Capsule Hotels: What they are and how they work

August 18, 2025

Capsule hotels emerged a few decades ago and, since their appearance, they have proliferated all over the world, including Spain. But do you really know what they are? Find out here all the details about this innovative form of accommodation.

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What are capsule hotels?

Capsule hotels are a form of accommodation in a small space where only the bed fits to sleep in. In this sense, showers and bathrooms are shared with other guests.

The definition is clear: it is an exclusive cubicle to spend the night. The space is limited and includes only the bed, electrical outlets and air conditioning. Only in some cases do they have a television.

Origin of the concept

This type of accommodation emerged in Japan, a country that suffers the consequences of limited space; at the end of the day, it is an overcrowded island.

The idea was born in response to the latent need to offer functional accommodation for salaried people who missed the train home. Thus, it became an offer for those looking for a single night's sleep in a hotel.

Over the years, capsule hotels have established themselves as a suggestive experience for guests with elegant tastes. They have spread all over the world and can be found in several countries, including Spain.

You may also be interested in: flex living models.

Main features and functionalities

The objective of these places is to have much more space for other guests, which allows for more affordable prices. For the guest it is a different experience, with no resources other than pajamas and a pillow.

Personal space

Each guest has a cubicle approximately 200 cm long by 120 cm high and only 125 cm wide. This is considered to be a sufficient size for private, comfortable and cozy accommodation.

Architecture and installation

These cubicles can be stacked two or more high, with stairs providing access to the capsules on the upper levels. 

Luggage is stored in auxiliary lockers located outside the cubicles; some hotels have a small locker next to the beds for this purpose.

Privacy and intimacy

Client privacy is ensured by the use of doors or curtains at the end of the capsule. Although the bathrooms are for common use, privacy is guaranteed at all times.

Additional Services

Hotel accommodations vary according to the user's own needs, but most have television services, stable Internet connection and air conditioning.

On the other hand, some have restaurants or vending machines, swimming pools or other entertainment spaces. It should be noted that these hotels are classified by gender and are not child friendly.

Types of capsule hotels

There are several classifications for this type of hotels, which vary according to facilities, services and design:

Standard capsules

These are compact cubicles designed for a single guest; they have basic sleeping amenities such as a bed, power outlets and sometimes a television. 

Premium capsules

Some designs are higher-end and offer additional amenities beyond the standard model. For example, they may include private bathrooms, larger storage space or specialized entertainment systems.

Themed or luxury capsules

The capsules in this category include particularities of a certain theme. In this sense, it is possible to find a futuristic design or one inspired by science fiction.

How do they work?

Given the characteristics of these modular hotels, those who stay in them must follow certain rules. The reduced and shared space demands certain security and courtesy requirements.

Entry and check-in process

Upon arrival, shoes should be left with the rest of the belongings in a locker. This locker is locked with a key, so it is recommended that guests bring with them any items they may need.

Use of capsules 

Once in the cubicle, the blinds, curtains or sliding doors are closed. Noise is always present and can be heard from the footsteps of guests walking down the hallway to the snoring of people nearby.

To minimize noise, one of the rules for the proper use of the capsules is not to talk between guests or on the cell phone so as not to disturb them.

Services and common areas

Shared showers and bathrooms, and lockers for belongings are included. Likewise, there are some establishments that offer spaces such as game rooms, restaurants, vending machines and libraries.

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Best capsule hotels 2025

Hotels of this type may only be a compendium of Japan, but they can truly be found in any country. So you can travel the world and find the most stylish sleeping pods of 2025.

  1. Nadeshiko Hotel Shibuya, located in Tokyo

It features a zen design, dark wood and delicate details. And it is for women only. It is very common to find single-sex capsules in Japan, as they seek to preserve the intimacy of the genders.

  1. KINN Capsule Hotel, Singapore

It offers a light wood structure, which recreates the Scandinavian design. They are intended to go beyond a simple place to sleep. That is why they redefine the oppressive purpose of the capsules with a more enveloping nature.

