This centuries-old historic building used to be a consulate, but Karakoy Rooms opened in 2011 above the owner's popular Karakoy Lokantasi restaurant. The hotel has its own entrance, a small but stylish space with red, minimalist-chic wire chairs and the reception desk. Off to the side, an alcove contains an attractive high-back chair and reading lamp, but that's it in terms of the hotel's common space. The hall leads back to a stairwell that winds up around a cage elevator. Most guests are couples (the hotel is gay-friendly too), and children under 12 are not allowed.

The hotel is one block from the waterfront and within walking distance of the port where cruise ships dock. It’s outside the more touristy areas, but there are multiple tram stops within a five-minute walk for easy access to other parts of the city, and this district is more recently known for its popular restaurants and bars. It's a 10-minute walk to Galata Tower and the historic area, and the Istanbul Museum of Modern Art is an 11-minute walk away along the waterfront. The Blue Mosque and Hagia Sophia are about a 15-minute cab ride away. Istanbul Ataturk Airport is within a 30-minute drive.

The hotel has only 12 rooms and each seems more spacious and prettier than the next. The all have beautiful parquet wood floors and original architectural details can be seen in the unique floor plans and square columns. Bare white walls are decorated only by moulding and the addition of exposed copper electrical conduits running from the ceiling to every fixture, switch, and outlet. The standard rooms are about 270 square feet, with free Wi-Fi, double beds, wardrobe closets, and handsome wood desks with industrial work lamps. Seating areas have leather chairs near minimalist credenzas sporting flat-screen TVs. Ladder shelves hold minibars and electric kettles. Upgraded rooms have larger seating areas with couches and studios add king beds along with kitchenettes. The bathrooms are covered in modern geometric tiles and have large walk-in showers.

The hotel's restaurant, Karakoy Lokantasi, is one of the most popular in the neighborhood and many locals can be found here drinking wine and indulging in traditional meze dishes. Guests get a discount, but reservations may be required. Free Turkish breakfast is included, but guests should note that children 17 and under are not allowed at dinner. A rooftop terrace has a few tables and a row of loungers with great views of the city and the Golden Horn. The hotel lacks a fitness center and a spa, but Wi-Fi is free throughout.