New 7 storey Japanese-inspired capsule hotel with rooftop bar to open in Edinburgh next year

Situated just off the St Andrew Square and directly adjacent to Edinburgh’s iconic Princes Street, the new hotel will feature 242 beds over seven stories, and include a rooftop Japanese restaurant and bar with breathtaking views of Calton Hill, Edinburgh Castle, and the Firth of Forth.

Taking inspiration from Japan’s popular capsule hotel concept, the project is a collaboration between TARKA Hotels and award-winning architect Studio LBA. The project is expected to be completed by the summer of 2026.

TARKA Hotels promises to deliver an innovative alternative to traditional hotel accommodations. It is set to open next summer | TARKA Hotels

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.

“In our design approach, we have made a point of celebrating the building’s new rooftop addition. The façade is adorned with folded, origami-inspired metalwork – a bold reference to contemporary architectural aesthetics and Japanese culture. This intricate, yet elegant, feature serves as a bridge between the new and the old. Paying subtle homage to the building's original character while introducing a fresh, modern identity.”

The project involves retrofitting a vacant mixed-use building that previously held various uses, including a job centre, office space, and retail. Developers say initiative represents a bold step forward in transforming the numerous underused buildings in Scotland’s major cities into purposeful spaces for visitors.

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.”

Mr Scott added: “TARKA is built with urban travellers, tourists, and business guests in mind - prioritising affordability, central locations, and sleek, smart design.”