  1. 9h nine hours, typical of Japan (located in different localities)

They start from the standard rule that everyone should sleep a minimum of 7 hours during the night, plus 1 hour for showering and 1 hour for changing clothes. In this order, the concept of this hotel proposes to stay for only 9 hours in its capsules.

For whom is this type of accommodation intended?

In its beginnings, it was inspired by salaried workers who could not catch the last train home. For this reason, these capsules were created to allow them to rest and then return to work.

Currently, they are designed for tourists, business travelers and anyone else looking to rest in an optimized place for a low rate.

How much does it cost to sleep in a capsule hotel?

The value of this type of accommodation is very low compared to traditional hotels. Generally, it costs from 20 to 70 euros to sleep in a capsule hotel; the price varies according to the services and amenities offered.

Advantages and disadvantages 

These hotels have certain services and common access areas that seek to compensate for the reduced dimensions of the individual cubicle. In this sense, it is convenient to know the advantages and disadvantages of this type of lodging.

Advantages

Undoubtedly, the most significant advantage of these hotels is the price. Generally, they are located in large cities where the prices to be paid for a night's lodging are high, and the difference between them is exaggerated.

So, if you want to live a totally different adventure, don't suffer from claustrophobia and want to save money, try staying in one of these capsules for one night.

Disadvantages

Noise can be a problem in these capsules. Apart from space, quality sleep requires a dark and quiet environment.

It is important to consider that, even if the capsule is closed, the corridors are still illuminated at night. In addition, your neighbor may be a snorer and will probably not be able to prevent you from hearing him. 

Is it a good idea to invest in capsule hotels? 5 reasons to do so

If you belong to this niche and are considering upgrading or expanding the services of your hotel network, here are some reasons to invest in capsule hotels:

  1. Meaningful and innovative user experience 

Unlike regular hotels, these capsules offer an immersive and minimalist environment that is sure to impress guests. From a modern ambiance to the latest technology, they guarantee a pleasant experience.

  1. Maximizes efficiency and space

Its architecture maximizes space and efficiency, making it a practical option for those who want to receive more guests while occupying less space. It also saves on maintenance and operating costs.

  1. Attracts a wide variety of guests

The architecture of these hotels appeals to a broad demographic. From price-conscious travelers to tech-savvy and business people looking for convenient accommodations.

  1. Degree of customization and personalization

Personalization and customization within these hotels allows guests to tailor their stay to their preferences. They can configure the lighting and climate, among other integrated options.

  1. Sustainable and ecological design

Most of these sleeping pods are designed with environmentally friendly materials and contribute to energy efficiency. Thus, they reduce the carbon dioxide effect and operating costs.

You may be interested in: smart city.

Frequently Asked Questions (FAQs)

Are capsule hotels safe?

Of course they do. Although they offer a reduced area, they are designed to guarantee guest safety. To this end, they usually have surveillance cameras and controlled access to the facilities.

What is the approximate initial investment to set up a capsule hotel?

It all depends on the type of capsule and its location; this is how an investment of this type is measured. The first hotel in the country cost around US$100,000,000; however, the last one cost around US$700,000,000.

What permits are required to open a capsule hotel?

Like any other hotel, a National Tourism Registry (RNT) is required. It is also necessary to pay taxes and register as a "hostel" with the Chamber of Commerce. The only difference lies in the innovative concept.

Where is it most advisable to invest in capsule hotels?

The price of a capsule hotel in Spain ranges between 20 and 50 euros per night. However, the location, the season and the amenities offered can raise the cost to approximately €70. 

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Conclusion 

Investing in capsule hotels is a strategic decision that saves space, construction and money. At the same time, it offers a number of benefits to people looking for practical, economical and sustainable accommodation.

Undoubtedly, this is a smart investment that makes a difference and attracts a wide variety of customers. If you are ready to be part of this innovative proposal, consider the advantages of capsule hotels.

Sergio Navarro

Expert in blockchain, investments and personal finance.

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Under study
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Estimated duration:
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