but save on transport.
- For affordable rooms near everything – Stay in Potts Point or Darlinghurst. Great cafes and restaurants, 15-minute walk to the harbour.
- For the cheapest rooms in the city – Stay near Central Station or in Glebe. Prices drop the further south you go, but some areas around Central are run-down.
- For cheap beachside accommodation – Stay in Coogee or Bondi Junction. You’ll need 30 minutes to reach the harbour, but beach life is worth it.
Budget Hotels close to Sydney Harbour
Harbour views and budget prices don’t usually go together in Sydney, but there are a few exceptions. You can find both, as long as you’re happy with views from rooftop terraces or public areas rather than your bedroom window.
The hotels in this section are within a few minutes’ walk of the harbour foreshore, and some have harbour views from public areas.
YHA Sydney Harbour
Guest Rating: 8.9/10 | Location: The Rocks | View on Booking.com
This hostel made my best budget accommodation list because it’s special. The rooftop terrace view is among the best hostel views in the world. Also, cheap accommodation is rare in The Rocks.
This is a large property with 350 beds and is located on an archaeological site. The building has been developed around the remains of artifacts uncovered when excavation began.
Features:
- The hostel has excellent facilities with a large kitchen, games room, dining areas.
- All rooms, even dorms, have their own bathrooms.
- King and Queen rooms have a flat-screen tv.
- There are a large number of family and double rooms
- The hostel attracts all age groups from families with children to seniors, and everyone feels comfortable.
It is especially popular on NYE when a one-week minimum stay is required, and rooms are usually booked out by March. Read our full review of Sydney Harbour YHA with photos
Location: 110 Cumberland St, The Rocks
Who should stay here: Everyone! The hostel is good for friends travelling together, solo travellers, and families of any age. It’s a bit of a walk from the station so perhaps not great for mobility issues.
Ibis Sydney Barangaroo
Guest Rating: 8.0/10 | Location: Barangaroo | View on Booking.com
I stayed at the Ibis Barangaroo and found it better than expected for the price. The rooms are small (typical for Sydney budget hotels), but clean and comfortable with great beds.
The staff were particularly helpful, offering early check-in and good suggestions for dining and sightseeing.
- Modern, well-designed rooms
- Comfortable beds
- Free WiFi that works well
- 24-hour front desk
- Great location for Barangaroo’s restaurants
- Close to public transport
The location is hard to beat – Barangaroo ferry wharf is a 3-minute walk and Wynyard Station is 7 minutes away. While you won’t get harbour views from your room, the waterfront is just around the corner and the beautiful Barangaroo Reserve is perfect for a morning walk.
Location: 22 Shelley Street, Sydney
Who should stay here: Business travelers, couples, and solo travelers who prioritize location and value over room size.
Budget Hotels in the centre of Sydney CBD
The CBD isn’t as picturesque as other areas, but it’s walkable to main sites and close to shopping. Finding a cheap hotel in the Sydney CBD is challenging. However, a few properties consistently offer rooms under $250 a night, especially on weekends.
The Sebel Martin Place
Guest Rating: 8.1/10 | Location: Martin Place | View on Booking.com
Located just a few minutes’ walk from either St James or Martin Place stations. It won’t win design awards and the location is a bit sterile, but it’s within walking distance of most major attractions.
You’re well placed to explore Hyde Park and the historic Macquarie Street precinct.
You will be well placed to explore Hyde Park and take our historic Macquarie Street walk.
Features:
- Spacious rooms that all have a small kitchen area with a sink, microwave and kettle
- Modern furnishings
- Triple bed rooms available
- Coin-operated laundry (unusual for Sydney hotels)
There’s no on-site restaurant or room service, but there are many cafes close by for breakfast. You’re only 5 minutes’ walk from the shops of Pitt St Mall and ten minutes’ walk from Circular Quay. Prices fluctuate depending on demand but are often around $250 per night.
Location: Phillip Street Sydney
Who should stay here: Business travellers, solos and couples, shoppers
Megaboom City Hotel
Guest Rating: 8.3/10 | Location: Town Hall | View on Booking.com
Megaboom is centrally located for exploring the city, only 3 minutes’ walk from the Queen Victoria Building and within walking distance of the harbour. Many of Sydney’s best small bars are on your doorstep and you’re only minutes from Pitt Street Mall, so Megaboom scores top marks for location.
