You could always try the YHA, it has an excellent reputation. http://www.yha.com.au/hostels/nsw/sydney-surrounds/sydney-central-backpackers-hostel/ about 6 years ago
I usually stay at Mantra on Bond - $220 a night for the Executive Studio - It's fairly roomy, fairly consistant, and all rooms have a sofa bed (they ask you to pay extra if you are using it but they have never noticed if I've had a mate staying).
It's pretty much in the middle of things, reasonably close to everything.
- Jai about 6 years ago
Town Hall is a good area to start with good accessibility (train transfers etc.) to food in the area after business hours. Or Circular Quay / Wynyard end of town can be a very nice spot and just as well accessible.
Treat yourself to good hotels at a discount by booking at http://www.wotif.com/. You don't need to stay budget to stay within the budget. :) about 6 years agoAnswered by lekiki via Travellr.com
I also really love the Kirketon (above the best cocktail bar in Sydney). Rates from about $140 per night, boutique and really great.
I love the YHA's in Sydney, especially the one down on the harbour. It’s not as cheap as you’d think, but cheaper than the 5 star places around.
My accommodation bible has become www.agoda.com (although in Aus the prices are not as cheap as elsewhere). about 6 years ago