In July we stayed at the Swissotel downtown. It was great location and an easy 15 minute stroll to the Rocks or the Opera House.
I really wanted to stay at the Sir Stamford but one of the nights in our five night block was booked.
Make sure to shop all the sites. There was a huge $$ differential. I ended up booking through Agoda as it was about $75 a night cheaper that Expedia, Travelocity, etc. And $200+ less than the hotel's website.
