There's more to a travel bargain than price. In the case of city hotels, the best are a balance of style, value, and location. In 15 cities across the world, our editors prove the point with stellar finds. At a time when the buck is on a roller-coaster, these are very sure bets...

Sydneysiders don't live in the business district, and why should you when the city is surrounded by beautiful harbor suburbs? Certainly the big hotels have all staked their turf in the city, but in truth, you'll find more fun and more interesting accommodations ten minutes down the road. Potts Point claims the highest population density in Australia, yet it is a charming and lively place to stay. Leafy streets, smart restaurants, and casual cafes make this suburb an ideal destination, and yet it is only a 15-minute walk from the heart of Sydney. Best of all, you can stroll along the harbor foreshore of Woolloomooloo, through the wonderful Botanical Gardens, and find yourself staring up at the Sydney Harbour Bridge and Opera House at Circular Quay. At 8 Challis Avenue, Simpsons of Potts Point began life in 1892 as a grand mansion, and its glory has been recaptured with an imaginative restoration—grand halls, stained-glass windows, 14 spacious guest rooms (61-2-9356-2199; simpsonspottspoint.com.au; doubles from $120; w). Across the road, the cafe at the Maisonette Hotel is first-rate, with Parisian style and a sunny outlook. The hotel's 21 rooms are refurbished, basic, and fantastically priced, and if you stay six nights, the seventh is free (61-2-9357-3878; maisonettehotel@bigpond.com; doubles from $58). The DeVere Hotel is a former apartment block on Macleay Street, one of Sydney's most fashionable avenues (61-2-9358-1211; devere.com.au; doubles from $90).

On the southern side of Kings Cross, the trendsetting suburb of Darlinghurst sports two of the city's best small, contemporary hotels. The Medusa is a grand late-nineteenth-century Victorian residence with 18 luxurious rooms that include kitchenettes (61-2-9331-1000; medusa.com.au; doubles from $175). The 40-room Kirketon is equally stylish (61-2-9332-2011; kirketon.com.au; doubles from $178). Both have superior linens and stereos, and as a bonus, some of the city's most popular cafes and restaurants are a block away.

If you must stay in Sydney, The Blacket is a fashionable bargain in a historic 1850s bank at the corner of King and George streets (61-2-9279-3030; theblacket.com; doubles from $115).

Sources: Start with sydney.com.au, which has last-minute hotel bargains, tourism.nsw.gov.au, and travelaustralia.com.au, where hotels are sorted by location.