Capsule Hotels: What They Are and How They Work

August 18, 2025

Capsule hotels emerged a few decades ago and, since then, have spread across the world, including Spain. But do you really know what they are? Discover all the details about this innovative way of staying here.

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What are capsule hotels?

Capsule hotels are a type of accommodation with very limited space, where there is only enough room for a bed to sleep. 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 originated in Japan, a country that faces the consequences of limited space; after all, it is an island with a high population density.

The idea emerged as a response to the pressing need to provide functional accommodation for salaried workers who missed their train home. Over time, it became an option for those looking to stay in a hotel for just one night.

Over the years, capsule hotels have established themselves as an appealing experience for guests with refined tastes. They have expanded worldwide and can now be found in various countries, including Spain.

You may also be interested in: flex living models.

Main features and functionalities

The goal of these spaces is to free up more room for additional guests, which allows for more affordable pricing. For guests, it offers a different experience, with no more than a set of pajamas and a pillow.

Personal space

Each guest has a cubicle measuring approximately 200 cm in length, 120 cm in height, and just 125 cm in width. This is considered sufficient space to stay in privacy while remaining comfortable and cozy.

Architecture and installation

These cubicles can be found stacked in two or more levels, with ladders providing access to the capsules on the upper floors. 

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

Privacy and intimacy

Guest privacy is ensured through the use of doors or curtains at the entrance of each capsule. Although bathrooms are shared, 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 hotel, which vary according to their facilities, services, and design:

Standard capsules

They are compact cubicles designed for a single guest and include basic sleeping amenities such as a bed, power outlets, and, in some cases, a television. 

Premium capsules

Some designs are high-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

Capsules in this category include features specific to a particular theme. In this sense, it is possible to find futuristic designs or ones inspired by science fiction.

How do they work?

Given the characteristics of these modular hotels, guests are required to follow certain rules. The limited and shared space calls for specific safety and courtesy requirements.

Entry and check-in process

Upon arrival, guests are required to leave their shoes along with their other belongings in a designated locker. The locker is secured with a key, so guests are advised to carry with them any items they may need.

Use of capsules 

Once inside the cubicle, the 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 nearby occupants.

To minimize noise, one of the rules for proper use of the capsules is not to talk with other guests or use mobile phones, in order to avoid disturbing others.

Services and common areas

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

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Best Capsule Hotels of 2025

Although these types of hotels may seem uniquely Japanese, they can actually be found in countries all around the world. As a result, travelers can explore the globe and discover some of the most stylish capsule hotels for sleeping in 2025.

  1. Nadeshiko Hotel Shibuya, located in Tokyo

It features a zen-inspired design with dark wood and delicate details, and it is exclusively for women. In Japan, it is very common to find gender-specific capsule hotels, as they aim to preserve privacy between genders.

  1. KINN Capsule Hotel, Singapore

It offers a light wood structure, which recreates the Scandinavian design. These capsules are intended to go beyond being just a place to sleep, redefining the traditionally oppressive concept of capsule hotels with a more immersive and welcoming approach.

  1. 9h (Nine Hours) is a Japanese capsule hotel concept, with locations across different cities in Japan.

They are based on the standard assumption that everyone should sleep at least seven hours per night, plus one hour to shower and another to change clothes. Under this concept, the hotel proposes staying in its capsules for just nine hours.

Who is this type of accommodation designed for?

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

Today, they are designed for tourists, business travelers, and anyone else looking to rest in a well-optimized space at a low cost.

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

The cost of this type of accommodation is significantly lower compared to traditional hotels. In general, staying in a capsule hotel typically costs between €20 and €70 per night, with prices varying depending on the services and amenities offered.

Advantages and disadvantages 

These capsule hotels offer a range of services and shared common areas designed to offset the limited size of individual capsules. For this reason, it is important to understand the main advantages and disadvantages of capsule hotels as an accommodation option.

Advantages

Without a doubt, the biggest advantage of capsule hotels is their affordable price. They are typically located in major cities where hotel rates are high, making capsule hotels a significantly cheaper accommodation option compared to traditional hotels.

So, if you’re looking for 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. In addition to limited space, getting 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. In addition, your neighbor may be someone who snores and will likely be impossible not to hear. 

Is investing in capsule hotels a good idea? Five reasons why

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. A meaningful and innovative experience for users 

Unlike traditional hotels, these capsules offer an immersive, minimalist environment that is sure to impress guests. From a modern atmosphere to cutting-edge 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 group, ranging from budget-conscious travelers to tech-savvy guests and business professionals seeking convenient accommodation.

  1. Level of customization and personalization

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

  1. Sustainable and ecological design

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

You may be interested in: smart city.

Frequently Asked Questions (FAQs)

Are capsule hotels safe?

Absolutely. Although they offer a reduced space, they are designed to ensure guest safety. To achieve this, they typically feature surveillance cameras and controlled access to the facilities.

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

Everything depends on the type of capsule and its location; this is how an investment of this kind is evaluated. The country’s first capsule hotel had a cost of nearly USD 100,000,000; however, the most recent one reached approximately USD 700,000,000.

Which Permits Are Required to Open a Capsule Hotel?

As with traditional hotels, you need to register with the National Tourism Registry (RNT), pay taxes, and register as a “hostel” with the Chamber of Commerce. The distinction is purely in the innovative concept.

Where Is It Most Recommended to Invest in Capsule Hotels?

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

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Conclusion 

Investing in capsule hotels is a smart strategy that reduces space and construction expenses while saving money. It also provides many advantages for those looking for practical, budget-friendly, and eco-friendly lodging.

Without a doubt, this is a smart investment that makes a difference and attracts a wide range of customers. If you’re ready to be part of this innovative concept, consider the advantages of capsule hotels.

Sergio Navarro

Expert in blockchain, investments, and personal finance.

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Zaragoza | Almozara

Braulio Foz, 2

Financed
Building Flipping
DOMO-ZGZ-7

Funded:

100%

616.679,01 €

Objective:

616.679,01 €

Estimated duration:
12 meses
Estimated annual return:
12,05%
Minimum ticket:
200€
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