What it's Really Like to Stay in a Capsule Hotel

Is there enough room in Sydney’s first Japanese-style mini-stay, The Capsule Hotel, to swing a cat? Steve Madgwick takes the question (almost) literally.

With one hand I swing the cat around my capsule like a helicopter blade. I throw in comical meowing and hissing sound effects for good measure.

With my spare hand, I film it, shakily, on my iPhone. The phone’s battery suddenly dies. I swear at it. I sense a presence. I turn around. I’ve left my capsule door ajar.

A fluorescently dressed Japanese girl in puppy slippers stands behind me in the corridor; back firmly against the wall, eyebrows as high as they’ll go, as if deciding which way to run or whether to cry. From behind, it probably looks like I am swearing at the cat.

She shuffles past, towards the room’s exit, with a look on her face that screams “you’re not well, Mister, and I’m going to tell the world!" Luckily, she doesn’t rat me out to reception. In the middle of an undercover hotel review, it’s a challenge to explain why you’re undertaking the ‘can’t swing a dead cat around’ challenge.

For the record, you can liberally swing Pusheen the pizza-eating (stuffed-toy) cat around the deluxe side-entrance pod (two metres by 1.7 metres) at Sydney’s first Japanese-style mini-stay, The Capsule Hotel, without touching either roof or sides.

First Impressions

In your room, you get lockers for security.

I pop my head into one of the smaller (two metres by 1.2 metres) front-entrance ‘single’ capsules (that my Japanese friend seems to have left open in her bid for freedom), and I assess that no nylon fur would fly in there, either. Undeterred, I continue my tiny-capsule tests.

I slide across my big plastic door (it definitely needs a Star Trek-like ‘ssshhh’ sound effect) and crudely execute an upward-dog yoga pose. Tick; two nose lengths to spare below the roof. Next, I throw an old-school breakdancing backspin and I don’t even glance the sides (warning: may dramatically and instantly unmake your bed).

Unfortunately, these fully-sick space-proving manoeuvres will do nothing to disperse a claustrophobic’s deeply-held anxieties. A front desk guy tells me later that so far only one person has freaked out and not made it through the evening. Not bad for a 70-pod hotel that has been doing a thriving trade since opening in May.

“But, really, it’s not the kind of place they tend to check into," the front desk guy adds as if I have no concept of the disorder.

The Capsule

Each capsule is thoroughly air-conned, but there are a handful of safety features that, ironically, could themselves, or in unison, be accidental triggers for a claustrophobic’s unquiet mind: the ‘SOS button’; a flashing red light that looks like it’s been plucked from an ambulance (60 centimetres from your face); and a mini fire extinguisher provocatively baptised the ‘Flame Fighter’. Yep, no reason at all to panic when that door magnetically locks closed.

Visually speaking, the capsules are nerd magnets, with functional-looking indents and angles that gift them a retro spaceship vibe; a cross-breed of the original Stars Wars and Alien sets seems to be the consensus.

The capsules are decked out in technology that’ll make it hard to leave your little slice of paradise.

The control panel gives you Vader-like power over your space; there’s a USB port, powerpoint, sensor light switches, combination safe, and wide lit-up mirror to help identify formerly unseen wrinkles or just to see how big your pupils are when you run out of things to do.

Other capsule conveniences include an LCD television, recessed behind glass to save space (mine, and a few others on the night, had temporarily lost connection); a detachable table; two (fairly poorly aimed) reading lights; plus a very handy, one-touch sleep button, which shuts everything down with one drowsy swipe.

The fist-thin-mattress is no Cumulonimbus, but it’s not uncomfortable, either. If you don’t get an idyllic eight hours here, it’s probably going to be down to a couple of other factors, anyway. You see, for all their kitschy cred, the capsules are simply snapped and screwed together plastic; stable enough, but far from sound- or lightproof. If you’re a light snoozer, the odd clumsy mount/dismount from a neighbour’s capsule and the late night/early morning George Street ‘ambience’ may be your early wake-up call(s).

In shared areas, however, The Capsule Hotel does the cheery ‘poshtel’ thing rather well (yep, that means shared bathrooms. What did you expect? Bedpans?). It’s fun with a just a hint of the boutique: parquet (look) flooring, chequered kitchen floor and (mostly fake) potted plants dotted around charming retro-look furniture.

This ‘poshtel’ provides communal areas, play a game of foosball with a mate.

Clever lighting, funky mirrors and bright pastels suggest space where there isn’t much at all, which is fine because most of the hotel’s clientele (a good mix of ages, sexes and nationalities) seem either perpetually getting ready to go out, are out already, or are coming home to crash out after going out.

What’s Around

As for going out, you don’t get too much more ‘downtown Sydney’ than this. Perhaps a shade too much, if – like me – you’re not a diehard fan of the George Street cinema strip.

The level-three hotel sits atop The Century Bar, which thanks to a makeover is no longer one of Sydney’s grittiest (read grottiest) pubs. Nowadays, level one is a decent option for a discreet pre-revel beverage. Ironically, or perhaps deliberately, The Capsule Hotel’s doorbell sounds like a paying-out poker machine on the floor below.

