As you know the Gazebo was situated in Kings Cross and there are around 6 others in the vicinity , [ see
http://www.cheaperthanhotels.com.au/Aust… ]
These are not really "luxury" - maybe 3 /4 star .
The Bayview Boulevard in William Street is nearby , and has recently refurbished *some* of it's rooms
http://www.cheaperthanhotels.com.au/Aust… , but there are mixed reports.
If you want luxury , stay in one of the 5 star hotels shown on this site.
http://www.cheaperthanhotels.com.au/Aust… and maybe move area. Darling Harbour , The Rocks , these are all exciting destinations and frankly safer than Kings Cross.
Another site where you can compare deals in Sydney on a number of other websites is at
http://www.equavista.com.au
Hope you find what you need.