Situated just off St Andrew Square, TARKA said the facility draws inspiration from Japan’s popular capsule hotel concept but reimagines the model for a UK audience, prioritising “comfortable yet compact capsules with a contemporary feel”.

The project involves retrofitting a vacant mixed-use building that previously held various uses, including a job centre, office space, and retail.

The new hotel will feature 242 beds over seven stories, including a rooftop Japanese restaurant and bar with views of Calton Hill, Edinburgh Castle, and the Firth of Forth.

The project is led by architect and principal designer Studio LBA, in collaboration with project management and quantity surveying from Axiom Project Services Ltd, interior designer studio S+CO, Civil and structural engineer Narro, planning consultants Derek Scott Planning, M&E engineer Parrish Consultancy, fire engineer OFR Consultants, and acoustic engineer RMP. 

With construction already underway, completion is expected in Summer 2026.

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. Creating a draw for both locals and tourists alike.

“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.

“Nestled within the prestigious UNESCO World Heritage Site, the New Town Conservation Area, and the New Town Gardens Designed Landscape, the project’s location offers breathtaking views from the historic Calton Hill to the iconic Edinburgh Castle. Providing guests with a unique blend of tradition and modernity, where they can relax and indulge in an authentic Japanese dining experience amidst the charm of Edinburgh’s rich heritage.”

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. TARKA is built with urban travellers, tourists, and business guests in mind—prioritising affordability, central locations, and sleek, smart design.”