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In a country spoiled for world-class stays, standing out takes much more than crisp linens and fine dining. According to the experts behind the globally renowned World’s 50 Best Hotels, Capella Sydney knows exactly what's required. Housed in a grand old sandstone building in the heart of Circular Quay, the high-end 192-room hotel was just named Australia’s top hotel for the second year running, continuing to set the benchmark for luxury Down Under.
Revealed at an awards ceremony in Paris this week, the fourth edition of the global ranking celebrates the 50 greatest hotels across six continents. The ranking is determined by votes from more than 800 anonymous experts, including hoteliers, journalists and experienced luxury travellers.
In 2026, the ultra-luxury Rosewood Hong Kong was crowned the world’s best hotel, followed by Capella’s sister property in Bangkok. Capella Sydney wasn’t far behind. After its No. 12 debut in 2025 (just two years after opening), the harbourfront haven secured 16th place this year, taking the title of the Best Hotel in Oceania.
Housed inside the beautifully restored former Department of Education building in Sydney’s Sandstone Precinct, the 192-room hotel is a blend of heritage architecture, chic modern design and an impressive collection of more than 1,400 artworks. The building was originally designed by NSW Government Architect George McRae, and these days, its grand interiors house everything from the 20-metre heated pool and Auriga Spa to the opulent Brasserie 1930, NYC-coded McRae Bar and afternoon tea fave Aperture.
Earlier this month, The World’s 50 Best released a longlist of the 51-100 finest hotels, and once again, only one Aussie hotel made the cut. Brisbane’s Palm Springs-coded Calile Hotel landed at No. 83, making it the only property in Oceania to feature every year since the awards launched in 2023 (having ranked 12th in 2023, 25th in 2024 and 34th last year).
You can check out the full list of the world’s 50 best below or read more here.
The World’s 50 Best Hotels for 2026:
- Rosewood Hong Kong, Hong Kong
- Capella Bangkok, Bangkok
- Four Seasons Bangkok at Chao Phraya River, Bangkok
- Atlantis The Royal, Dubai
- Passalacqua, Lake Como
- Rosewood São Paulo, São Paulo
- Mandarin Oriental Qianmen, Beijing
- Upper House Hong Kong, Hong Kong
- Chablé Yucatán, Chocholá
- Mandarin Oriental Bangkok, Bangkok
- Aman Tokyo, Tokyo
- Four Seasons Firenze, Florence
- Claridge's, London
- Hôtel de Crillon, Paris
- Jumeirah Marsa Al Arab, Dubai
- Capella Sydney, Sydney
- Raffles Singapore, Singapore
- Casa Maria Luigia, Modena
- Le Bristol, Paris
- Cheval Blanc Paris, Paris
- Desa Potato Head, Bali
- San Ysidro Ranch, Santa Barbara
- One&Only Mandarina, Riviera Nayarit
- Bulgari Tokyo, Tokyo
- Las Ventanas al Paraíso, Los Cabos
- Royal Mansour, Marrakech
- Four Seasons Astir Palace, Athens
- Raffles London at The OWO, London
- Copacabana Palace, Rio de Janeiro
- The Taj Mahal Palace, Mumbai
- The Peninsula Istanbul, Istanbul
- Bulgari Roma, Rome
- Patina Osaka, Osaka
- Mount Nelson, Cape Town
- Nihi Sumba, Sumba Island
- Badrutt's Palace, St. Moritz
- Park Hyatt Kyoto, Kyoto
- Hôtel du Couvent, Nice
- Portrait Milano, Milan
- Hôtel de Paris Monte-Carlo, Monaco
- Plaza Athénée, Paris
- Hotel Sacher Vienna, Vienna
- Estelle Manor, Witney
- Hotel du Cap-Eden-Roc, Antibes
- Amangiri, Canyon Point
- The Peninsula Hong Kong, Hong Kong
- Maroma, Riviera Maya
- Aman Nai Lert, Bangkok
- The Connaught, London
- San Domenico Palace, Taormina