Hill experienced first-hand the quality City possess on Tuesday night as his side were well beaten 3-1 at Oakwell - a victory which stretched Birmingham's unbeaten run to 15 games in all competitions.
And Hill saw enough to suggest they have what it takes to once again return to the top flight at the first time of asking.
He said: "They've got a great chance, it's getting down to the nitty-gritty now with respect to the top three or four. They've got that knowhow when it comes to the last five or six games of the season, they've all been there before so you can't argue that they are in there with a real good chance."
Blues boss Chris Hughton was impressed with the performance of his side and felt they were worthy winners.
He added: "I think it's an important win for us, I thought we deserved it over the 90 minutes but we had to defend very well at times. I think that was the basis that allowed us to take our chances and go on and win the game."