As other travelers have noted, the location of the Russell just can't be beat. Step outside and you're within an easy walk to Circular Quay, harbor cruises, the Opera House, Harbor Bridge, the Museum of Contemporary Art, the Hop-on-Hop-Off bus stop, and lots of cafes, shops and restaurants on the cobblestone streets..
In addition, the Russell is one of the few accommodations in the city center that is not furnished in stark, minimalist stainless-steel-and-glass decor. The Russell building is more than 100 years old. The result is a creaky, charming, hospitable bed and breakfast. with lots of character, winding hallways and staircases, random balconies, and a gracious, friendly staff.
There's free Internet access in the Russell's reception area, and a substantial breakfast (eggs, thick toast, juice, yogurt, cereal, coffee) is included in the room price and served in a cozy downstairs breakfast room. Sydney is a money pit --- main courses at ordinary little cafes are from $25 - $30 --- so the hearty Russell breakfast is a good bargain.
For us, an en suite room was well worth the additional charge. Ours had a small kitchette with all the makings for morning tea and Australia's great pressed coffee.
One small caveat: If you have a room on George Street, you can count on being awakened at 6:00 a.m. by the mournful horns of ships in the nearby harbor.
Tip: Rather than trying to organize a shuttle to and from the arport (shared with a dozen other passengers in a seemingly endless drop-off or pick-up process at locations all over Sydney) or hiring a taxi (pricey and likely to be stalled in traffic with the meter ticking)
take the train into town for about the same price as the shuttle. Follow the large TRAIN signs in the airport to the stations immediately beneath both domestic and international terminals and get the train that whisks you non-stop to Circular Quay in about 15-20 minutes. It's a short scenic walk from Circular Quay along the wharf area to the Russell --- quick, convenient, and a nice introduction to the heart of Sydney.
Tip: the pass for the Hop-on-Hop-Off tour bus is good for 24 hours. So if you time it right, you can use the bus two days in a row for a single (about $30) fare --- one afternoon for the City-wide tour of Sydney, and the next morning on the same pass
for Bondi Beach and surrounding areas.
Right around the corner from the Russell is a great little patisserie called the Renaissance. Ignore the brusque impatience of the French woman who runs the place(don't even bother trying to charm her with "Bonjour Madame"), and enjoy exquisite
croissants, pastries and lattes in a cozy outdoor patio in the back of the cafe.
Across the same side street as the patisserie, slightly up the hill, is an authentic German restaurant (can't remember the name but easily recognizable by the beer flags on the outdoor patio in front). There's a large selection of beer on tap, the food is the real thing, and indoor seating is at long communal tables. (At least in October) the waittresses wear dirndl skirts and peasant blouses and musicians play live oom-pah-pah music all night.
There is a great takeout fish-and-chips stand on the Circular Quay just opposite Pier #3.
The mild white fish is fresh and flaky, cooked to order in a crisp light batter. (The little square plastic tubs of ketchup or tartar sauce that are free/throwaways in the U.S. cost .40 each!) There's no seating, but there are benches at Pier #1 overlooking the Bridge and the water where you can enjoy the food and the view.