The Four Points By Sheraton at 161 Sussex St. It's currently the largest hotel in Austrialia with over 600 rooms! It's also just a short walk from many attractions like the Pitt Street Mall, Queen Victoria Building, and Chinatown.

If you're looking to stay in Darling Harbour, I'd recommend The Ibis Hotel on 70 Murray Street Pyrmont. It's suitated right on the waterfront and makes it incredibly easy to visit all the casinos in the area without worrying about monster trek back to your room, or having a hail a cab.
Though, my personal favorite has to be The Star City Hotel & Apartments on 80 Pyrmont Street. It's situated in one of the mega casino complexes, so all you have to do is take an elevator trip to find something worthwhile to do! Get tired early? No problem! Another quick elevator ride back up, and you can relax and take a snooze. That, and it's absolutely gorgeous at night, but don't take my word for it. Here's a picture!

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