Capsule Hotel Sydney Review: What It’s Like Staying At The Unique Pod Hotel.

Sydney is a vibrant, world-class city that draws in travellers from all across the globe to experience its beauty and charm. But as one of the most expensive places to visit in Australia, a trip here can be costly, especially for accommodation.

But one place that caters to the budget traveller is the Capsule Hotel Sydney. Following the design of the innovative Japanese pod hotels, this unique two-star lodging option is a fantastic alternative.

It’s particularly suitable for solo travellers who love having a super affordable place to stay but don’t like the vulnerability of sleeping in a room with several unknown people, like what happens at backpacker hotels and hostels.

They also provide options for short stays, so if you’re tired and need a few hours of rest between other activities, you can take a nap and sleep tight, making the hotel even more versatile.

So if any of that interests you, here is my Capsule Hotel Sydney review after staying there for two nights.

Disclosure: This review is a non-sponsored post based on my stay at Sebel Quay West Suites Sydney in December 2022. All opinions expressed here are my own.

For such an affordable place, the Capsule Hotel is in an excellent location within Sydney’s CBD. It is close to numerous attractions and is within easy walking distance of the Museum and Town Hall Train stations and the Town Hall and Chinatown light rail stops, making accessing many parts of the city very convenient.

Capsule Types.

The capsules at the hotel are all the same, except for the deluxe, which is wider than the regular ones.

Each private capsule features a large mirror, dimmable lights, USB ports and a powerpoint. Next to it is a large locker for storing your belongings, which looks to be able to fit a large suitcase vertically.

There are, however, different dorms. Mixed dorms are available for both men and women, while the female-only dormitories are for ladies only to help them feel more secure, as the capsules are not allowed to be locked in case of an emergency.

• Mixed Dorm. – Sleeps 1.
• Female Capsule. – Sleeps 1.
• Deluxe Single Capsule. – Sleeps 1.

Mixed Dorm. – 3A301.

The mixed dorm on level three slept 16 and was a mix of front and side-entry capsules positioned around the room to create a U-shaped walkway. Wooden lockers were located between the side-entry capsules and were large enough to fill a full-size suitcase.

Exterior.

The capsules are futuristic and fun to look at stylistically, but the execution was not the best, which was particularly noticeable on the outside. It was plastic-y, cheap and flimsy.

As my pod was on top, I needed to climb three steps to get to my bed, and they seemed entirely plastic based on how much creaking noise they made when I ascended and descended from my capsule. 

I felt bad for the guy underneath who came just after I did and who I assumed was trying to sleep while I settled in. 

It also didn’t help that bar on the side to help me get in was loose and needed screwing in.

Interior.

Inside was a much better experience. Once the door is closed and the lights were on, I felt like I was in a galaxy far, far away. 

The space themeing was on point because while the material used on the interior was the same as the exterior, it was far less noticeable that what they used wasn’t of the highest quality.

Much of this can be attributed to their dedication to the futuristic elements because I was too delighted by the novelty of it all to be bothered by it.

The solid bright light panel surrounding the large mirror activated by your capsule key made it delightfully feel like I was in a spaceship the most. And it also made the already adequately sized capsule feel even more spacious.

Under the mirror was a console that featured light-up, touch-activated buttons that did an assortment of things, such as dimming the lights, adjusting the air conditioning and locking the pod. However, the receptionist told me I had to keep the pod unlocked. There was a panel in the middle, but sadly that was covered up with a sticker.

It also has USB ports for charging devices, a headphone jack and a powerpoint, but annoyingly, it wasn’t for Australian plugs. 

Underneath the console was a safe, while to the side were some nooks to put small items like your phone.

Sleeping.

The Capsule Hotel Sydney provides guests with linen for their stay.

The pillow and doona which were in the locker were all clean, plush and comfortable, but I noticed a few hairs on my sheets when I first laid down and didn’t appear to be mine, which was slightly concerning.

While the capsule is spacious and has plenty of room to toss and turn during sleep, the only letdown was the mattress. It is very thin, and my hips could feel the pod’s base, so while I slept soundly during both daytime and nighttime, I woke up with slightly sore hip bones.

View.

Level 3 of the Capsule Hotel Sydney had two small windows.

One was next to my capsule and had lovely views overlooking George Street, where people were moving about, and trams were passing by.

It was nice to have some natural light coming into what would otherwise be a pretty dark space. And that there was something nice to look at coming out of the capsule rather than at a brick wall or a back alley, and thankfully, little of the noise was coming through.

Bathroom.

The Capsule Hotel has shared toilets and showers. Level three has two of the former and three of the latter. However, the third shower was being used as a storage space.

The decor was surprisingly modern, but the toilets were pretty small, and while the shower rooms were spacious, they noticeably lacked space to put clothes and toiletries.

I had to put my wash bottles on the window sill, as did many other people, as evidenced by a previous guest’s stuff left there and water damage on the unsealed surface.

Lastly, the second usable shower had a problem with the glass door. When I first tried using it, I couldn’t open it, which didn’t help that it didn’t have handles, so I used the other shower.

