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Criterion Capital launches 1,000-pod capsule hotel in London’s Piccadilly


Criterion Capital has officially opened its 1,000-pod Zedwell capsule hotel in London’s Piccadilly Circus, welcoming its first visitors.

The Zedwell Capsule Hotel Piccadilly Circus now occupies the Pavilion, a Grade II-listed building on Great Windmill Street, just a short distance from Zedwell’s flagship hotel in the Trocadero building.

Described as the world’s largest capsule hotel, the new project offers “cocoons” with soundproof, windowless walls, Hypnos mattresses, ambient lighting, and smart climate control — all priced from £30 per night.

The hotel also provides shared bathrooms with private shower stalls, secure luggage storage, and dedicated women-only dormitories.

A hotel spokesperson said a “small number” of dormitories are still being completed, with all capsules due to be finished before the end of the year.

The head of hotels at Criterion, Halima Aziz, said: “Our capsule concept introduces an entirely new way to stay in London - affordable, sustainable, and experience-driven. We’re proud to preserve the legacy of the London Pavilion, while opening a new chapter in its story - creating a space where guests can pause, recharge, and connect with the city, with others, and with themselves. Over the coming months, we look forward to unveiling new enhancements and bold ways we’re taking the space to the next level.'

In October 2024, Criterion Capital secured a £25m funding facility to back the brand’s expansion into York, Manchester, and Edinburgh.

Earlier this month, Time Out reported that Criterion Capital had received approval to transform the four floors above the Prince Charles Cinema near Leicester Square into a 230-pod capsule hotel.

Criterion Capital is a real estate owner and platform operator with a UK portfolio of 26 hotels, including its own Zedwell brand, as well as commercial assets across 30 prime London buildings in locations such as Piccadilly Circus, Leicester Square, and Knightsbridge.