Niamh and I stayed at the Rendezvous Stafford hotel in The Rocks. An ideal location for the Opera House and shopping, and the staff were very friendly and helpful. We booked a little apartment, like a minute townhouse - very cute and just right for us. Plenty to see, do and eat in The Rocks area, of course. Visited a night market and a day market: when it comes to markets, one is spoiled for choice. The area reminded me in subliminal ways of parts of London - it's now gentrified and a tourist attraction, but one could imagine it as a warren of old insanitary slum housing not so very long ago.
http://rendezvousstafford-sydney.h-rez.com/index.htm?lbl=ggl-en
