[category]
[title]
In a city with so many next-level stays – from boutique beachside gems to celeb-approved palaces overlooking the harbour – it’s a rare thing for one hotel to shine notably brighter than the rest. But according to the hotel experts behind the annual, globally renowned guide to the world’s best hotels, Sydney has just such a property – and it goes by the name Capella. Housed in a grand old sandstone building in the heart of Circular Quay, the 192-room luxury hotel opened in 2023 and this week was named Australia’s top hotel for the second year running by The World’s 50 Best Hotels.
Revealed at an awards ceremony in Paris this week, the fourth edition of the global ranking celebrates 50 hotels across six continents, with the list compiled from votes by more than 800 anonymous experts. The voting panel, known as The 50 Best Hotels Academy, includes hoteliers, travel journalists, educators and experienced luxury travellers. The only Australian hotel to make the list, Capella Sydney hotel has landed at No. 16, taking out the title of Best Hotel in Oceania in the process. It’s another major accolade for Capella, which has previously been recognised as Sydney’s finest by Travel + Leisure, Gourmet Traveller Hotel Guide and the 2025 edition of The World’s 50 Best (as well as by our very own Editor in Chief Alice Ellis).
Housed inside the beautifully restored former Department of Education building in Sydney’s Sandstone Precinct, the 192-room hotel is a blend of heritage architecture, chic modern design and an impressive collection of more than 1,400 artworks. The building was originally designed by NSW Government Architect George McRae, and these days its grand interiors are home to everything from the 20-metre heated pool and Auriga Spa to the opulent Brasserie 1930, NYC-coded McRae Bar and afternoon tea fave Aperture.
Since opening, the hotel has seriously cemented its title as one of Sydney’s more high-profile luxury stays – I’m yet to stay, but every report I hear about the hotel is note-perfect.
“Since opening in 2023, our goal has always been to create a hotel that feels connected to Sydney, while staying true to the thoughtful and intuitive hospitality that is at the heart of Capella,” Marc von Arnim, General Manager of Capella Sydney explains. By all reports, they’re hitting the mark.
The hotel’s No. 16 ranking places it among some of the most celebrated hotels on the planet, while its Oceania win puts Sydney firmly on the global luxury travel map.
You can check out the full list of the world’s 50 best (and update your hotel bucket list accordingly) over here.
Stay in the loop: sign up for our free Time Out Sydney newsletter for more news, travel inspo and activity ideas, straight to your inbox.