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A guide to capsule hotels in Japan

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The capsule hotel represents an image that many people have of Japan: dense use of space, technical ingenuity, and a futuristic vibe.
But a capsule hotel is ultimately a convenient way to get a good night’s sleep at an affordable price. Capsule hotels can now be found around the world, from the US to Singapore and Vietnam, but they originated here in Japan.

What are capsule hotels?

A capsule hotel, also known as a pod hotel, is a unique type of basic, affordable accommodation. Each guest occupies a capsule, essentially a bed-sized pod, that you can close either with a door or a curtain (the door will not lock, as per Japanese law). These capsules are arranged in rows, double-stacked. It is typical, but not guaranteed, that your capsule will have an air-conditioning unit as well as power outlets for charging your devices. Belongings are usually stored in a locker provided by the hotel.
The first capsule hotel opened in Osaka in 1979. Today you find them all across Japan and beyond.

What’s the price?

So, how do much does a night at a capsule hotel cost? Not a lot. Capsule hotels are cheap compared to a standard hotel in Japan. Expect to pay between 2,000 and 5,000 yen/night, although keep in mind that prices might be higher during peak tourist seasons.
Within Japan, capsule hotels are popular among Japanese business travelers on a budget…or people who missed the last train home and need a place to rest for a few hours!
If you’re in Japan for an extended stay, some capsule hotels will even rent to you by the week or the month.

Showers and bathrooms

Perhaps this goes without saying, but there’s no room for a toilet or bathroom inside a capsule! In a typical capsule hotel setup, you’ll find toilets at the end of the hall, and a shared, Japanese-style bathing area in the building, perhaps on your floor, perhaps not. Take a seat on a stool in front of a showerhead, clean yourself off, then get in the tub if you’re so inclined. Soap and shampoo are typically provided, and private shower stalls may also be available.

Are capsule hotels claustrophobic?

Most capsule hotels are cozy but not cramped. You’ll have room to move around, and of course you’re free to get out of your capsule whenever you wish. A typical capsule has dimensions of something like 1.2m x 2m x 1m. Some “fancy” capsule hotels will also have pods that are closer to the size of a small room. All that said, these capsules are enclosed spaces, and so if you have severe claustrophobia, you do probably want to steer clear of capsule hotels.

Are there female-only capsule hotels?

Most patrons of capsule hotels are men, and some capsule hotels are male-only. However, if you want to stay in a female-only capsule hotel, you have options. The Kanda branch of the popular Nine Hours capsule hotel (near Tokyo Station and Akihabara) chain, the Nadeshiko Hotel Shibuya, and the Akihabara Bay Hotel are three good women-only examples.
Also bear in mind that even in capsule hotels that allow both men and women, each floor will usually be separated by gender.

Photo: Nacasa & Partners

Are there capsule hotels for couples?

Capsule hotels that offer mixed dormitory rooms do exist. One is UNPLAN Kagurazaka, located in Kagurazaka which has a traditional Japanese ambiance. It offers a vibrant atmosphere and cozy place to sleep at an affordable price.

Courtesy of UNPLAN Kagurazaka

Where can I find capsule hotels in Japan?

Capsule hotels can be found all over Japan, but they are most common in big cities, in built-up areas and near large transport hubs. So if you’re planning your trip to Tokyo (or any other Japanese city), and you think a capsule hotel is a good fit for part of all of your journey, search for capsule hotels in the central neighborhoods you want to spend the most time in.

Tokyo

Capsule hotels are common in big neighborhoods like Shinjuku, Shibuya, and Akihabara and near major transit hubs such as Tokyo Station, Narita Airport and Haneda Airport.
Nine Hours is one of the most popular capsule hotel chains, and they have seven locations across Tokyo. Also look into the First Cabin chain, which offers large, luxurious capsules, mimicking the experience of flying first class.

