Booked this room direct with the hotel. Was offered a rate including breakfast, gave credit card details to secure the booking and was given a confirmation number...
Arrived late to the hotel due to flight delays, and given a smoking room which had a most unpleasant odour. Given that it was alread 11pm didn't have the energy to ask for another room... although in retrospect should have.
Went to breakfast and told it was not included!! There was further problems booking out also.
So... would recommend you get a written confirmation of your booking. I guess the problem with booking on the phone is that you don't have those little boxes to tick for non-smoking room!
Recommend you check all details thoroughly....
Otherwise the hotel was fine but won't be returning.

On a recent 5 week holiday in Australia we stayed at the Grace Hotel It is right in the centre of the CBD and about 15 mins from Circular Quay and in easy rach of Darling harbour etc. Overall it is a business rather than a tourist hotel, comfortable but not luxurious. Rooms of a good size but sometimes odd shapes as the building was a former office building adapted to new use. Beds comfortable. Rooms clean and well furished.Can be noisy as it is on busy intersection and seems to be used by coach groups.so choose a room at the back.Breakfast not a good point - in fact you get better value in the QVB nearby. If you want to be at the centre of the action near the ferries etc then choose a hotel nearer the waterfront - but the cost will be higher there than at the Grace. OVERALL value for money.

Wonderful hotel, very helpful staff.
Rooms are very very nice and it also has a pool / jacuzzi / gym free to use as you want. Also very good location - just a 5 minute walk to Darling Harbour and the Aquarium etc. Very nice breakfast...and it was free as we stayed more than 3 nights.
What more could you want!

Our first impressions of the Grace were not encouraging. Arriving at 10:30p.m. or so, we had to struggle from our car into the lobby with our luggage , with no assistance from any hotel staff.
The reception area itself is large and 'cold' in appearance, although in keeping with the art-deco style of the hotel.
Our room was clean and unremarkable, and although on the 9th floor, as previous reviewers have mentioned, the traffic noise was clearly audible.
Where the hotel 'wins' is its' location. The Rocks, Sydney Opera House, CBD, Darling Harbour are all within 15 minutes stroll - no need for any taxis. Also there are numerous cafes close to the hotel for breakfast [at least during weekdays]
If we ever return to Sydney we would not rule out returning to The Grace, but would probably look at other hotel option first.