The best budget hotels and hostels in Sydney

The 1980s vintage hotel formerly known as the Y has been renamed and madeover. From cosy micro nooks to deluxe stays, every room at Song Hotel is as sleek as the next. Song Kitchen serves international cuisine in collaboration with sustainable producers. But, the highlight of this place has to be the location; it's right next to the famous Hyde Park and Oxford Street, and close to a bunch of trendy shops, bars and places to eat – including Paddy's Markets. 

Mood? Minimalist and bright. 
Budget range? On the high end of cheap. 
Time Out tip: You’re spoilt for choice for restaurants, bars and entertainment nearby. The innovative dining cultures of Surry Hills and Darlinghurst are a stone’s throw away, while the CBD’s Thainatown and Koreatown are just two blocks west. Burn off any over-indulgences at Cook + Phillip Park Pool, one block north.

Staying at the heritage-listed Sydney Park Hotel is like staying at your cool Nan’s house – all the retro style with a familiarly warm welcome. The pub hotel’s recent renno complements the building’s character. Sleek leather armchairs and a compact storage unit are made more comforting with plush pillows, recycled Merino-wool blankets and neon artwork. The Superior King room boasts a decorative fireplace and wall-mounted telly with every streaming service. The bathrooms are super clean, but you might need to wait in line – there are only a few toilets and showers between eight rooms. The shared kitchen does a complete turnaround in style, with smooth monochrome surfaces and stainless steel appliances giving budget-conscious travellers the option to dine in.

Mood? Blending retro modern. 
Budget range? One of the cheapest. 
Time Out tip: If you are heading out, the hotel puts you in prime position to explore the late-night haunts of Newtown. 

Newtown and Enmore are incredibly popular neighbourhoods with Sydneysiders. They’re crammed with decent dining options for any budget. There are great bars and pubs on every block, and because the area is outside Sydney’s lockout zone, the party can go on all night. The low-key Urban Newtown opened in late 2014 and brings the Inner West-vibes inside with cool colours and bare concrete finishes and graffiti art on the walls. The 79 rooms are clean and bright, with suite, kitchenette and balcony rooms available – and some are even pet-friendly. 

Mood? Cool and hip. 
Budget range? Average among the 'cheap hotels in Sydney' category. 
Time Out tip: The Urban is by far the most convenient hotel to the Enmore Theatre – one of Sydney’s most-loved live music and comedy venues. There’s a big-name show on every other night, so see who’s playing while you’re in town.

If you’re looking for a party pad with design chops and the soul of a grown-up hostel, Hotel Harry will hit the spot. All rooms have antique-inspired fixtures, in keeping with the hotel’s heritage listing (it was built in 1912), and the decor is fun and vibrant. Because this is a heritage building, they can’t mess with the facade, which means there’s not a lot of uniformity between rooms. Located above very popular Surry Hills bar Harry's, the hotel, opened in 2015, has 20 rooms, and infinite opportunities to mingle with the locals. The speakeasy-style bar downstairs is packed on weekends, with international DJs bringing the party vibes until late. Just because it’s a party bar doesn’t mean you can’t eat there – the menu is dude-food heavy (think dirty burgers and tacos) but well executed. The bar kitchen takes care of the room service, so if you’d rather not socialise, you can just eat in.

Mood? Speakeasy-cool. 
Budget range? Hostel-worthy prices. 
Time out tip: You get what you pay for here – there are fairly spacious suite options, and much more affordable, smaller spaces – including single bed rooms. Light sleepers should avoid lower-level rooms overlooking the central courtyard which can be very loud on weekends.

If aesthetics are more important to you than convenience, then Cremorne Point Manor may well be for you. Set in a 19th century harbourside building on the leafy north shore of Sydney, surrounded by millionaires’ mansions, the Manor is one of the city’s oldest hotels. Old does not, however, mean dated. Rooms have been renovated as recently as 2017. Design is modern, in a light, bright palette that complements the hotel’s sunny aspect. Surrounded by waterside walking tracks and not much else, the Cremorne Point Manor will allow you to experience one of the most unusual virtues of being a Sydney local and get about by ferry. The hotel is an eight minute walk to Cremorne Point Wharf, and from there you can catch a ferry to the city in just ten minutes – meanwhile, Taronga Zoo is just one ferry stop away in the other direction. Many rooms have harbour views and generous ensuite bathrooms.

Mood? Scenic surroundings. 
Budget range? Slightly higher than the cheapest options. 
Time Out tip: The ferry is close to this hotel, but the nearest shopping strip is a 20-minute walk uphill. If you’re drawn more to Sydney’s natural beauty than its activities, then this spot shows the city in one of its finest aspects – but you’ll need to factor in extra time for getting around.

Over the course of a two year revival, the Terminus Hotel has swapped dust and dereliction for boutique room service. But co-owners and restoration partners of the Terminus haven’t forgotten its historic place in Pyrmont, with the hotel’s interiors maintaining some original architectural features and a traditional feel. Nine double rooms are on offer, two boasting private ensuites and the remaining seven sharing bathroom facilities. Sharing a bathroom means saving on cost, and as Airbnb hosts the booking function for the hotel there's no reception area or communal areas – except the pub downstairs, that is. As you'll be sleeping above a potentially noisy pub, be ready to join the party to save on the price of a more centrally located bed for the night. 

Mood? A stylish boutique. 
Budget range? Pretty cheap. 
Time Out tip: You'll be a stone's throw from trusty Italian trattoria Bar Zini for breakfast, dinner and drinks. You're also walking distance from the Star casino and the Lyric Theatre. 

Hostels are a great budget option if you're looking to socialise in a city, and a stay at Nomads comes with plenty of opportunities to do so. As one of the best Sydney hostels, this place has a jam-packed events calendar, including daytime excursions and themed nights at the neighbouring bar, Scary Canary. Those needing some peace and quiet can book a room with a private bathroom, and there's a huge shared kitchen on the bottom floor with lots of space to cook and enjoy your meal without being disturbed (unless you want to be). 

Mood? For sociable travellers. 
Budget range? Shared dorms account for tight budgets. 
Time Out tip: Be sure to really make your money stretch by heading to the kitchen for free pancakes on Tuesdays, using your guest discount at the bar and trying to win the cash prize at one of their fun games nights.