I actually don't like staying in The Rocks area. I prefer where the Westin is located. I'm from Sydney originally. Shame there isn't a really nice more central hotel - but the harbour is without a doubt the main attraction for visitors and the Park Hyatt is the best hotel for the harbour and the best hotel in Sydney IMO.

I spend most of my time when visiting in Paddington / Woollahra / Double Bay / Bronte / Tamarama anyway (the latter two are both superb beaches - much, much nicer than Bondi).

Sydney needs a Mollies (Auckland) located in Woollahra.