A type of hotel popular in Japan that offer very small 'capsule' style rooms that are just about big enough to accommodate a single adult, but are incredibly cheap, usually around $30 per night. They tend to be used by the unemployed who find the price convenient, or by people who are too drunk or are out too late to get home safely.

A typical capsule contains a television and wireless internet capabilities, and will have some kind of food available in a communal lobby area. Higher class capsules may also feature games consoles and communal pools. A safe and key is provided for people to temporarily store their belongings.