From breezy beachside stays to spectacular sky-high towers, Sydney is home to some pretty incredible hotels. We all have our favourites, but one in particular – housed in the former government building at Circular Quay – continues to gain recognition on the global stage. Last year, Capella Sydney was included in prestigious travel brand AFAR’s list of the 31 best hotels in the world, and it’s now scored another accolade to add to its collection. The renowned travel media company Travel and Leisure has just announced its 2025 award winners, and Capella scored big – ranking as the best city hotel in Australia. And it turns out Capella isn’t the only Harbour City stay that’s worthy of a crown; five of the top ten city hotels in Australia for 2025 are right here in Sydney.
These are the top 10 city hotels in Australia for 2025:
- Capella, Sydney
- The Ritz-Carlton, Melbourne
- Park Hyatt Sydney
- The Tasman Hobart, Tasmania
- Sydney Harbour Marriott Hotel at Circular Quay
- W Melbourne
- Shangri-La Sydney
- Pier One Sydney Harbour
- COMO The Treasury, Perth
- W Brisbane
Shangri-La Sydney’s Chi, The Spa took the award for best hotel spa in Australia, with three other NSW hotel spas (Park Hyatt Sydney, Elements of Byron Resort and Spa, and The Day Spa by Chuan at The Langham) also ranking in the top ten. Shangri-La and Capella also featured on the list of the country’s five best hotel General Managers, placing first and fifth respectively.
These are the Time Out team's favourite spas in Sydney
In a notable coincidence, another big winner from NSW in this year’s awards shares a similar name to the winning city stay. Capella Lodge on Lord Howe Island (the remote NSW island that’s topping my personal travel hit list) ranked at number five on the list of this year’s best beach and island stays. (NB: This magical island stay isn’t part of the Capella brand, and the shared name likely had nothing to do with the success of the two NSW stays – or so we assume.)
You can read the full list of award-winning hotels over here.
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