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A private dining room is the step between booking a long table in a restaurant and hiring a whole function space. In the city they tend to sit inside heritage buildings, from convict-built stores on Salamanca Place to Art Deco rooms off Macquarie Street, so the room itself does much of the decorating.
What separates one private room from another:
For a bigger guest list, compare function venues across the city, or plan a birthday or anniversary dinner around a private room.

It varies widely, from small rooms for a single long table to upstairs rooms that seat 40 or more. Ask for the seated number, not the standing one.
Some rooms set one, others price by a set menu, such as $60 per person at a Salamanca grill. Ask whether a room fee applies on top.
Usually yes in a closed room, which is a main reason to book one. Check whether a microphone is available for a larger table.
Very much, as an indoor room avoids the cold, wind and changeable weather that can spoil an outdoor table. Ask how the room is heated when you book.
Stairs and access, noise from the main restaurant, and whether decorations can go on old walls. Ask to see the room before you confirm.