Construction has commenced on a new seven-story capsule hotel in Edinburgh, developed by TARKA Hotels in collaboration with Studio LBA. The hotel is located just off St. Andrew Square, adjacent to Princes Street.

TARKA Hotels aims to provide an innovative alternative to traditional hotel accommodation, drawing inspiration from Japanese capsule hotels while adapting the concept for a UK audience. The development will feature 242 beds and a rooftop Japanese restaurant and bar, offering views of Calton Hill, Edinburgh Castle, and the Firth of Forth. Completion is scheduled for Summer 2026.

The project involves the retrofitting of a vacant mixed-use building, previously used as a job centre, office space, and retail space. This initiative aims to repurpose underused urban buildings in Scotland's major cities.

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Lynsay Bell, Managing Director of Studio LBA, said: "TARKA's vision is to redefine hospitality with an innovative Japanese capsule offering, positioned in the heart of Edinburgh. This design-led project seeks to repurpose a redundant building, transforming it into an authentic and cutting-edge destination that not only invigorates the urban landscape but also creates employment opportunities."

The design incorporates a rooftop addition, with a façade featuring folded, origami-inspired metalwork, intended to blend contemporary architectural aesthetics with Japanese cultural references. The location within the New Town Conservation Area and the New Town Gardens Designed Landscape will offer guests views of Edinburgh's historic landmarks.

James Scott, founder of TARKA Hotels, said: "TARKA was born from our experiences staying in capsule hotels during visits to Japan—trips that sparked a real passion to bring this modern, affordable accommodation concept to the UK. We aim to redefine the traditional hostel by offering quiet, private pods that strike the perfect balance between the cost-efficiency of hostels and the comfort and design of modern hotels."

The project is being led by Studio LBA as Architect and Principal Designer, with collaboration from Axiom Project Services Ltd (Project Management and Quantity Surveying), Studio S+CO (Interior Designer), Narro (Civil and Structural Engineer), Derek Scott Planning (Planning Consultants), Parrish Consultancy (M&E Engineer), OFR Consultants (Fire Engineer), and RMP (Acoustic Engineer).