A capsule hotel (カプセルホテル kapuseru hoteru), also known as a pod hotel, is a type of hotel developed in Japan that features a large number of extremely small “rooms” (capsules) intended to provide cheap, basic overnight accommodation for guests who do not require or who cannot afford the services offered by more conventional hotels.
The price for one night generally ranges from $40 to $60, even in expensive cities like Tokyo. Cheaper than taking a taxi, they are often the last resort for city workers who linger at bars and, as a result, miss the last train home.
Capsule hotels are in the boom in Japan to meet the demand of increasing number of tourists. Here is a high-tech one opened in Shibuya this spring.