But when I went to shower the next day, it was the only one available, but luckily someone managed to pry it open. Did I fear that despite closing it gently, I would get stuck inside and have to scream for help? Yes, but thankfully, it never came to that.

Reception & Common Room.

The Capsule Hotel uses the same entrance as The Century Lounge and the reception is on the third floor. It is accessible by stairs or a small historic lift which has a hilariously savage note inside it about how it is old and slow but still achieves more than you can in your love life.

The reception shares its space with a small but beautifully modern common room. It has a reasonably sized bookshelf, several soft lounging chairs, six two-person dining tables, a kitchenette and cupboards for kitchenware and guests to store their food.

There’s also a small outside terrace available for use.

Capsule Hotel Sydney Parking.

Parking for the Capsule Hotel Sydney is non-existent. They provide no onsite or offsite car parks for guests to use. The hotel is most suitable for people walking or using the public transport system to make their way around Sydney.

Staff.

There was only one interaction with a staff member during my 4-stay stay at the hotel during check-in, and it was a pleasant experience.

Nearby Attractions.

Thanks to its ideal location in downtown Sydney, the Capsule Hotel is close to numerous attractions.

Town Hall is 350m north of the hotel. Hyde Park, Australia’s oldest public parkland is 400m east. The illustrious Capitol Theatre is 400m south. Chinatown is 500m southwest. The Chinese Garden Of Friendship is 550m west. The gorgeous Darling Harbour is 700m northwest. The Eye Tower and Pitt Street Mall are 800m and 900m north-northeast respectively while the Hyde Park Barracks are 1.1km northeast.

Best of all, because the Capsule Hotel and most of these attractions are near a tram and train line, you needn’t walk the whole distance to get to them.

Nearby Shops.

There is an abundance of shops within close vicinity of the Capsule Hotel Sydney.

The surrounding streets are packed with shops of all kinds, while World Square and Regent Mall offer even more shopping opportunities.

So whether you’re looking for a handful of things or want to go all out on a retail shopping experience, you’re sure to find just about anything you’re looking for and more without straying too far from the hot.

Nearby Restaurants.

As mentioned before, the Capsule Hotel Sydney has many stores catering for just about every kind of shopper within the immediate area. And that includes restaurants.

A favourite of mine is Mother Chu’s Vegetarian Restaurant on Pitt Street, which features a delectable range of Asian dishes and is only a 250m walk from the hotel.

Public Transport & Accessibility To Other Attractions.

The Capsule Hotel is conveniently close to two train stations and two light rail stops.

The closest one is the Chinatown light rail stop at 270m south of the hotel, while Town Hall has a light rail stop and a train station located 290m and 350m to the north. Lastly is Museum, which is 350m east.

From here, getting to Sydney’s tourist heartland at Circular Quay is easy as both the trains and light rail service that station, where you can then walk to the Sydney Opera House, the Sydney Harbour Bridge and the Rocks. You can board the ferries to reach Darling Harbour, Manly and Watsons Bay.

You can also reach Darling Harbour by catching the train to Piermont, where the Australian Maritime Museum is.

Also accessible by train is the Eye Tower, which features an observation deck. You can even tour the spire to experience uninterrupted 360-degree views of the spectacular city.

From the Town Hall train station, you can also reach the outermost reaches of the city as well, such as Bondi, the Blue Mountains and more.

Staying at Sydney’s Capsule Hotel was fun and mostly positive. I thoroughly enjoyed the high-concept novelty of it, even though it felt cheaply executed in some respects and needed a bit of restoration in others.

But for someone who has shied away from sleeping in a hostel dorm filled with strangers, staying here was a fantastic alternative because it offers the sleeping privacy of a hotel but the affordability of Backpackers. Because even those they disallowed locking the capsules, I felt safe.

As for value for money, it is excellent, especially since Sydney is one of the most expensive places in Australia to visit, and it is close to numerous restaurants, shops, attractions and public transport options.

And because it is such a novel approach to accommodation, staying there is an experience in itself.

The Capsule Hotel would appeal to budget travellers looking for an affordable place to stay in Sydney but who value sleep privacy and aren’t comfortable with the hostel and backpacker dorm layout.

It’s particularly great for solo adventurers or groups of two as it is still cheaper than getting a room at other hotels across the city.

Another group of people the Capsule Hotel Sydney would appeal to are people who need somewhere to sleep for a few hours, such as those who are passing through Sydney on a plane or train layover and have several hours to kill.

Also, those looking for a novelty experience will love staying at the Capsule Hotel.

If you are travelling on a budget and are just looking place to sleep without all the frills but aren’t sure about bunking at a backpackers, the Capsule Hotel Sydney is a solid option.

If you’re planning a trip to Sydney, consider checking out these other posts.

• See what it’s like climbing the Sydney Harbour Bridge with this in-depth review.
• Discover why the Pylon Lookout is better than Bridgeclimb.
• Uncover the best lookouts throughout the city.
• Have a look at Sydney through photos in the gallery.