Sleek, towering city hotels have their place, but personally, my preference is always for staying somewhere small: a place with heart and soul and décor that feels like it’s a person’s pride and joy. Sitting beside the water in a sun soaked corner of Sydney’s Eastern Suburbs, Watsons Bay Boutique Hotel is very much the latter. From the low, linen-draped sofa in the warmly lit dining room, you can watch ferries trace lines across the harbour and families set up picnics in the park. Nostalgic songs play through the speakers and groups of happy travellers gather on the downstairs terrace with a pizza and a pint in the sunshine. This is a hotel that you won’t want to leave – a comfy, easy-breezy beach house within walking distance of some of the city’s most beautiful beaches.
What is Watsons Bay Boutique Hotel like?
First up, it’s worth noting this beachside stalwart’s historical significance – it’s been serving up good times in the Harbour City for well over a century. In 1793, the pocket of land where the hotel now stands (on the traditional lands of the Cadigal people, a smaller clan within the broader Gadigal peoples of the Eora nation) was granted to Edward Laing, as one of the very first land grants in Australia. The first hotel was built on the site in 1886, initially named The Palace Hotel. Fifty-one years later, Watsons Bay Boutique Hotel was built, and in 2002 it underwent a major renovation to become the aspirational stay it is today.
For Sydneysiders, the hotel is best known for its huge, indoor–outdoor pub that occupies the ground floor – a popular spot for long summer lunches and rosé-fuelled sunset sessions. But behind the busy, beach club-style venue you’ll find a small, carefully curated boutique hotel – a Hamptons-style stay that makes the perfect base for travellers looking to spend a few days in Sydney living like a (remarkably wealthy) local.
Through the vintage maritime artworks and nautical trinkets displayed around the hotel, it nods to its past as a drinking hole for the city’s hard-working fishermen, but the vibe here now is elevated and refined.
What are the rooms like at Watsons Bay Boutique Hotel?
Spread across three levels, the rooms range in size from intimate king-sized rooms to airy suites – some offering views across the park, and some (including ours) with spectacular views across the harbour.
Ours was a Grand Harbour Suite, and if you can book room 210 for your stay, I implore you. Floor-to-ceiling windows stretched around the north and east sides of the room, bordered by sliding French-style shutters. Interior design firm Etic Design was tasked with the most recent renovation to the hotel’s rooms, and they took inspiration from the coastal homes of the Hamptons: coastal features that scream quiet luxury.
Maritime art hangs in clusters above vintage furniture, and the pillowy bed is framed by antique-style lamps and backed by baby-blue wooden panelling.
The most recent major renovation to the hotel was back in 2019, so some elements of the décor feel a little dated, but there are plans for new room upgrades in the works. And perhaps I’m being generous, but to me, that element of imperfection made the stay feel even more comfortable: like a sleepover in the sprawling, accidentally beautiful beach house of a wealthy family friend.
Which are the best restaurants at Watsons Bay Boutique Hotel?
Among some groups of locals, the venue is seen as something of a tourist trap – but swing by for brunch, lunch, or dinner and you’ll be reminded that some places become bucket-list items for a reason. With unbeatable sunset views, an exceptionally well-priced bottomless brunch menu, and easy access to the city (via ferry – the top-tier mode of public transport), it’s a delightful spot for a special occasion dinner with a big group of friends, or a casual, relatively affordable date night.
We visit on a Sunday evening towards the end of winter, and on the vast, harbour-facing terrace, groups of friends gather with tables of Spritzes and share plates as the sun sets behind the city. We order the tasty, tearable wood-fired flatbread, perfectly zesty tuna tartare and a few other plates to share and resist the temptation to order churros and another round of drinks to finish.
Breakfast is served in the dining room, a space that very much owns the beach house aesthetic – all wooden floorboards and rustic rattan cabinets lined with vintage vases. The continental buffet is relatively limited, but the hot options feature the classics that gained Aussie café culture its name: including a loaded bacon and egg roll and avo toast crowned with Persian fetta.
What is the service like at Watsons Bay Boutique Hotel?
The team are friendly and appropriately laid-back – a beachy attitude that fits the setting. We’re offered a late check-out without a fuss, and when we decide to spend the day working from the hotel’s vast, light-flooded dining room, we’re kept hydrated and looked after.
Is there a gym or pool at Watsons Bay Boutique Hotel?
There’s no gym or pool on site, but with some of the best walking and running routes on your doorstep, it would be a crime to get your steps in on a treadmill. During our stay, we swam in the harbour in front of the hotel and went on a morning run along the dramatic headland and up to Hornby Lighthouse. If you’ve got more time for leisure during your stay, it’s worth heading around the corner to Camp Cove or Shark Beach (my personal favourite beach in the city), and if you’re really keen to work out, you can head to nearby Bondi where you’ll be inundated with fitness studio options.
What’s the area like around Watsons Bay Boutique Hotel?
My travel companion refers to the Watsons Bay area as Barbieland, and she’s got a point. In this affluent coastal corner of the city, sun-soaked streets are lined with pastel-coloured vintage cars, and huge Barbie dream homes are shaded by towering palm trees. Aside from lying on the beach, swimming in the ocean, walking along the foreshore trail and drinking in the sunshine, there’s not too much to do in Watsons Bay itself, but a ferry ride will take you to the centre of the city in just 30 minutes.
Why you should you book a stay at Watsons Bay Boutique Hotel
For a laid-back beach break with easy access to the city, look no further.
Address: 10 Marine Parade, Watsons Bay NSW 2030
Price per night: From $300 per night.
Closest transport link: The ferry wharf opposite the hotel connects you to Circular Quay in 30 minutes.
Book now: Over here.
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