Drop into Century Bar for a quick bevvie.

Speaking of big nights and, yes, we have to talk about this… no, you can’t squeeze two peas into these pods. It’s strictly one person per capsule, even in the deluxe ones. I reckon that’s a good thing; otherwise, this place could turn into a (reasonably priced) one-night-stand drop-in centre.

In the context of a novel concept like this, which is cheaper than an Uber or taxi fare if you live more than about 25 minutes away, it’s difficult to say too many truly hurtful words about The Capsule Hotel. It doesn’t take itself too seriously so neither am I.

You might want to bring some earplugs, though. Lest too many pizza-eating cats get swung around in furious faux anger.

The Details

The Capsule Hotel

Address: Level 3, 640 George Street, Sydney

Verdict

A fun one-off adventure if you need a crash pad or are just curious, as long as your standards are not sky high and you don’t mind sharing loos. Book ahead!

Score

2.5/5

We rated

Lots were thrown in for the price including (limited) cooking facilities and wi-fi. While it had the odd blip, the pods, showers and common areas are clean and tidy, especially when compared with some stays in this price range.

We’d change

The atmosphere feels a little transient, but it’s early days. The key card system is annoying and needs to be fixed – you stand there endlessly swiping. Ask for a bottom capsule if co-ordination is not your forte.

All AT reviews are conducted anonymously and our writers pay their own way – so we experience exactly what you would.

Head to our ultimate travel guide for more details on where to eat and what to do in Sydney.

Welcome to the first instalment of Hotel Addict, a monthly column where I check into Australia’s best hotels, exploring not just the rooms, but the stories, service and settings that make each stay unforgettable and worth adding to your wishlist.

Hotel stays have quietly become my thing. Long before I became a travel journalist, I was booking staycations just for a change of scenery. Some had charm, some had character, some had neither. Once, I even stayed in a hotel directly opposite my own apartment – partly for the novelty, partly because I wanted to see my life from a different angle.

For me, hotels represent a kind of mystery – I find myself wanting to know what these buildings contain. Many of them are designed with intention: lighting, materials, scent and sounds that often reflect the city they sit in. Time seems to gently pause in these spaces, which have increasingly become the destination itself for modern travellers.

It only felt fitting for the first hotel in this series to be in my home city and at the hotel that’s been at the top of my list: Capella Sydney.

A sandstone heritage building and palm trees

Capella sits within an Edwardian Baroque‑style sandstone building.

An email with a hotel program from the “Culturist Team” lets me know this will be a luxurious stay. There’s a guided walk around the Botanic Gardens, a weaving workshop and a Sydney contemporary art tour – the kind of addition that signals a hotel that’s tuned into the finer details, and one that’s not surprising given that Capella’s ethos centres on delivering personalised, immersive experiences.

Capella opened in 2023 within a transformed Edwardian Baroque‑style sandstone building in Sydney’s CBD that was originally designed by renowned Scottish-Australian architect George McRae. I often walk past this building and once attended an event inside – I distinctly remember being surprised by how beautiful it was. Bar Studio, Make Architects, and stylist Simone Haag were engaged to sensitively adapt the building for contemporary luxury while honouring its past, in collaboration with Heritage NSW and the City of Sydney.

When I arrive, I’m greeted by three different staff members along the way to reception. There’s a lovely subtle scent, which I later learn combines notes of bergamot, green tea leaves, peony, freesia, vetiver and cedarwood. This hotel strikes such a beautiful balance between grandness and intimacy, with large floral bouquets, contemporary artworks, impressively high ceilings that give it an international feel and quieter nooks to unwind in. Each space is unique, but they’re all unified by a warm, textural and layered design.

Sydney has been deserving of a hotel of this calibre for quite some time, with many of the accommodations in the city looking and feeling dated.

A modern hotel reception with high ceilings

The design strikes the perfect balance between grandness and intimacy.

I have a treatment booked at the hotel’s Auriga Spa prior to check-in. The space is ultra-luxe, moodily lit and intimate, featuring timber joinery, green walls and a sleek design that’s so perfect it almost transports me to Japan. I opt for the Replenish Beauty and LED Facial – a strategic choice with a TV segment on the horizon, and a hopeful bid to look extra fresh for the camera.

The treatment begins with me sitting in the softest robe of my life, wearing slippers and sipping chamomile tea. I’m then whisked away to my private treatment room, which has its own bathroom, a large skylight and a small Japanese-style garden. The treatment is extremely relaxing and moves through cleansing, exfoliating, massaging (arm, head, neck and face) and LED Light Therapy. There’s so much attention to detail – even at the end, the facialist puts my slippers back on me, while I’m still lying down.

Spa treatment room with a massage bed, featuring timber walls and a serene Japanese-style garden visible through a window.

