Watsons Bay Sydney, Australia
Renovated
2025
Price
$$
Rated for
Social Design ClassicOutside the door
Harbourfront beachside stalwart
Guests share breezy harbourfront decks with day-trippers, soaking up buzzing afternoon sessions and salty air right beside the ferry wharf.
What it’s good at
Remarkable
Waterfront picnic tables and expansive sunlit decks draw vibrant crowds for seafood platters and weekend DJ sessions.
Notable
Airy guest rooms feature Hamptons style baby blue timber panelling, plantation shutters, and nautical vintage artwork.
Notable
A beloved harbourfront institution where generations of Sydneysiders have gathered for weekend pub lunches and sunset drinks.
What they say
Michelin Selected
Michelin
Also in AFAR.
Rooms—there are only 32—are sun filled and yacht club inspired, fresh off a 2019 face-lift by Australian interior designer Sibella Court…
Somewhere quiet
Away from the crowds. Getting around takes intention.
Hop on the ferry to Circular Quay, swim at Camp Cove, or follow the coastal headland track up to Hornby Lighthouse.
The rooms
Sunlit rooms pair antique lamps and vintage maritime touches with plush beds, framing views across Robertson Park or the glistening harbour.
Bar
Beach Club
Striped umbrellas shade the open-air deck, where guests gather over freshly shucked oysters, king prawns, and chilled cocktails.
At the table
Tiered woven pendants hang in the indoor dining room, where folding windows open to let in harbour breezes.
How it began

Originally opened in 1886 as The Palace Hotel, this seaside landmark evolved from a local fishermen's pub into a relaxed coastal stay.
Good to know
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Watsons Bay Boutique Hotel
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Our shorthand
How we rate hotels.
The medals
Gold
Extremely rare. Sets the global standard.
Silver
Brilliant execution. And we’re picky.
Bronze
They did this well. You’ll notice.
Listed
A defining trait. Makes the hotel what it is.
The eight vibes
Design
Built around a vision. Even the door handles have a designer.
Luxe
Cared for at every turn. The bath is drawn before you ask.
Local
It could only be here. You wake up knowing where you are.
Social
Where the city goes out. The bar is full and the night is young.
Heritage
A building with a story. Once a palace, a monastery, a station.
Wellness
You leave feeling new. Rest, sweat, soak and sleep like a stone.
Classic
The city grew up with it. Same rituals, same regulars, same bar.
Resort
A world of its own. Something to do from breakfast to nightcap.
The scene
Lively
Where things happen: restaurants, shops, people.
Central
Well-located: walkable to some things, a short ride to more.
Quiet
Away from the crowds. Getting around takes intention.
Secluded
A place apart: the property is the destination.