Australian pod hotel concept sets eyes on London debut

Australian budget hotel group LyLo is set to launch its pod hotel concept in London.

Retail and leisure agency P-Three has been appointed to bring the brand to the UK for its European debut.

The group is currently seeking office or retail conversion sites between 15,000 and 50,000 sq ft in Southwark, although other central locations “will be considered”.

LyLo was founded in 2022 as part of EVT, a major Australian operator of cinemas, hotels, resorts and restaurants.

It offers hostel-style accommodation with onsite co-working, social and wellness spaces.

The group’s Japanese-inspired pod hotels feature a bed, a secure space to store belongings and shared amenities, such as bathrooms.

LyLo operates 608 pods, 40 private rooms, 170 ensuite rooms and four F&B venues across Auckland, Queenstown and Christchurch in New Zealand and Brisbane in Australia.

Thomas Rose, co-founder at P-Three, said: “The pod hotel model has proven to be a game-changer in the hospitality space, especially for younger, budget-conscious travellers who often prioritise unique experiences and dynamic, social environments over traditional hotel offerings.

“With its large and vibrant visitor base, London is the perfect starting point for LyLo’s European expansion and we’re confident that their innovative approach and design-led concept will resonate well in this market. We look forward to working with them to bring it to life.”

Tim Alpe, managing director at LyLo, said he was confident the European market would "embrace our unique blend of affordability and community-focused design".

Hotel groups including Zedwell and Z Hotels are known for their compact rooms, and brands including Inhabit and the Hoxton have seen the potential in offering small rooms to appeal to cash-conscious guests, solo travellers or those looking to stay for only one or two nights.