Although recently built, this collection of blue-and-white-painted, neo-classical-style buildings merges with the traditional Simiot mansions in the older parts of the pretty harbour town. Set among shady trees in maturing gardens about 150 m inland, accommodation is in cool, airy studios, each of which has a large kitchen and functional bathroom. All are traditionally furnished with wooden sofas and colourful striped rugs. It's quiet, friendly, and owner-managed by a local family who spent many years in Sydney, Australia (hence the name of the hotel). There is an outdoor bar, where cold drinks are served during the day, and the many harbour-side restaurants and bars are only a five-minute stroll away.