I stayed on Sheraton on the Park based on a recommendation that I read on Passport Magazine - devoted to Gay travelers.
It was amazing, great staff, and great location to the Gay District of Sydney as well as all areas of downtown Sydney and also the Metro being right there. The location was just right in walking distance of Royal Botanical Gardens, Opera House, Circular Quay - take a boat ride to other areas of Sydney. Also, they have an amazing breakfast buffet in the morning, so it was perfect which was included in the price of the hotel stay. Although it was a bit pricey for what they offered and more I was glad I stayed there.