Harbour City Backpackers is excellently located just across the Domain from the City. It has good room sizes and great bathrooms. They have excellent kitchen facilities, a TV room, and video room. The Domain and Hide Park are located just across the road and there is easy access to the New South Wales Art Gallery and the Opera House. Circular Quay, the Rocks, and other inner city tourist destinations are within walking distance. The historic Woolloomooloo wharf and Andrew Boy Charlton outdoor salt water pool are fantastic locations to soak up a bit of Sydney sun. There are excellent surf and snow tours, and other tour operators pick up from this location.
This hostel is roomy compared to others in the inner city area and is reasonably priced. However, the staff were unfriendly and unhelpful after a problem with our room key -- we were treated extremely rudely by the girl on reception. This was our second stay -- the first time, they had excellent staff (however, most of their staff are travelers, so they do turn over). Good staff and management can make a great hostel.
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September 2004