8 Best Budget Hotel Accommodation Options in the Sydney CBD

Last updated: October 18, 2022

Where to find affordable accommodation in Sydney? We have listed some of the best budget accommodation options in the Sydney CBD. Cheap yet good quality hotels that don’t hurt your wallet.

Staying in the Sydney CBD keeps you close to all the action and the city’s most popular tourist attractions and landmarks. It also gives you great options when it comes to restaurants, shopping malls, and theaters.

But staying overnight in Sydney is expensive, especially in hotels in or close to the CBD. However, if you spend a bit of time researching accommodation options, you will find that there are still great budget hotels available.

They may not always provide the luxury we wish for, but the below 8 budget hotels are of very decent quality, are clean, and are in great locations.

Top 8 Cheap Sydney Hotels:

Hotel Location
Travelodge Hotel Sydney Martin Place Sydney CBD Reviews
Sydney Harbour YHA The Rocks Reviews
The Australian Heritage Hotel The Rocks Reviews
Wake Up! Sydney Sydney Central Reviews
Sydney Harbour Bed and Breakfast The Rocks Reviews
Song Hotel Sydney Sydney CBD Reviews
Sydney Central YHA Sydney Central Reviews
YEHS Hotel Sydney CBD Sydney CBD Reviews

Top 8 Cheap Sydney Hotels

Here is our list of budget places to stay in the centre of Sydney, close to all the major tourist highlights and also public transport.

Prices generally vary from around $80 up to $220, which by Sydney standards is considered reasonably affordable.

Looking for affordable hostel accommodation instead? Check out our shortlist of some of the best hostels in Sydney.

1. Travelodge Hotel Sydney Martin Place

Travelodge Hotel Sydney Martin Place
Travelodge Hotel Sydney Martin Place

Located in a quiet street close to Martin Place and St James train station, Travelodge Hotel Sydney offers comfortable budget accommodation at very reasonable prices.

All major tourist attractions, such as the Opera House and Harbour Bridge in the north and Darling Harbour in the west, are within walking distance.

Facilities include hi-speed WiFi, parking, laundry, luggage storage and an airport shuttle. Note that there is no onsite restaurant or cafe, but with tons of great restaurants in the area, that shouldn’t be a problem.

This is a no-nonsense, comfortable budget accommodation option in a great location.

Book this Hotel

2. Sydney Harbour YHA

Sydney Harbour YHA
Sydney Harbour YHA

Opened in 2009, the modern Sydney Harbour YHA in The Rocks exceeds all general expectations most people would have from a hostel.

Built above archaeological remnants of colonial Sydney, this award-winning hostel combines premium facilities with a true heritage experience.

Sydney Harbour YHA has shared, private and family rooms available, all with free linen, WiFi, and access to the fully equipped communal kitchen and rooftop terrace.

There is also the option to upgrade to a premium room with widescreen TV and partial city and Harbour views.

Facilities throughout the hostel include air-conditioning, an onsite ATM, barbecue, laundry, food store, fast WiFi, a TV room, and a tour desk.

Book this Hotel

3. The Australian Heritage Hotel

The Australian Heritage Hotel
The Australian Heritage Hotel

Established in 1914, the iconic Australian Heritage Hotel is one of the most prominent buildings in the historic precinct of The Rocks.

The Australian Heritage Hotel is also a pub, but not just any pub. Staying there means you will get to enjoy a wide range of Australian craft beers as well as a great selection of gourmet pizzas.

This unique hotel has double, queen and twin rooms available, as well as family suites, all located on the first floor, right above the pub.

Facilities include traditional bathrooms with shared facilities, complimentary continental breakfast, a guest room with TV, video, and tea and coffee making facilities, free WiFi, and complimentary luggage storage.

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4. Wake Up! Sydney

Wake Up! Sydney
Wake Up! Sydney

Conveniently located right next to Central Station in an eight-story heritage building, Wake Up! Sydney is a purpose-built hostel with more than 500 beds.

This multi-award-winning hostel complex is also home to a bar, restaurant, café and travel agency, with public transport right at your doorstep.

Wake Up! Sydney is a great option for those looking for cheap, clean and friendly accommodation in a super central location.

Facilities include free WiFi, 24-hour check-in, and a range of different rooms to choose from, private as well as shared.

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5. Sydney Harbour Bed and Breakfast

Sydney Harbour Bed and Breakfast
Sydney Harbour Bed and Breakfast

If you’re looking for a unique and authentic B and B experience in the heart of The Rocks, Sydney Harbour Bed and Breakfast is an excellent choice.

The small hotel is housed in a fully restored heritage terrace building, with all rooms refurbished with hand-crafted furniture.

All beds in the boutique rooms at Sydney Harbour Bed and Breakfast are queen size, with facilities such as free WiFi, flat-screen TV, breakfast buffet and air conditioning.

Staying at Sydney Harbour Bed and Breakfast is very different from staying at major hotels, with a more personalized experience in historic surroundings.

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6. Song Hotel Sydney

Song Hotel Sydney
Song Hotel Sydney

Situated just south of popular Hyde Park close to Pitt Street Mall, Song Hotel Sydney offers standard budget accommodation, with facilities such as WiFi, baggage storage and free breakfast.

Staying at Song Hotel Sydney is affordable and clean, but it’s also very basic without any bells and whistles, which is perfectly fine if that’s exactly what you’re looking for.

This is a great budget option if you wish to be staying in the southern part of the Sydney CBD, close to Oxford Street, Surry Hills, and Central and Museum train station, without hurting the wallet.

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7. Sydney Central YHA

Sydney Central YHA
Sydney Central YHA

Another hostel that deserves a spot on this list of budget Sydney hotels is the popular Sydney Central YHA, located only moments away from Central Station.

This world-class hostel is housed in a recognisable heritage-listed building between Central Station and Sydney’s bustling Chinatown.

Sydney Central YHA is one of Sydney’s most popular hostels, so it’s best to book early to take advantage of the perfect location and excellent facilities.

Besides shared rooms, Sydney Central YHA also offers private rooms. And with facilities such as a heated pool, a sauna, a communal kitchen, a cafe and a restaurant, you are certainly going to enjoy your stay there.

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8. YEHS Hotel Sydney CBD

YEHS Hotel Sydney CBD
YEHS Hotel Sydney CBD

If you wish to stay close to Chinatown, Darling Harbour, World Square Shopping Centre, and Town Hall Station, the YEHS Hotel Sydney CBD is a very affordable budget accommodation option to consider.

This is another no-frills, basic hotel that offers friendly and comfortable Sydney accommodation, close to public transport, nightlife, and major tourist attractions.

The hotel offers basic but good amenities, such as instant coffee, WiFi, baggage storage, and a shared lounge area, and the rooms are quite spacious and well presented.

Book this Hotel

Final Thoughts

As you can see from the list above, staying overnight in Sydney can still be reasonably affordable with various budget hotels to choose from.

The most important thing is to have a room in a clean and safe environment, as most of your time in Sydney will be spent outside exploring anyway.

If we had to pick a favourite from this list of cheap Sydney CBD hotels then it would be the Sydney Harbour YHA. It suits both backpackers looking to sleep in shared accommodation, as well as couple travellers and families in need of an affordable private room.


Budget hotel accommodation in Sydney CBD


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