The topic says Sydney and Port Douglas so you get my views on both! When our house was full or if people didnt want to stay with us, we would recommend people to one of two places. The cost conscious we would recommend to Sullivans on Oxford St - a good three star hotel for about $125 a night. Ask for a room at the back overlooking the courtyard as the rooms fronting Oxford St can be quite noisy.
If people didnt mind paying a little more then we would suggest the Hughenden which is a boutique hotel on Queens St in Woollahra. It is in a great location, near where we used to live, about 3 miles out of the City centre but near a big park with some great shops, restaurants and galleries near by (have dinner at Bistro Moncur - a short stroll away). Dont know the current rates but would be surprised if it was much over $200 a night. The people we know who stayed there were always very impressed - its not flash and a bit faded round the edges but the location and the staff make up for this.
In Port Douglas try Beaches - not a hotel but serviced apartments. I'm sure all three places must have websites. The Hughended is part of the Flag group for marketing purposes but is def not a "chain" hotel.
Have a good time in God's own country!