LyLo, a capsule hotel brand originally hailing from New Zealand, has announced plans to launch in Europe. The novel accommodation concept is seeking a site in Southwark, London as its first step to grow across the continent.
LyLo provides economical accommodation for travellers, building on the capsule concept pioneered in Japan, where it has become an established way to stay in a city centre location, for a low price. Capsules typically have a bed and personal storage space, with users sharing bathroom facilities. They are often arranged, bunk bed style, in rows one above another, enabling more economical use of interior space.
Born in New Zealand
Lylo started in New Zealand as a brand named Jucy Snooze, which was acquired in 2021 by EVT, or Event Hospitality, an Australian group with hotels, cinemas and restaurants. With their backing, the business has expanded from its Auckland, Christchurch and Queensland sites in New Zealand, adding a hotel in Brisbane. Two more projects, in Fremantle and Australia’s Gold Coast, are in the works.
The company says the LyLo product offers hostel-style accommodation, which appeals to both solo travellers and groups, in the target age range of 18-35. Alongside its sleeping capsules, each LyLo property also has a smaller number of private and ensuite rooms, for those less keen on the compact dimensions of a sleeping capsule.
In the UK, LyLo is specifically looking for an office block or retail space it can repurpose into a capsule hotel, believing that London is an ideal market where its small but budget overnight option will gain traction. “We look forward to bringing LyLo’s fresh approach to hospitality to the city,” said LyLo managing director Tim Alpe.
Aside from its backing of LyLo, EVT is already well established in the hotel space. The company has more than 80 hotels across Australia, operating the Rydges brand, plus QT and Atura brands and managing an 18 strong portfolio of hotels under its Independent Collection by EVT.
Building out the Rydges brand
Aside from developing LyLo, EVT is also growing its other hotel brands. Two Rydges projects are in development, with Rydges Australia Square on the way in Sydney, and Rydges at the Wharf Port Adelaide. The Sydney hotel will have 273 rooms, and is expected to open during the first quarter of 2025.
Also being added to the portfolio in 2025 will be a new QT branded hotel, coming to Sydney. QT Hotel Paramatta will have 257 rooms and will sit within the lower floors of a new 54 storey high rise due for completion in the first half of the year. The property will feature a ballroom with capacity for 200 guests, and an infinity pool on the 18th floor of the tower.
