Sydney hotel named among the world’s best city hotels

Sydney has finally shaken off its reputation for stuffy, beige lobbies and overpriced mini-bars. In a major win for the city’s hospitality scene, the 25hours Hotel The Olympia in Paddington has been crowned one of the world’s best city hotels. The recognition, reported by Time Out, confirms what many locals have suspected: the stretch of Oxford Street between the CBD and Centennial Park is undergoing a massive cultural vibe shift. This isn't just about a comfortable bed; it’s about a global validation of Sydney’s evolving urban aesthetic.

The 25hours Hotel occupies the bones of the heritage-listed West’s Olympia Theatre, a site that has seen everything from silent films to roller skating. The developers haven't just polished the floors; they’ve leaned into the building’s storied past with a design that feels distinctly ‘un-hotel.’ It’s a far cry from the glass towers of Barangaroo or the sandstone prestige of the northern end of town. Paddington is reclaiming its status as the city’s creative heart, offering visitors a slice of Sydney that feels lived-in and layered.

Location is everything in this ranking, and the hotel sits comfortably within strolling distance of some of the East’s best institutions. Whether you’re heading down to the SCG for the cricket or wandering through the terrace-lined backstreets for a schooner at The Lord Dudley, the area offers a pace of life that the CBD simply can’t match. For international travellers, being perched on the ridge of Paddo provides the perfect vantage point to explore the city without feeling trapped in a tourist bubble.

The hotel’s success also highlights a broader trend in Sydney property: the rise of the ‘lifestyle precinct.’ With a rooftop bar that captures those golden-hour views and a ground-floor presence that invites locals in rather than shutting them out, the venue acts as a community hub. It’s part of a wave of new developments, like the Revy in Pyrmont or the creative hubs in Surry Hills, that prioritise personality and heritage over cookie-cutter luxury. Our city is finally learning to celebrate its quirks.

While the global accolades are great for tourism, the real win is for the local economy. Having a world-class destination in Paddington brings foot traffic back to a retail strip that has faced its fair share of challenges over the last decade. As the light rail continues to hum down nearby Devonshire Street and the revitalisation of Oxford Street gathers pace, this ranking serves as a signal to deep-pocketed developers that Sydney’s creative fringe is where the real value lies. The era of the boring hotel room is officially over.

Looking ahead, this recognition is likely to spark a further flurry of boutique openings across the inner suburbs. With more high-end projects slated for Redfern and Chippendale, Sydney is positioning itself as a city that can compete with the likes of Berlin or London for cool, curated stays. For now, the 25hours Hotel stands as a benchmark for what happens when we stop trying to be every other global city and start leaning into our own unique heritage and sunshine. Expect the rooftop to be very crowded this weekend.