While the decor is a little dull, the rooms are clean and comfortable. They’re usually priced around $125-190 per night, making them good value.
Features:
- Free fast wi-fi
- Each room has a refrigerator
The hotel has only one elevator, so it can take a while if you’re on a higher floor, but the trade-off is a very quiet room. Some guests report hearing train rumblings from the first couple of floors. If you’re a light sleeper, request a room on an upper floor.
Overall, this property is great value for money.
Location: Level 1, 93 York St, Sydney
Who should stay here: Solos and couples only – the rooms can be on the small side.
Song Hotel Sydney
Guest Rating: 8.8/10 | Location: Museum Station | View on Booking.com
The Song Hotel, previously the YWCA, isn’t flash, but it’s worth considering if you’re on a tight budget. If you’re a light sleeper, bring earplugs – it’s located opposite the southern end of Hyde Park near a busy intersection leading to Kings Cross.
The upside of the noise is you’re in the middle of the city. It’s easy to reach Surry Hills, Darlinghurst and the CBD on foot. Even Darling Harbour is within walking distance. Hyde Park is right across the street, with plenty of space for kids to run around.
Features:
- Range of room sizes: single, double and some rooms that sleep four
- Some rooms with shared bathrooms to save money
- Premium rooms recently refurbished with double-glazed windows to reduce street noise
- Family rooms have microwaves to help save on food costs
The reviews are mixed, so take a look and see if any issues raised would concern you. The updated rooms seem to be popular if you can get one at a reasonable price.
Location: 5-11 Wentworth Avenue Sydney
Who should stay here: Shoppers, families with older children.
Darlinghurst, Potts Point & Surry Hills
This area between the CBD and the Eastern suburbs is home to many small boutique hotels. The 1930s apartment buildings that fill these streets have converted easily into small hotels, and there are some gems here.
All three areas have a village feel and are real foodie hotspots. Among the cafes and small bars, you’ll find pretty streets lined with beautiful Victorian homes from when this was where the colony’s wealthy lived in the 19th century.
The streets slope down to the harbour, offering lovely water views.
Kings Cross has cleaned up significantly from its red light district days. It’s much more sedate now, though not entirely sanitised. I feel safer here than around Central Station, but if you’re easily offended, some parts might still feel a bit seedy.
Hotel Challis
Guest Rating: 8.4/10 | Location: Potts Point | View on Booking.com
Located on one of the prettiest streets in Potts Point, Hotel Challis is one of the area’s most historic properties. Only a couple of rooms here fit the budget category – the small doubles at just 12m². They may be tiny, but the beds are comfortable and the location is excellent.
The staff get regular praise for their helpfulness. I’d happily stay here, and if I could afford the balcony room you might have trouble getting me to leave. From here you can walk into the city via Woolloomooloo and the Botanic Gardens.
Location: 21-23 Challis Avenue, Potts Point,
Who should stay here: Solo travellers, couples, and foodies
The Jensen
Guest Rating: 8.0/10 | Location: Potts Point | View on Booking.com
The Jensen is a small hotel offering friendly service in a vibrant area, with Kings Cross train station a 500m walk away. You can walk to the Botanic Gardens in 15 minutes and the city centre in 25 minutes. The street is lovely, with plenty of dining options including favourites Cho Cho San and vegetarian restaurant Yellow. There are a couple of supermarkets nearby too.
Features:
- Small but very clean and well-appointed rooms
- Shared bathrooms are clean and close to your room
- All rooms have air-conditioning
- Rooms with balconies available
- Quad or triple rooms make this a good choice for groups
There’s no lift in the property and no ensuite rooms, but neither would stop me from staying here for the right price.
Location: 71 Macleay Street, Potts Point,
Who should stay here: Solo and couple travellers are best suited here due to the room size.
No 9 Springfield
Guest Rating: 8.2/10 | Location: Kings Cross Station | View on Booking.com
No 9 Springfield is a good budget option located just a 240m walk from Kings Cross station. With prices here often around $130-160, there is lots to like about this place.
