Small is superb at this new boutique hotel in Sydney

Foodies and dog lovers are in for a treat at this beautiful inner-city hotel.

From busy Elizabeth Street in Sydney's Surry Hills, the entry to 202 Elizabeth is unobtrusive and stepping inside to the intimate foyer there is a sense of this being a real "boutique" hotel. With just 38 rooms over six levels, the site's tight space led to a creative solution in construction. The hotel was built from the inside out using cross-laminated timber, most of which was built offsite and then lifted into place by cranes. Today that exposed timber is a feature of the interiors and on view throughout the property.

202 Elizabeth sits on the border of Sydney's CBD and one of its hippest neighbourhoods, Surry Hills. Wander its streets lined with Sydney terrace houses and some of the city's most in-demand restaurants (hello Pellegrino 2000, Firedoor and Amorica Grande Brasserie) along with great boutiques on nearby Crown Street. It's also within walking distance of the CBD and its theatres, nightlife and shopping.

Relaxed, cool and welcoming. The lobby is an eclectic and stylish affair - not to mention an interiors addict's dream - with its art gallery wall by interior stylist Lisa Madigan, chic Sarah Ellison cream arm chairs and olive-green leather banquette. The other main common space, a rooftop deck with designer furniture and views across the rooftops, meanwhile, is a perfect place to chill.

With pup in tow at this dog-friendly hotel, our room, The William - which comes complete with king bed and wide balcony - was a great fit. There was also a snug dog bed, with toys and designer dog bowl for all your pup's meals and treats. Like all of the 38 rooms at 202 Elizabeth, they have nailed the design brief of "playful yet sophisticated". This includes bold wallpaper on feature walls, rugs scattered across carpeted floors and linen bedding. The bathroom, while compact, also has a wow factor with its art-deco inspired terrazzo and tiled surrounds.

It's all about what is just outside the door - some of Sydney's hottest restaurants are just a stroll away, which alone makes it worth staying at 202 Elizabeth. But a word of warning, book ahead as these eateries are very popular and walk-ins are rare. The neighbourhood also has a great selection of cafes including Bills on Crown Street. Inside 202 Elizabeth, a continental breakfast of pastries, yoghurt and coffee is included in room rates, and a ground-floor wine bar is for guests only.

This hotel offers an opportunity to make the inner-city your 'hood. Waking up in the morning and stepping out on the deck, there is a feeling that this could be your own swish inner-city pad. Likewise the rooftop deck is the perfect spot to take in the sunset and a tasty drink. Step outside the hotel and you have one of the most eclectic neighbourhoods around. Pop into the city's first negroni bar for pre-dinner drinks, Bar Conte; take a gin workshop at Four Pillars drink lab; or master the art of candle making at Provider Store, which specialises in slow-made Japanese homewares.

Dogs are very welcome in this hotel, and from our stay it was obvious that many have taken to boutique hotel life very well. Easy chatter occurred between dog owners as our canine companions also took the time to get to know each other in the foyer. Having a verandah off our room made sharing with our dog a more comfortable experience. And the inclusion of some fun new dog toys on arrival was much appreciated.

Where: 202 Elizabeth, 202-210 Elizabeth Street, Surry Hills

How much: Rooms start from about $289 a night

Explore more: 202elizabeth.com.au

Read more on Explore:

The writer was a guest of 202 Elizabeth.