Best hotels in Sydney?

Well I am going Down Under, meaning flying to Sidney Australia! This for sure will be long way from home, but I am exciting. I have no idea which hotel to choose, being completely clueless. Apart Sydney opera, I know nothing about this town. So I go to the usual way of thinking pick THE BEST! Share your opinion which hotel you will place into this group.

You could follow the fame and pick Four Seasons, Park Hyatt, Sheraton and InterContinental, and you could not pick wrong, dont you agree? But for some reason just known to me I will suggest The Observatory Hotel, it is orient-express hotel on the perfect location where everything is in your reach, even your Opera House as the only location that you recognize. So I think, picking this one there is no way that you could get lost on a way back to hotel from your late night - town cruising.