This street reminds me of inner London. It’s just minutes from excellent dining on Victoria Road, including The Butler with great city views and Asian fusion hotspot Ms G’s.
Features:
- Old-style windows that open for good air circulation
- Free WiFi for all guests
- Each room has its own fridge
- On-site restaurant
- Shared laundry facilities
The staff are friendly, and the surrounding area offers lots of dining choices. Single rooms are available but tiny, so even if travelling alone, I’d probably pay extra for a double.
Location: 9 Springfield Avenue Potts Point
Who should stay here: Solo travellers, couples, and foodies
Budget Hotels to the south of the CBD
South of the CBD includes areas around Central Station: Glebe, Redfern, and Chippendale. Some parts around Central Station are run-down with building sites and neglected properties. However, pockets like Chippendale and Surry Hills have transformed into sought-after hipster hotspots. Check any address on Google Maps Street View before booking, or ask for local opinions in our Facebook group.
I suggest you check any address on Google maps street view to see what the surroundings look like. Alternatively, pop over to our Facebook group and ask for a local opinion.
Metro Hotel Marlow Sydney Central
Guest Rating: 7.4/10 | Location: Darlinghurst | View on Booking.com
The Metro Marlow is a stone’s throw from the Capitol Theatre and Thai Town, making it perfect for anyone catching a show and grabbing a good meal. It’s a 7-minute walk to Central Station and 3 minutes from the light rail, making it well located for exploring the city and inner suburbs.
Features:
- Rooms are larger than average for hotels at this price in Sydney
- Small rooftop pool
- 24-hour reception and room service
- Family rooms available and many rooms sleep three
Location: 431-439 Pitt St, Sydney
Who should stay here: travellers wanting the facilities of a chain hotel without the price tag
Budget Hotels North of Sydney Harbour
If you want to escape the city’s hustle and bustle, properties on the north shore with easy ferry access are a good choice.
You’ll spend 20 minutes getting back to your hotel after exploring the city, but you’ll experience the harbour lifestyle that most Sydneysiders can only dream of.
View Sydney
Guest Rating: 8.6/10 | Location: North Sydney | View on Booking.com
A stay at View Sydney puts you metres from the harbour’s edge and a couple of minutes from North Sydney Station. While the hotel offers lovely harbour views, a budget room here gets you a North Sydney view (no sparkling harbour view from your bedroom window).
Each room at North Sydney view offers:
- Small table and two chairs
- On-site gym and restaurant
- Outdoor public patio area with harbour views
- Comfortable work desk
- Large window for natural light
- Flat-screen TV and WiFi
This is a great choice and if you are not on a budget their harbour view rooms are lovely. Who knows, you might get an upgrade.
This is a great NYE hotel.
Location: 17 Blue Street, North Sydney
Who should stay here: Anyone wanting a decent-sized room just 10 minutes from the city by train.
Cremorne Point Manor
Guest Rating: 8.53/10| Location: Cremorne | View on Booking.com
This two-storey Federation mansion has been recently refurbished, and the result is a beautiful guesthouse with harbour views well above its price tag. Winner of 5 Tripadvisor excellence awards, the customer service is excellent and the value for money is hard to beat.
Features:
- Full range of rooms from tiny singles with shared bathrooms to a two-bedroom penthouse
- The luxury penthouse sleeps five at around $120 per person per night, making it good value
- Well furnished Harbour views from some rooms and public areas
The location is perfect – just a 3-minute walk to the ferry and an 8-minute ride across the harbour to Circular Quay. Beautiful harbour walks surround you, and McCallum Pool is minutes away. You can even walk to Taronga Zoo.
Tip: Disabled access is available with assistance (lift), but this property is not ideal for anyone with mobility issues. Last-minute rooms are often available outside peak periods at excellent prices.
Location: Cremorne Road, Cremorne Point
Who should stay here: Anyone wanting to have a more local experience, great for solo travellers and family groups.
Cheap Hotels in the Eastern Suburbs
The Eastern suburbs of Woollahra and Paddington are home to some serious wealth and not exactly a spot you would expect to find bargain hotel rooms; however, we have managed to find a couple that we would consider.
