I was going to suggest the Marriott which is only a few minute walk to Sydney Harbor - but after remembering the Intercontinental and the wonderful views that 12ride mentioned - I would second that suggestion!
Sydney is a great place to visit.
You can buy a 24 hour transit pass at the machines for $2.50 as a "pensioner". They will not let you do that at the ticket windows. The passes are for bus, ferries, and commuter trains.
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