The Best Hostels in Sydney

By Jessica Wilkinson

Whether you want to wake up by the beach, party until dawn, enjoy sunrise yoga by the ocean, sleep in a space-age capsule (yep!), or have sundowners overlooking the famous Sydney Harbour, these hostels give you more than just a place to lay your head.

Sydney Harbour YHA

When talking about Sydney hostels, you can’t go past the Sydney Harbour YHA. Centrally located in the Rocks near Circular Quay (a great part of Sydney), it's got all the good stuff like your traditional dorm rooms, plus some fancier private rooms (all with their own bathrooms), a coffee bar, pool tables, and free tours so you can tick off some of your bucket list sights. But what really sets this hostel apart is the rooftop terrace. With sweeping views of Sydney Harbour – including the Sydney Opera House and Sydney Harbour Bridge – it’s the perfect spot for a sundowner with new friends.

Stoke Beach House

The perfect mix of laid-back beach vibes and party fun, Stoke Beach House is perfect for those wanting a fun seaside stay. The Beach House is located 100m (half mile) from Manly Beach and is all about offering travellers the best Aussie coastal experience. Take one of the free morning yoga classes before hitting the beach (the hostel offers free surfboards and snorkels), then head back for sundowners. And for those rare nights off, they even have a small cinema-style room for movie nights.

Pacific House Hostel

Created with the thinking that luxury and affordability make excellent bedfellows, Pacific House Hostel is housed in an iconic heritage-listed building with beautifully designed interiors (the walls are adorned with murals from Australian artist Tabitha Hope). Each room has either a city or park view, breakfast is included, and the communal spaces feel more like home than a hostel. Located in the unique harbourside district of Woolloomooloo, you’ll be an easy walk from the Botanic Gardens, city centre, art galleries, Opera House, and buzzing nightlife.

The Village Broadway

The Village Broadway has a reputation as being one of the best party hostels in Sydney. The perfect base for adventure seekers, this hostel is located above a buzzing pub with live music from different bands throughout the week. Walking distance to Central Station, you can spend your mornings exploring different parts of Sydney, followed by an afternoon lounging on the sunny rooftop terrace, before heading out for a cheap bite to eat and a night on the town.

Wake Up! Bondi Beach

Wake up to the sound of waves crashing on the famous Bondi Beach and you’ll see why Wake Up! Bondi Beach is so popular. Located just steps from the beach, in the heart of one of Sydney’s most iconic ocean-side suburbs, you’ll have all the perks of being by the water (think morning coffee at a buzzing local café, followed by a lazy day on the sand), while also being super close to the city. The hostel offers up all the usual perks – shared and private dorms, plus an epic rooftop with panoramic views of the ocean where they host yoga classes, Friday night BBQs, and wine and cheese nights.

The Space Q Capsule Hotel

This one is not your standard hostel. If you want something completely different and a little quirky, The Space Q Capsule Hotel delivers in spades. Located in the city centre (Chinatown, Darling Harbour, and Hyde Park are right on your doorstep), this hostel offers budget accommodation that breaks the mould. Instead of dorm rooms, each bed is in a private capsule giving it a super space-age feel – hence the name. Sleepover in a spaceship, anyone?