Like a well-aged shiraz suddenly given a crisp chill and a modern label, Sydney’s beloved Watsons Bay Hotel is getting a $3 million facelift—and just in time for the sweltering embrace of summer 2025. Yes, the grand old dame of beachside boozing and breezy overnight stays is being reborn—though, rest assured, she’ll be keeping her pearls and her coastal sass intact.

Perched like a sun-kissed crown on the eastern fringe of Sydney, Watsons Bay Hotel has been a local icon for the better part of two centuries. With nearly 190 years of salty breeze and champagne spray under its sash, this boutique beauty has played host to harbourside honeymoons, windswept weddings, long Sunday lunches, and more “just-one-more” evenings than anyone dares admit.

Now, the hotel is going all in on the next chapter of its storied history, unveiling a dramatic $3 million renovation of its top and mid decks. Slated for completion in October 2025, the refurbishment is being orchestrated by the design brains at Etic Design, and from early renderings, it’s shaping up to be the kind of space even Gatsby would’ve RSVP’d to.

A Makeover Worth Toasting

The top and mid-deck upgrades promise to be nothing short of transformative. Think crisp whites and soft textures that would make Martha’s Vineyard weep with envy, all set against the shimmering backdrop of Sydney Harbour. It’s a space that practically begs for a flute of rosé and a seafood platter the size of Bondi Beach.

Emilie Delalande, Director of Etic Design and the creative force behind the makeover, explains it best.

“We really had a shared vision — to elevate the hotel’s offering while honouring the iconic coastal charm that has made Watsons Bay so beloved,” she says. “It’s about creating a refined yet relaxed atmosphere that blends timeless Hamptons elegance with the laid-back spirit of Sydney beach life.”

Delalande notes that the design is inspired by the natural hues and textures of the bay itself—sun-bleached timbers, layered linens, subtle nautical accents, and organic materials that allow light and sea breezes to do the heavy lifting.

“We want the space to feel fresh and elevated but grounded in its surroundings,” she adds. “Returning guests should feel like they’re coming home—just with a little more sparkle.”

And while renovations are already in full swing, there’s good news for loyal patrons—the famous Beach Club, the Sunset Room (complete with roaring winter fireplaces), the classic Front Bar, and the boutique accommodation remain gloriously open.

Winter’s Chill, Summer’s Thrill

Although Watsons Bay Hotel is often synonymous with summer—barefoot bohemia, Aperol spritzes, and DJs spinning into twilight, it’s quietly brilliant in winter too. The Sunset Room, with its floor-to-ceiling views and crackling hearth, is the very definition of cosy chic.

To encourage chilly-season cheer, the hotel is serving up a seaside Sunday roast every week for just $35. Picture golden roast meats, all the trimmings, and more gravy than you’d politely request at your in-laws’ place. It’s hearty, heart-warming, and comes with a side of harbour view.

Mid-week isn’t neglected either. The hotel’s winter specials are a nostalgic nod to comfort food done right:

• Monday: Fish Pie Special – $34

• Tuesday: Pizza & Pinot – $35

• Wednesday: Burger & Beer Combo – $28

And if your idea of a balanced diet involves bubbles and banter, Watsons Bay Hotel delivers with its bottomless brunch every Saturday. For $99 per person, guests indulge in a generously shared menu and a two-hour beverage bonanza featuring Rameau d’Or Rosé, house wines, and beers. Splash out for $119 and you’ll find spritz cocktails joining the lineup.

Add live DJs and music every weekend, and it’s easy to see why the hotel remains a lighthouse for lovers of laid-back luxury, whether you’re a local or a larrikin just off the ferry.

Setting The Scene for Events in 2025

With the top and mid decks being reborn into a dazzling new event space, Watsons Bay Hotel is boldly reclaiming its place as the premier harbourside destination for weddings, galas, product launches, and those milestone birthdays that call for a backdrop of boats bobbing on the blue.

Whether you’re looking to tie the knot, toast a promotion, or raise a glass to making it through the week, Watsons’ upcoming event spaces will offer a front-row seat to the harbour’s beauty—and a masterclass in Sydney coastal style.

Let’s not forget, too, that Watsons Bay is no newcomer to the art of celebration. It’s been pulling pints, pouring prosecco, and providing beds with a view since before Federation. This renovation isn’t a revolution; it’s a tasteful evolution—a tip of the hat to tradition, with a perfectly shaken martini in hand.

Visit, Stay, Celebrate

If you haven’t been lately, it’s time to rediscover this classic harbourside haunt. If you have, then you already know: there’s magic in those sunsets, and the promise of even more to come.

Renovations may come and go, but Watsons Bay Hotel remains as timeless as the tides.

Discover more at Watsons Bay Hotel.

By Anne Keam

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