New capsule hotel brand Cōsa Capsule Hotels is launching in London with plans to open 15 sites by 2030, Property Week can exclusively reveal.
An artist’s impression of a Cōsa Capsule Hotel
Founders PingPing Han and George Cohen told Property Week that the company was in talks over three potential sites in the capital and aims to open its first hotel in the next 12 months.
It is seeking buildings in prime London locations ranging in size from 8,000 sq ft to 50,000 sq ft for hotels under management contracts and joint venture structures.
Cōsa aims to launch 15 sites across the UK by 2030 and is considering openings in other cities including Bristol, Birmingham, Manchester, Liverpool and Glasgow.
“London is in a clear situation of undersupply and over-demand when it comes to affordable accommodation,” said Han, who launched the venture after scaling up KINN, one of Singapore’s largest capsule operators.
Han, whose career in hospitality includes stints at Shangri-La Singapore, Taj Group in India and Marriott, added: “In London, some of the market trends that we are observing show a similar market momentum as there was in Singapore two or three years ago.
“Macro-instability is here to stay and inflation continues to rise. Together, these form optimal tailwinds for an affordable and scalable product like ours.”
PingPing Han, Cōsa Capsule Hotels
The brand is looking for under-used buildings such as vacant offices, retail, light industrial, cultural or civic buildings to convert into capsule hotels.
“We want to help landlords who have buildings sitting vacant where we can provide a use that delivers two to three times higher revenue per square metre compared with traditional hotel formats and approximately 66% lower fit-out costs, substantially lowering initial capital expenditure,” said Cohen.
Capsule hotels have taken Asia by storm and are making inroads into western markets, with Criterion Capital’s 1,000-capsule Zedwell hotel in Piccadilly Circus – the ‘world’s largest capsule hotel’ and the latest example of investor interest in the asset class.
“Capsule hotels are popular among the Gen Z population, which of course is the fastest-growing consumer base,” added Han.
“Gen Z have different preferences for how they travel. They are the first generation having grown up with digital accessories, but while they are constantly online, they actively seek privacy and in-person connections.
“Our capsule accommodation is perfect for Gen Z as it gives them their own space, the way a hostel – the choice of previous younger generations – wouldn’t, along with a focus on social communal areas.”
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