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The Sydney Harbour YHA offers basic, clean, and new (it opened in 2010) rooms at a very reasonable price for this sought-after part of the city’s prime tourist district. Some rooms have harbor views (if you crane your neck). All are air-conditioned, and even the dorms have private bathrooms. There are also some thoughtful design features, including an electric socket inside each of the dorm-room lockers, so you can securely charge your iPod/laptop/camera. It has a very large common area, and the roof terrace is an excellent place to hang out, particularly because of the fabulous views of the Opera House and the Sydney Harbour Bridge. Note: You do have to lug your luggage up a lot of steps to get to the building. There are also a couple of other inner-city YHA hostels worth considering