The hotel is officially in the CBD and the immediate streets can seem a littlw quiet at a weekend, but after a 10 - 15 mins walk you can be in the main shopping areas or Darling Harbour or Circular Quay. All in different directions - so it's pretty central!
Staff very friendly and the facilities are excellent in the hotel, although if you want wireless internet in your room, you would have to get a top few floor room.
Would definitely stay there again if visiting Sydney.
Not so sure if it would be a good hotel for families though - certainly didn't see any children whilst staying their.