Whilst Potts Point is not too far from the party suburb of the Cross, this hotel is in very quiet an

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This hotel has a fantastic location, only moments from the Rocks. Some rooms have the view of the the Harbour bridge/Opera House which is just breathtaking. I have heard that breakfast can be expensive so see if you can get breakfast as part of your room rate.
Beautiful views (it's worth coming here just to visit the bar!) A good option is upgrading to a Horizon room as the views are the best from here. Great location but expect to pay top dollar at this one
If the view is not that important to you then I'd go for something central. You want something in the CBD - Central Business District. This just means right in the centre and not in the outskirts or suburbs of Sydney.
Try not to bring your car though as parking here is expensive at $50 per day. There are other car parks close by that charge $20 per day at weekends. You will struggle in the week to find something that cheap though.
The hotel is the other side of town to circular quay so would take you about 15 minutes if you walked leisurely. It is however very close to Darling Harbour and is just opposite the Queen Victoria Building which is a great place for shopping.
It is all the better for being just away from the main central area. It is set on the water, just where Russell Crowe has an amazing apartment. This is ultra chic and ultra modern so more for the funky amongst you. It is part of the converted wharf so the architecture and design combine old with very new.
The rooms are generally fairly small but watch out for bargains on their suites as these are large and fantastic. Go for a room on the Wharf side as the view is better, it's quieter and not as much blinding direct sunshine. The other side can be a bit noisy.
Some are in central Sydney and others are in the surrounding suburbs which means you get a bit more of a feel for the real Sydney. All have excellent buses to the centre for when you want to explore the city itself.
I have grouped these two together because they are owned by the same company. Their hotels continue to get good reviews in the press and amongst keen travellers. This is because the prices are usually very reasonable.
This hotel is in the thick of it - right in Kings Cross which is the party area of Sydney. It's very colourful sato travel center and vibrant but it's also where the prostitutes hang out and generally the area doesn't sleep until 6am. A great place if you are young as the rooms do offer good value for money in a perfect party part of the city.
If you fancy staying near the beach and want to be in all the action then this is a great boutique hotel. The bar and restaurant are always packed so this is a great place to stumble home from either the beach or the party scene in Bondi.
Whilst Potts Point is not too far from the party suburb of the Cross, this hotel is in very quiet and is close to some great restaurants and public transport. Prices tend to be more reasonable than those right in the centre of Sydney.
My personal favourite, sato travel center if you have the cash, is the Observatory Hotel. It is a little out of the way from the very centre of Sydney but its worth it. The rooms are large and the bathrooms very luxurious. The restaurant is also excellent and the locals come here for high tea on weekends or use the spa which has an excellent reputation throughout Sydney.
There is a new one just opened that is supposed sato travel center to be very good called Sydney Harbour YHA . You can have your own room right in the rocks for about $130. It has a rooftop area too which is pretty cool.