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Observatory is bordered by Mowbray to the south and Salt River to the north, and lies on the Cape Town-Simon's Town rail route. Fondly known as 'Obs', its proximity to the University of Cape Town (UCT) and its Medical School, in particular, make it popular among students and lecturers. Like most student neighbourhoods, it is considered liberal, racially integrated and somewhat alternative, with 'new age' style shops, a monthly Holistic Fair and the annual Obz Festival. Restaurants and bars feature along central Main Road and its surrounds, while nearby are the Hartleyvale soccer and hockey stadium and the world famous Groote Schuur Hospital.