Inside inner-city Sydney's coolest and cosiest new hotel

A number of world-renowned hospitality groups, from Capella to W, are opening hotels in the Harbour City this year, but none of them have the cool cachet of Ace, which threw open the doors of its first Australian outpost in Sydney's Surry Hills last year. Since the company launched in Seattle in 1999 it has become known for its cutting-edge style and a philosophy of engaging with the local community as well as with overseas visitors.

Wentworth Avenue near Central Station, where Surry Hills meets the city, is just the right neighbourhood for Ace's blend of urban edge. Whether you want to eat at in-demand restaurants such as Chin Chin and Poly, admire the art at the acclaimed White Rabbit Gallery or browse the boutiques and bars of Crown Street, it is all within walking distance from here.

Hip designers Flack Studio have taken their inspiration from the site's history - among other things, it was the location of the oldest-known kiln in Sydney - to create richly textured interiors, which feature brick and moulded concrete along with a retro palette of ochres, mustards and forest green. The vibe in both the rooms and the public areas is cosy rather than glam.

Rooms are spread across the original building and the high-rise addition, which means they come in a range of configurations. It takes me a moment to find my room - the room numbers are so subtle they almost disappear - but once I'm inside it all feels very homey. The retro vibe stretches to the wool blankets on the bed and the Rega turntable. Don't feel anxious about spinning some vinyl discs or strumming a few chords on the D'Angelico guitar - both of which come with the rooms, which have the same insulation that is used in recording studios. And pet-lovers take note: for an extra fee the Ace is happy for you to bring your canine companion with you.

The hotel's rooftop restaurant, Kiln, has won Sydneysiders' hearts with its wood-fired grill - you can spot the pile of ironbark and fruitwoods behind reception - and views right across the city centre. Chef Mitch Orr has built a devoted following by serving up meals that sing with seasonal flavours, from fish teamed with peach and tomato jelly to marron jazzed up with desert lime. For a more laidback dining experience, head to the ground-floor Loam restaurant where the menu offers comfort food with the flavour dialled up to 11, from a perfect roast chicken to broccoli with lashings of maple syrup and bacon.

Locals have embraced the lobby bar, which is bustling even on a Tuesday night. The table near us has some impressive-looking cocktails but we are more drawn to the wine list, put together by natural wine specialist Mike Bennie of P&V Merchants. Alternatively you could also head to the green-tiled Good Chemistry, which opens onto the laneway behind the hotel, and which segues effortlessly from cafe by day to wine bar at night. No matter the hour you will find the seats at the communal tables filled by a creative Surry Hills crowd.

Engaging with artists is part of the Ace DNA and the hotel's art collection - which includes a glazed ceramic front desk by James Lemon and a large-format piece made from upcycled clothing by Julia Gutman- is outstanding. Indigenous artists are highlighted, including Tony Davidson's Aboriginalia ashtrays.

Ute Junker was a guest of Ace Hotel