Often filled with wedding parties, or Watsons Bay locals who are renovating, this personable hotel is a great place to slip into the barefoot-millionaire vibe of this secluded Sydney neighbourhood. The ferry pulls up right outside and rooms are light and super-spacious with a lounge area and slick glassed-in en suites; many have balconies. Rates include breakfast, bikes and beach towels.
It's well worth the extra $30 for a harbour-facing room with a brilliant view, but expect some noise from the buzzing on-site Beach Club.