The best luxury hotels and guesthouses in NSW

Standing proudly between the palm trees above the glimmering curve of Wategos Beach, Raes is Byron Bay’s most iconic stay – a whitewashed Mediterranean-style mansion that’s been setting the gold standard for luxury in NSW since 1994. With just seven suites, a spa, and an acclaimed restaurant that spills onto sun-soaked terraces, it’s intimate, indulgent and unmistakably Byron. Expect marble bathrooms, designer bedrooms and service that’s polished but never pretentious – it’s the kind of place that you’re desperate not to leave.

Time Out tip: If the original property is at capacity, you can check out the recently opened sister property just around the corner. 

Address: 6-8 Marine Parade, Byron Bay NSW 2481

Welcoming a maximum of 400 guests at any one time, Lord Howe Island – the magical coral-fringed paradise off the coast of northern NSW – is arguably the state’s most exclusive holiday destinations, and setting the gold standard for stays here is the magnificent Capella Lodge. With far-reaching views of the island’s twin peaks and the turquoise waters that surround the island, the lodge blends barefoot ease with five-star indulgence – an exceptional on-site spa, degustation dining, and an infinity pool melting into the ocean. With only a handful of suites and an attentive team on site to attend to your every whim, Capella Lodge offers straight-up tropical seclusion in the most luxurious fashion.

Time Out tip: Take the (free-to-borrow) electric bikes to the base of nearby Mount Lidgbird for the spectacular ‘Goat House’ hike – can confirm you’ll earn your spa treatment and three-course dinner.

Address: Lagoon Rd, Lord Howe Island NSW 2898

Hidden among the rolling hills of the Southern Highlands, Osborn House is a heritage guesthouse turned modern country retreat – the Southern Hemisphere’s answer to Soho Farmhouse. Luxe, perfectly eccentric suites pair antique timber and vintage wallpaper with plush velvet, freestanding tubs and open fires – the kind of details that make hibernation deeply appealing. The restaurant champions local produce with flair, the spa is world-class, and the forest-fringed setting (complete with forest bathing deck) feels worlds away from the hum of the city (though it’s just two hours from Sydney).

Time Out tip: Pack your tennis whites.

Address: 96 Osborn Ave, Bundanoon NSW 2578

This 55-acre estate in the Byron hinterland describes itself as "The Hotel of Good Times". Home to a 25-metre pool overlooking the rolling hills, an Argentinian-inspired outdoor dining space serving farm-to-table fireside feasts, and a floating sauna, we're willing to agree that it's an accurate description. The brain child of a group of friends from the creative hospitality industries, Sun Ranch is a luxury hotel with character: it's quirky and sun-soaked and a very Byron brand of sexy. 

Time Out tip: While you’re in the area, book dinner at Ciao Mate in nearby Bangalow, or head in to Byron’s beloved Bar Heather.

Address: 17 Byron Creek Rd, Coopers Shoot NSW 2479

Bannisters by the Sea is like every advert you’ve ever seen for a holiday: infinity pool melting into the ocean and slow, dreamy days that end with perfect plates of seafood overlooking the waves. Housed in a former motel, the carefully restored, beach house-style boutique hotel opened in 2002, quickly cementing itself as one of the state’s most lusted-after coastal stays. In 2009, beloved English-born celebrity chef Rick Stein opened his first restaurant outside of the UK within the hotel’s walls, transforming the hotel into a one-stop shop for a coastal weekend. The on-site restaurant is exceptional, but it’s worth venturing out to explore the local foodie scene while you’re in the area. Our top local picks are Milk Haus, The Milton Hotel, Gwylo and Fine Food Store.  

Time Out tip: Not all rooms are created equal – for a top-tier stay at Bannisters, book one of the Collette Dinnigan penthouses.

Address: 191 Mitchell Parade, Mollymook Beach NSW 2539

If you're looking for a luxe, sexy stay just steps from some of the best hikes in the state, Chalets at Blackheath has your back. The architecturally-stunning freestanding rooms hide at the end of dusty paths that weave between the newly thriving trees. Amongst the bush, you’ll also find a wide communal firepit where guests roast marshmallows on clear, cloudless nights, and a fleet of e-bikes waiting to be taken for a spin along the sun-drenched mountain paths.

Time Out tip: Although the chalets are well equipped with everything you need to cook up a winter feast by the fire or a summer barbecue under the stars, it’s worth checking out at least one restaurant in town during your stay. Our Pick? Frankie and Mo’s – a gorgeous family-run wine bar serving up seasonal dishes and excellent, low-intervention vino.

Address: 394 Evans Lookout Road, Blackheath NSW, 2785

The passion project of two sisters on a mission to capture the essence of holiday nostalgia, Halcyon House is an ornately stunning fever dream of a stay – antique furniture drenched in coastal sunshine and cocktails served poolside on plush stripy sunbeds. Found on the sparkling shores of Cabarita Beach (just north of Byron Bay), the reimagined surfing motel opened way back in 2015, and the eclectic interiors (brought to life in collaboration with Sydney-based architect Virginia Kerridge and Brisbane-based interior designer Anna Spiro) only get more beautiful with age. Spend your days between the beach, the spa, the sun-soaked pool and Paper Daisy, the exceptional on-site restaurant.

Time Out tip: While you’re in the area, book dinner or lunch at Pipit – a next-level fine-dining gem just 10 minutes drive from the hotel.

Address: 21 Cypress Cres, Cabarita Beach NSW 2488

Looking for a hyper-luxe private estate to book out with a big group of friends? Enter Lo Scoglio. Set among the rolling hinterland of Coopers Shoot, just 10 minutes from Byron Bay, this 12-person property is a love letter to Italy (and to the land itself). Created by regenerative farmers Charlie and Angelica Arnott, the Sicilian-inspired farmhouse blends timeless European elegance with grounded, sustainable living: start the day with sunrise yoga on the deck, lose an afternoon drifting between the sauna and the vegetable garden, then watch the sun set from a long outdoor table overlooking the hinterland.

Time Out tip: With a five night minimum stay, this isn’t one for a weekender.

Address: 451 Coopers Shoot Rd, Coopers Shoot NSW 2479

All-inclusive service is the drawcard at this sumptuous Blue Mountains estate – but not in a carpeted-cruiseship-buffet kind of way. Expansive lodges are hidden in the forest, meals are perfectly paired with local wine, and your in-room minibar is continually restocked (and complimentary). If you're feeling adventurous, you can book in for a scenic helicopter flight to see the sweeping mountain vistas from above, or an abseiling adventure down a waterfall. It's worth working up a sweat to earn a good few hours soaking in your freestanding bathtub overlooking the forest. 

Time Out tip: While you're in the Blue Mountains, it's worth exploring some of the incredible bushwalks in the area – these are our top picks.

Address: 70 Grandview Ln, Bowen Mountain NSW 2753

Crafted as an ode to the sun-soaked villages that line the Italian coast, Il Delfino is a Mediterranean-inspired boutique hotel bringing a barefoot luxury Italian experience to a former mid-century sailors’ inn. The five immaculately designed suites ache with Italian sophistication, opening up onto glittering views of the ocean. Designed by Yamba native (and former fashion designer) Sheree Commerford, this perfectly formed coastal stay as you’ll come to Cinque Terre without boarding a plane.

Time Out tip: If you’re on a tighter budget but still want a special stay in Yamba, check in at The Surf – a bright, playful property just along the cliffs, home to beautiful spacious bedrooms and a rooftop pool overlooking the ocean.

Address: 4 Ocean St, Yamba NSW 2464