Capella Sydney was crowned the ‘best’ hotel in Australia - here’s what it was like to stay
I hadn't even made it to my room yet when I fell in love with Capella Sydney. There are few hotels in the world where just being within the building immediately fills you with a sense of calm.
This was one such place.
From the incredibly stunning architectural details, to the well-mannered and helpful staff, the sophisticated décor, and even the smell in the hallways, everything had me more than eager to see what an actual room might behold.
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Capella Sydney is the best hotel in Australia for 2025. Supplied/Capella
And I definitely wasn't disappointed. But more on that shortly.
It is honestly no surprise, after Capella Sydney was called out as one of the best hotels in the world for 2026, and the best hotel in Australia.
Capella Sydney placed at number 12 in 2025 and number 16 in 2026 on the list of The World’s 50 Best Hotels, which features properties from 22 destinations across six continents, ranking number one for the entire Oceania region.
Set within the meticulously restored Department of Education building, the hotel is just steps from Sydney Harbour and the Harbour Bridge. It first opened in March 2023.
There are only 192 guestrooms and suites, each with soaring ceilings, bespoke furnishings, and a curated collection of Australian artwork.
The service
I'll admit it took me a moment to locate exactly where the reception area was in the grand space of the ground floor, as it's not what you might have come to know from a standard hotel.
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Capella's grand spaces are a wow when you first walk in. Supplied/Capella
Staff were thankfully more than willing to actually escort me to exactly where I needed to go, for a very smooth check-in, followed by a welcome drink in The Living Room, an exclusive area for in-house guests.
The area serves light refreshments daily from 7am to 10pm. But I also came down at 4:30pm for a free cocktail as part of the hotel's "Afternoon swill".
The name links back to a wartime austerity measure, where laws were introduced forcing pubs to close at 6pm. This, of course, saw people flood in before closing time to get their beverage and merriment in. From this daily ritual, the term 'six o'clock swill' was coined.
My 'kombucha-style' welcome drink. Supplied/Kristine Tarbert
The room
When I walked through the door of my Premier Room on the fifth floor, the curtains opened to sunlight flooding in through the heritage window.
And the tone was set for the stay.
The room was huge to say the least, with a massive bed (complete with a proper doona cover! Which we know I hate when they don't do.)
We stayed in a Premier Room - King on the fifth floor. Supplied/Kristine Tarbert
Pillow selection was also great, but there were other options you could order via the in-room tablet. The tablet also came in handy when a last-minute Panadol purchase at 11pm was necessary.
The mini bar was stocked and non-alcoholic drinks were included (free coke zero!)
The bathroom was spacious, with a deep soaker tub complete with bath salts.
But the old window was definitely my favourite feature - and one you won't get if you're staying on some of the higher levels that offer floor-to-ceiling windows instead.
A huge bath with bath salts for a relaxing soak. Supplied/Kristine Tarbert
There were mirrors everywhere. Supplied/Kristine Tarbert
I did struggle a bit with the lighting system, particularly trying to find a low-light setting for the bathroom, without turning everything on and off multiple times. In fact, the light switch panels did bother me a bit at night (I like it pitch black), but I could cover them with a pillow or book.
One of the absolute stand outs of the room in a practicality sense - other hotels take note - was the large spot to put your suitcase.
No flimsy luggage rack that you have to turn every which way until your bag stays on, or having to find some floor space to dig around for socks without being in the way.
The ideal place to keep your suitcase. Supplied/Kristine Tarbert
The extras
The highlights kept coming when I went and explored the most beautiful indoor hotel pool I've seen. There was a vitality spa on one end, heated to perfection, with a neck massage option you won't want to skip.
Yoga mats are on hand in a zen area at the end, or there's an ample gym with plenty of equipment if you prefer to sweat.
The indoor pool is a beautiful space. Supplied/Capella
Then there's the Auriga Spa - a proper inner-city sanctuary - where I clocked in for a New Moon massage.
You get to choose your aroma oil and then settle in for a renewing and energising intuitive full-body massage, including meridian awakening to increase circulation and relieve physical and emotional tension.
Looking inward and reflecting was a theme throughout the hotel. You'll find a collection of intention cards called "transcend" in your room to help you take some time for yourself.
Capella has intricate design touches everywhere. Supplied/Capella
The verdict
It's clear my time at Capella is going to become the benchmark by which I judge any future hotel stays. There are many things I wish I could experience for the first time again.
If you've been balking at the price a little (because yes, a nightly rate of $900+ isn't anything to sneeze at), I would suggest asking for some Christmas money and booking a stay to kick off 2026 in style.
The writer stayed as a guest of Capella Sydney.
