A capsule hotel is a hotel system of extremely dense occupancy in Japan. A guest room is truly just a human “capsule” providing room to sleep and little more, although facilities usually include a television and other electronic entertainment. These capsules are then grouped and stacked, two units high. Luggage is usually stored in a locker away from the capsule. Privacy is maintained by a curtain at the open end of the capsule but noise pollution can be high. Washing facilities are communal and there are often restaurants, or at least vending machines, and other entertainment facilities.

This style of hotel accommodation was developed in Japan and has not gained acceptance outside of the country. The Japanese capsule hotels vary widely in size, some having only fifty or so capsules and others over 700, and are often male only. Clothes and shoes are exchanged for a robe and slippers on entry. The benefit of these hotels is convenience, and price, usually around $25 a night.