2 Best Hotels in Inner City and the Eastern Suburbs, Sydney

Set over three adjoining Victorian terraces on a tree-lined street close to Kings Cross and Potts Points, Spicers Potts Point combines heritage charm with modern elegance for a cool and calming retreat right in the middle of things. Bleached oak floors, marble fireplaces, and neutral creams and grays accented with artwork of submerged swimmers combine with a hidden courtyard garden and a light-filled breakfast room to create a chic home-away-from-home feel.

In its character as well as its dimensions, this friendly B&B on a quiet part of a bar- and club-lined street is reminiscent of a European pensione. Simple, tastefully outfitted rooms come with high-quality beds and linens, as well as wooden blinds over the windows. Access to the four floors of rooms is via a small staircase, and there is no elevator. There are single, double and superior rooms, the latter suitable for a family. Despite its proximity to the heart of Kings Cross, the hotel has a relaxed, serene atmosphere. There's a two-night minimum stay; book online for cheaper rates.