Overview
Watsons Bay Boutique Hotel has undergone more than a few changes over its enduring history, with the property dating back to 1886, when it was known as the Palace Hotel. Now this luxe harbourside destination is ready to enter its next era, as it's set to undertake a $3-million renovation of its much-loved top and mid decks.
Set to launch in October 2025, Sydney-based interior design and spatial research studio Etic Design is leading the refresh. Bringing a little Hamptons elegance to Watsons Bay, expect a brand-new destination for weddings, celebrations and standout social moments. And for those who love the hotel's boutique accommodation and waterfront dining, like the legendary Beach Club and the upstairs Sunset Room, all will remain open throughout the renovation.
"We wanted every detail to blend the relaxed spirit of Sydney's coastal living with the elevated sophistication of the Hamptons," says Etic Design Director, Emilie Delalande. "The result is a space that feels fresh, refined, and grounded in its waterfront setting."
Drawing inspiration from the bay's natural palette, the new space will feature sun-bleached timbers, crisp whites, layered textures and subtle nautical touches. Meanwhile, expect high-end organic materials, custom detailing and generous open spaces to make the most of the hotel's stunning location, while bringing guests closer to the landscape. For regulars, the finished renovation will still feel like home, just with a renewed blend of luxury and comfort.
"Designing the Hamptons-style renovation for Watsons Bay Boutique Hotel was a collaborative and creative journey," explains Delalande. "We want every design element to reflect a refined yet relaxed atmosphere — one that seamlessly blends timeless Hamptons elegance with the laid-back spirit of Sydney's beachside living."
While the waterfront setting might not be so warm in winter, the Watsons Bay Boutique Hotel still makes for an enticing visit. The cosy Sunset Room's soothing fireplace makes it an ideal spot to soak up the views as you dine on a host of fresh winter specials, like a seaside Sunday roast decked out with all the trimmings. Midweek visits are also getting a boost, with Monday fish pie specials, Tuesday pizza and pinot sessions, and Wednesday burger and beer combos elevating your next waterfront feed.
Watsons Bay Boutique Hotel's top deck and mid deck are expected to reopen in October 2025. Head to the website for more information.