With a score of 87.78, Sydney was crowned Australia's top city destination in the Travel + Leisure 2026 World's Best Awards. Four of its hotels also made the 'best in region' list. Sydney's recognition as Australia's top city destination and its four hotels on the 'best in region' list position it as a leading choice for discerning travelers.
Sydney and its luxury hotels are celebrated as the world's best by Travel + Leisure readers. However, the survey determining these accolades offers participants a $10,000 cash prize, according to viceroyhotelsandresorts. This introduces a commercial incentive into a ranking presented as reader-driven.
Given the high reader participation and prestige, destinations like Sydney will likely leverage these accolades in marketing, driving luxury tourism. The survey's incentive structure remains a quiet, yet influential, factor in its widespread engagement.
1. Capella Hotels & Resorts
Best for: Global luxury travelers seeking consistent high standards.
Capella Hotels & Resorts was named Best Hotel Brand in the World by Destination NSW. Capella Hotels & Resorts being named Best Hotel Brand in the World reflects strong global appeal and a commitment to luxury. Its recognition as Best Hotel Brand in the World positions Capella as a benchmark for luxury brands globally, despite its limited footprint.
Strengths: Personalized service, exclusive locations, unique guest experiences. | Limitations: Limited properties, premium pricing. | Price: Ultra-luxury.
2. Capella Sydney
Best for: Discerning urban explorers looking for a premier city stay.
Capella Sydney was voted best hotel in Australia and New Zealand with a score of 96.89, according to Destination NSW. It is a top regional performer. Its high score suggests it quickly established itself as a leader, challenging more established luxury properties.