The Hughenden Boutique Hotel
Guest Rating: 8.1/10 | Location: Woollahra | View on Booking.com
This Victorian property, built in 1878, sits on one of Woollahra’s prettiest streets with buses to the city and Bondi Beach right outside. The decor is French Renaissance style, and each room is individually furnished. This hotel has been recently renovated and offers great value for Sydney. It appeals to lovers of old-world charm.
Features:
- Variety of rooms including small doubles, queens, kings, suites
- Spacious family and deluxe rooms
- Five dog-friendly rooms with balconies if you’re travelling with your dog
- Several communal sitting areas to relax
- Small on-site cafe
It’s a short walk to Centennial Park, which is a great spot to see wild cockatoos and for a morning run.
Location: 14 Queen Street, Woollahra
Who should stay here: travellers with dogs, those who love old world charm, travellers looking for an upmarket quieter location.
Budget Hotels by the Beach in Sydney
Budget and beach don’t go together well in Sydney, with most hotels costing over $200 a night. There are some exceptions, but check prices before getting excited.
If you want to spend time at the beach, staying in a beachside hotel makes sense. Keep in mind you’ll have at least a 30-minute commute to the harbour’s main attractions, and beach suburbs get noisy on weekends.
lyf Bondi Junction
Guest Rating: 8.8/10 | Location: Bondi Junction | View on Booking.com
I recently stayed at lyf and it’s unlike any other hotel in Sydney. Think of it as a cross between a co-working space and a boutique hotel. While the rooms are compact (17m²), they’ve made excellent use of the space – everything has its place and the Japanese-style platform bed is surprisingly comfortable.
Features:
- Impressive communal kitchen with high-end Miele appliances
- Rooftop gym with city views
- Stylish co-working spaces in the lobby
- On-site restaurant and bar (Bonnibel)
- Automated room features (curtains open automatically when you enter)
- Laundry facilities with a view
The location is excellent – you’re a 4-minute walk from Bondi Junction station and next door to Westfield. Bondi Beach is 10 minutes by Uber or a quick bus ride. The city is a quick train ride away.
Tip: If you’re driving, parking at Westfield will set you back $60 a day – consider leaving the car at home if you can.
Location: Spring Street, Bondi Junction
Who should stay here: Perfect for solo travelers, digital nomads, and business travelers who value smart design and social spaces over room size. Not ideal for families or couples who need more space.
Coogee Sands Hotel
Guest Rating: 8.8/10 | Location: Coogee Beach | View on Booking.com
The Coogee Sands is located at the northern end of Coogee Beach, right next door to the popular Coogee Pavilion. It’s less than 50 metres from the beach, and the Bondi to Coogee coastal walk starts right outside the front door. Buses to the city and Bondi Junction are a short walk away.
Features:
- Variety of rooms, some with water views
- All rooms have kitchenettes
- Level 6 has a sundeck with BBQs
- 24-hour reception
- No in-house dining but chargeback service from several local restaurants
Tip: This is a pretty busy area, so it can be a little noisy. Request a room away from the street if this bothers you or bring earplugs as I do.
Location: 161 – 167 Dolphin St, Coogee
Who should stay here: Good choice for families with plenty of space right outside the door to run around. Also well suited to those who want to combine site seeing with a beach holiday.
Hi. All the Sydney Harbour accommodations listed here are sold out for around NYE. As a single female traveler who will be in Australia first time and solo for NYE, I was looking into the Pier One Harbour Party. Accommodations at the Pier One Marriott and vicinity are extremely pricey and have 3 to 5-night minimum stay requirements around NYE. I can only stay for 3 nights (12/30-1/2). I do not want to stress about getting to the party or back to my hotel that night; which one of these areas/hotels would be my best bet? Is it correct to assume train would be the main option for getting around that night? Which areas are most accessible? Would it be possible to walk to Pier One from any of these areas? Many thanks in advance!
Yes it is possible to walk to Pier One – It is literally under the Harbour Bridge 🙂 If you can give us an idea of your budget perhaps we can help. Trains run all night and are really busy for the first few hours after midnight. The YHA Sydney Harbour starts their NEW bed sales tomorrow so that might be a good bet if you are looking for a budget choice although they may have a one week minimum it could still be less than 3 nights elsewhere? It also includes tickets to their rooftop party.