A treatment at Auriga Spa might be the best way I’ve ever started a hotel stay. (Image: Rachael Thompson)

While this treatment certainly hasn’t had a Benjamin Button effect, my sister seems to think I’m glowing, so I walk away happy, or at the very least, zen.

Auriga Spa has a sauna, steam room, ice fountain and a beautiful indoor heated swimming pool. There’s also “experiential showers” – new to me, but essentially it combines water flowing from different places, changing temperatures, mood lighting, gentle sounds, and a subtle lemongrass scent.

You could easily spend the better part of a day at the spa and pool, even if you’re not a guest.

The indoor heated swimming pool with glass ceiling at Capella Sydney.

Guests outside the hotel can use the spa and swimming pool. (Image: Rachael Thompson)

I’m escorted to my room, drunk on relaxation, but I make sure to take note of how noisy the hallways are – answer: dead quiet. My room is 50 square metres, which is huge by hotel standards, but particularly for one in the CBD. It feels like a high-end apartment with floorboards, a freestanding bath and a seating/dining area. My eyes are immediately drawn to the line-up of macarons waiting for me on the dining table.

I’m thrilled to see the mini bar armoire includes a small wine fridge stocked with Minuty Prestige Côtes de Provence, Cloudy Bay Sauvignon Blanc, Handpicked Wines Pinot Noir, and Moët Grand Vintage. Not that I plan on using it (I simply could not justify the prices) – but it’s a nice extra that makes the room feel that much more luxurious. The drinks lineup reads like a who’s-who of local favourites – Young Henrys, Maybe Sammy cocktails, Four Pillars gin and Archie Rose gin. Snacks include Tyrell’s chips, Pringles, Natural Confectionery lollies, and a Carman’s oat bar.

Some small touches I appreciate that some hotels don’t offer: the option to choose your housekeeping time, an iron that actually works well, a Bluetooth speaker, the beloved wine fridge, aluminium water bottles and a bathroom without a glass door or screen that awkwardly exposes you. The one downside is that some of these rooms don’t offer much in the way of a view.

A modern hotel room with a monochrome paletter.

I stayed in a Premier Room which was elegant and relaxing. (Image: Rachael Thompson)

4:30pm is Swill Hour – a daily tradition that nods to the historical “six o’clock swill” in Australia. This one-hour event takes place in the Living Room and invites guests to gather and enjoy each other’s company with a signature cocktail in hand. This afternoon’s tipple is a Eucalyptus Gimlet, a clever, herbaceous little cocktail, by the multi-award-winning Maybe Sammy Team, served on coasters depicting drawings of the historic building. The canapé of the day is a tomato and stracciatella tart. I noticed several staff members chatting with guests like old friends, asking how their adventures earlier in the day went – clearly remembering previous conversations from earlier visits.

Dinner is booked for 6:30pm in Aperture – arguably the most beautiful area of the accommodation. It’s decorated with Australian flora and features a kinetic sculpture hanging from the roof that opens like flowers, with softly changing lights. Tyler, who is serving us, clearly admires the Capella brand, speaking enthusiastically about the other international properties he’s been to and sharing how he sometimes brings his five-year-old daughter here to use the pool.

Interior of Aperture at Capella Sydney, featuring lush greenery and a striking ceiling-mounted sculpture.

The scale of Aperture gives it an international feel.

I kick things off with a basil melon margarita – a winning recommendation – before tucking into the best prawn toast I’ve ever had. For mains it’s crispy Ōra King salmon and spaghetti with mud crab.

When I arrive back at my room, there’s a vegan leather journal on my bed with a note that says: “The ritual of journaling allows us to pause, reflect and focus.” This is part of the turndown service, and my slippers are neatly lined up next to my bed. Will I journal? No. Do I think it’s a nice touch? Yes.

Brasserie 1930 at Capella Sydney, where Art Deco elegance meets contemporary Australian cuisine.

Brasserie 1930 boasts Art Deco elegance.

The next morning, I make the predictable choice of smashed avo for breakfast at the on-site restaurant, Brasserie 1930. There’s also a buffet brimming with all the usual suspects.

Afterwards, I head to the pool to relax for a few hours before the 11am checkout. Despite my earlier resolve not to journal, I find myself reflecting nonetheless – an irony not lost on me – on my 21st hotel stay in Sydney. I write this with growing assurance that great hotels don’t just provide a place to stay; they create memorable moments, thanks in large part to fantastic staff. Kudos to the hiring manager.

Next stop: The Tasman, a Luxury Collection Hotel, Hobart!

What it’s really like to stay in a Capsule Hotel

Is there enough room in Sydney’s first Japanese-style mini-stay, The Capsule Hotel, to swing a cat? Steve Madgwick takes the question (almost) literally.

First Impressions

The Capsule

What’s Around

The Details

Verdict

Score

We rated

We’d change

Head to our ultimate travel guide for more details on where to eat and what to do in Sydney.

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Welcome to the first instalment of Hotel Addict, a monthly column where I check into Australia’s best hotels, exploring not just the rooms, but the stories, service and settings that make each stay unforgettable and worth adding to your wishlist.