When I was booking accommodations for a few days' stay in Sydney, the size of the city seemed overwhelming, so I had a few criteria: it needed to be within walking distance of the attractions I was interested in seeing (Darling Harbor, Opera House etc), preferably handy to public transportation, and it needed to be affordable. I was hoping to stay in a charming local hotel or B&B, but Sydney, it seemed, was practically sold out that weekend - and if it wasn't sold out, it was very expensive, even at a time when the US$ was very strong against the AU$.
I finally managed a room at the Four Points Sheraton on Darling Harbor. At the time, I did not realize that the Four Points is Australia's largest hotel, boasting 631 rooms; I was comfortable with the hotel brand and the location was absolutely superb, right on the east side of Darling Harbor, adjacent to the business/shopping districts, and directly on the Sydney Explorer bus line.
The Sydney Four Points is absolutely superb. It clearly caters to business travellers, but is a welcoming home to tourists as well. The staff is nothing less of absolutely gracious, friendly and helpful - whether it is giving you directions to a nearby location, helping you fathom the local transportation system, or helping you book dinner reservations or a local wine tour. From the minute you walk into the sumptuous, serene lobby, to your rooms, to the gift shops downstairs, you are surrounded by luxury and feel welcomed every moment of the day.
While I was not fortunate enough to have a room that overlooked Darling Harbor, my room was very large and well-appointed, with a magnificent king-size bed that I could have spent all day in. Alas, there was a city to explore, but I could not have asked for more out of my accommodations.
One evening I dined at the in-house Corn Exchange Restaurant, which had an amazing buffet for about AU$28 (at the time I was there, ~US$19), where they had all kinds of local specialties, totally delicious, I would recommend the restaurant even if you are not staying in the hotel.
On a side note, I almost never use a concierge, but, feeling a bit overwhelmed by Sydney, I made repeated forays to the concierge desk - and they were extremely helpful, never making me feel pressured about suggestions, and all the suggestions they made being totally on the mark. Four Points concierge staff made it so much easier for me to find my way around Sydney, as well as helping me confirm my booking on a Hunter Valley wine tour.
If you are looking for a remarkably warm welcome to Sydney, in a luxurious setting, Four Seasons is a great selection.