Workers who moved out of London for remote work are under pressure to come back to the office in the city, and some are choosing to stay in Japanese-inspired sleeping pods for just £30 ($40).

I travelled to Piccadilly Circus in the heart of London to spend a night in a newly opened capsule hotel, after two of my colleagues who live outside the city recommended staying there.

Zedwell Capsule Hotel, a brand owned by Criterion Capital, opened in September and offers nearly 1,000 capsules measuring 1 meter long, 1 meter wide, and 2 meters in depth — likely the smallest hotel rooms in London.

It has a rather unassuming exterior despite being located inside the historic London Pavilion building — originally built as a music hall in 1885. The entrance is around the corner of the busy station, through some black doors.

The cost of staying in a hotel in Central London is staggering, sitting at an average of £265 per night in the third quarter of 2025, according to real estate firm Knight Frank. In comparison, the average daily rate of hotels across Europe was 125 euros in the summer, according to an analysis of over 600,000 reservations from 2,000 independent hotels by RoomRaccoon.