Sandstone Precinct / CBD

Capella Sydney

★★★★★

Capella Sydney opened in March 2023 and quickly became the most talked-about luxury hotel in the city. It occupies the former Department of Education building, a grand sandstone block designed in the early twentieth century by the New South Wales government architect George McRae, which fills an entire city block in the historic Sandstone Precinct of Bridge Street, between Circular Quay and the business district. The restoration took seven years and has been widely praised: the heritage facades, staircases and corridors have been preserved, while the interiors are warm, contemporary and full of Australian art, with a lobby that features works by the Aboriginal artist Judy Watson and others and a suspended installation of moving light sculptures by the Dutch studio DRIFT. There are 192 rooms and suites over nine levels, designed in a calm palette of timber, natural stone and soft colours inspired by the Australian landscape, with large marble bathrooms and deep tubs; some suites have views toward the harbour and the Botanic Garden. Dining is in the hands of the team behind Sydney's respected Bentley restaurant group, with Brasserie 1930, a lively all-day brasserie, and McRae Bar, named after the architect, for cocktails, while Aperture, the central lounge under a soaring glass roof, serves afternoon tea and drinks. The Auriga Spa on level six has treatment rooms and a 20-metre heated indoor pool, one of the most beautiful pools in the city. The location is excellent: Circular Quay, the Opera House, The Rocks and the Botanic Garden are all a few minutes away on foot, and the shops and restaurants of the city centre are on the doorstep.

Capella is a small, very upmarket hotel brand known for intensely personal service, and Sydney follows the model. Staff are numerous and attentive, check-in happens in the calm of the lounge rather than at a counter, and the hotel runs cultural programs and partnerships with local galleries and makers. It has won major industry awards since opening, and it has become a favourite meeting place for Sydney itself: Brasserie 1930 and the bar are busy with locals, which gives the public spaces a buzz unusual in a luxury hotel.

Choosing a room: the entry rooms are generous by city standards, and all share the same design language, so the main choice is between size and outlook. Rooms on the upper levels facing the harbour side, and the suites, have the best views, with glimpses of the water and the Botanic Garden; inner rooms overlook the light wells and are quieter. If the spa matters to you, book a package that includes treatments, as the pool and spa are one of the hotel's highlights.

Who it suits: couples, culture-minded travellers and anyone who values design and service above a full harbour view. The trade-offs: prices are at the top of the market, and while it is close to the harbour, this is a city hotel, not a waterfront one, so most rooms do not look at the Opera House. If the view is your priority, choose Park Hyatt; if heritage, art and polish are, Capella is the finest choice in Sydney right now.