Construction has started on TARKA Edinburgh, a new capsule hotel situated just off St Andrew Square and directly adjacent to the city’s Princes Street.

Drawing inspiration from Japan’s popular capsule hotel concept, the project is being developed by TARKA Hotels in partnership with architect Studio LBA.

The project includes the refurbishment of a vacant mixed-use building that was a former job centre.

Expected to be completed by mid-2026, the new hotel will feature 242 beds spread across seven storeys.

Upon completion, the hotel will also house a rooftop Japanese restaurant and bar with views of Calton Hill, Edinburgh Castle, and the Firth of Forth.

Studio LBA managing director Lynsay Bell 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.”

Axiom Project Services is providing project management and quantity surveying services for the project.

Other parties taking part in the project include planning consultants Derek Scott Planning, interior designer studio S+CO, civil and structural engineer Narro, fire engineer OFR Consultants, M&E engineer Parrish Consultancy, and acoustic engineer RMP.