Capsule Hotels: What they are and How they work

June 30, 2026

The capsule hotels emerged a few decades ago and, since their appearance, have proliferated worldwide, including Spain. But do you really know what they are? Discover all the details about this innovative form of accommodation here.

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What are capsule hotels?

Capsule hotels are a form of accommodation in a reduced space where there is only room for a bed to sleep. Showers and bathrooms are shared with other guests.

The definition is clear: it's an exclusive cubicle for spending the night. The space is limited and includes only the bed, power outlets, and air conditioning. Only occasionally do they have a television.

Origin of the concept

This type of accommodation originated in Japan, a country that suffers from a lack of space; ultimately, it's an overpopulated island.

The idea was born in response to the latent need to offer functional accommodation for salaried workers who missed their last train home. Thus, it became an option for those looking to sleep just one night in a hotel.

Over the years, capsule hotels have become established, evolving into an appealing experience for guests with discerning tastes. They have expanded worldwide and can be found in various countries, including Spain.

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Key features and functionalities

The goal of these places is to free up much more space for other guests, which allows for more accessible prices. For the guest, it's a different experience, with no more resources 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 sufficient space for a private, comfortable, and cozy stay.

Architecture and installation

These cubicles can be found stacked in two or more tiers, 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.

Intimacy and Privacy

Guest privacy is ensured through the use of doors or curtains at the end of the capsule. Although bathrooms are communal, privacy is guaranteed at all times.

Additional Services

Hotel accommodation varies according to the user's specific needs, but most offer television services, stable internet connection, and air conditioning.

Furthermore, some have restaurants or vending machines, swimming pools, or other entertainment areas. It's worth noting that these hotels are gender-segregated and are not child friendly.

Types of Capsule Hotels

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

Standard Capsules

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

Premium Capsules

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

Themed or Luxury Capsules

Capsules in this category feature unique characteristics based on a specific theme. For instance, you might find a futuristic design or one inspired by science fiction.

How They Work

Given the characteristics of these modular hotels, guests must follow certain rules. The small, shared space requires specific safety and courtesy requirements.

Entry Process and check-in

Upon arrival, shoes and other belongings must be stored in an assigned locker. This locker is secured with a key, so guests are advised to keep any essential items with them.

Using the Capsules 

Once inside the cubicle, blinds, curtains, or sliding doors are closed. Noise is always present, ranging from the footsteps of guests walking down the hallway to the snoring of those nearby.

To minimize noise, one of the rules for proper capsule use is to avoid talking to other guests or on your mobile phone to prevent disturbance.

Services and Common Areas

Shared showers and bathrooms are included, along with lockers for belongings. Additionally, some establishments offer spaces such as game rooms, restaurants, vending machines, and libraries.

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Best Capsule Hotels 2025

While these types of hotels might seem to be a Japanese phenomenon, they are truly found in any country. So you can travel the world and discover the most stylish sleeping capsules of 2025.

  1. Nadeshiko Hotel Shibuya, located in Tokyo

It features a Zen design with dark wood and delicate details. And it's for women only. It's very common to find single-sex capsules in Japan, as they aim to preserve gender privacy.

  1. KINN Capsule Hotel, Singapore

It features a light wood structure, recreating a Scandinavian design. These are designed to be more than just a place to sleep. That's why they redefine the often-perceived oppressive nature of capsules with a more immersive experience.

  1. 9h nine hours, native to Japan (located in various cities)

They are based on the standard rule that everyone should sleep a minimum of 7 hours at night, plus 1 hour for showering and another for changing clothes. Following this, the hotel's concept suggests staying for just 9 hours in its capsules.

Who is this type of accommodation for?

Initially, it was inspired by salaried workers who missed the last train home. For this reason, these capsules were created so they could rest and then return to work.

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

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

The cost of this type of accommodation is very low compared to traditional hotels. Generally, it costs 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 offer certain services and common areas designed to compensate for the small size of the individual sleeping pod. Therefore, it's useful to understand the advantages and disadvantages of this type of accommodation.

Advantages

Undoubtedly, the most significant advantage of these hotels is the price. They are typically located in large cities where accommodation prices per night are high, and the cost difference is substantial.

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

Disadvantages

Noise can be an issue in these capsules. Besides the limited space, quality sleep requires a dark and quiet environment.

It's important to consider that even though the capsule is enclosed, the hallways remain lit throughout the night. Furthermore, your neighbor might be a snorer, and you'll likely hear them. 

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

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

  1. A significant and innovative experience for users 

Unlike traditional 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

Their architecture allows for maximizing space and efficiency, making them a practical option for those who want to accommodate more guests while using less space. Additionally, they offer savings on maintenance and operational costs.

  1. Attracts a wide variety of guests

The architecture of these hotels appeals to a broad demographic. From budget-conscious travelers to tech enthusiasts and business people seeking convenient accommodation.

  1. Degree of customization and personalization

The personalization and customization within these hotels allow guests to tailor their stay to their preferences. They can adjust lighting and climate, among other integrated options.

  1. Sustainable and eco-friendly design

Most of these sleeping capsules are designed with environmentally friendly materials and contribute to energy efficiency. This way, they reduce carbon dioxide emissions and operational costs.

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Frequently Asked Questions (FAQs)

Are capsule hotels safe?

Absolutely. Although they offer a small area, they are designed to guarantee guest safety. To achieve this, they typically 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; that's how an investment of this type is measured. The first hotel in the country cost nearly 100,000,000 USD; however, the most recent one was around 700,000,000 USD.

What permits are needed to open a capsule hotel?

Like any other hotel, the National Tourism Registry (RNT) is required. Additionally, taxes must be paid, and the business must be registered 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 from 20 to 50 euros per night. However, location, season, and 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 costs, and money. Likewise, it offers numerous benefits to people looking for practical, affordable, and sustainable accommodation.

Without a doubt, it's a smart investment that makes a difference and attracts a wide variety of customers. If you're ready to be part of this innovative offering, consider the advantages of capsule hotels.

Sergio Navarro

Expert in blockchain, investments, and personal finance

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Valencia | San Francesc

Convento San Francesc, 5

DOMO-VLC-32
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