Sydney’s luxury hotel scene just earned a major international nod, with Capella Sydney ranked among the World’s 50 Best Hotels for 2025, taking out 12th place and the top spot in Australia and the wider Oceania region. The hotel was lauded as a “spacious sanctuary of minimalism, art and Australian heritage”. Located a short walk from Circular Quay in the heart of the CBD, Capella Sydney is housed within the heritage-listed Department of Education building, a stunning 1915 sandstone landmark reimagined with sleek modern touches and luxe offerings. The result is a striking blend of old and new with 192 spacious rooms and suites with high ceilings, timber floors, and authentic Australian artwork, alongside breezy communal spaces filled with light and local design.
World’s 50 Best Hotels for 2025
This is yet another feather in the cap for the two-year-old property, which was also named Australia’s Best City Hotel by Travel + Leisure and ranked second in the country in Condé Nast Traveller’s Readers’ Choice Awards. The World’s 50 Best list is a compilation of votes from more than 800 hoteliers, journalists, and luxury travel experts and recognises the top experiences in global hospitality.
Aside from excellent service and elegant decor, the hotel also boasts a chic 20-metre indoor pool, the Auriga Spa, a wellness centre, and several standout dining spots, including Brasserie 1930, Aperture, and the McRae Bar, with a focus on local produce and ingredients.
Capella Sydney wasn’t the only Australian hotel to make the top 50 on the list. Marking its third consecutive appearance was The Calile Hotel in Brisbane, which placed 34th, known for its thoughtfully curated design and resort-style vibe. Meanwhile, Southern Ocean Lodge on Kangaroo Island featured on the extended 51–100 list, ranking 69th overall. Check out the full list and start planning your staycation here.