Photo: Nacasa & Partners

Osaka, Kyoto and other areas

As mentioned before, capsule hotels can be found all across Japan, but they tend to be concentrated in the bigger cities. And within those cities, in their most central areas.
So in Osaka, look in Dotonbori, Shinsaibashi or Namba. In Kyoto, look in Kawaramachi And so on.



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IHCL partners with Ambuja Grp for 15 new hotels | Kolkata News

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Kolkata: Indian Hotels Company (IHCL) has announced the agreement signing for 15 new hotels across its brandscape with the Ambuja Neotia Group. This capital light arrangement will grow the partnership to over 40 hotels, including a Taj Resort in the Sundarbans.Puneet Chhatwal, MD and chief executive officer of IHCL, said: “IHCL’s pioneering legacy of building destinations like Rajasthan, Kerala, Goa, Andaman and Lakshadweep islands will now extend to unlocking the tourism potential of the east and northeast with this agreement. We are delighted to extend our partnership with the Ambuja Neotia Group, known for its luxury hospitality developments showcasing the spirit of this region.The 15 new sites identified to be developed are a combination of greenfield, brownfield and conversion projects and spread across Bengal, Sikkim and Himachal Pradesh. These would include Taj resorts in Darjeeling, Shimla and Rabong, SeleQtions Hotels in Kolkata and Siliguri and a Tree of Life in Lataguri. A few projects will also include Taj branded villas in Darjeeling, Sikkim, Lataguri and Raichak.Harshavardhan Neotia, chairman of Ambuja Neotia Group, said: “This announcement follows closely on the heels of IHCL’s strategic partnership with the Ambuja Neotia Group for Tree of Life, reflective of the strength and success of our ongoing collaboration. IHCL, with its iconic brand Taj, recently ranked as the World’s Strongest Hotel Brand, is renowned for its world-class service, enabling it to showcase these destinations on the global tourism map.





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The Rising Potential of Extended-Stay Hotels in a Post-Pandemic Travel Landscape

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The hospitality industry has undergone a seismic shift in the past five years, reshaped by pandemic-driven travel patterns, remote work adoption, and a growing demand for flexible, long-term accommodations. Among the most resilient and lucrative segments emerging from this transformation is the extended-stay hotel sector. For investors and developers, this category offers a compelling blend of strategic real estate development opportunities, operational efficiency gains, and strong cash flow potential.

Post-Pandemic Resilience and Market Fundamentals

Extended-stay hotels, particularly those in the midscale segment, have demonstrated remarkable resilience since 2020. While traditional hotels faced occupancy collapses during the pandemic, extended-stay properties maintained occupancy levels 10 percentage points higher than the industry average in 2024. This durability stems from their alignment with evolving consumer needs:
Remote Work and Bleisure Travel: The rise of digital nomads and hybrid work models has created a sustained demand for accommodations that blend work and leisure. Extended-stay hotels, equipped with kitchenettes, laundry facilities, and co-working spaces, cater to this demographic.
Infrastructure and Relocation Demand: Industries like healthcare, construction, and energy require temporary housing for crews, while families relocating for job opportunities increasingly prefer extended stays over short-term rentals.
Cost Efficiency for Developers: Median development costs for midscale extended-stay hotels stabilized at $167,000–$169,000 per room in 2024, significantly lower than full-service or luxury properties. This cost advantage, combined with steady cash flows, makes them attractive in a high-interest-rate environment.

Strategic Real Estate Development in the Midscale Segment

Developers are capitalizing on the extended-stay boom through innovative strategies tailored to current economic realities:
1. Conversion Projects: Repurposing underperforming limited-service hotels into extended-stay properties has become a cost-effective solution. These conversions reduce construction timelines, lower capital expenditure, and align with market demand for long-term stays.
2. Suburban and Secondary Market Focus: With urban centers seeing slower recovery, developers are prioritizing suburban areas near business parks, hospitals, and infrastructure hubs. These locations offer lower land costs and strong demand from long-term tenants.
3. Pre-Development Planning: High construction and financing costs have pushed developers to focus on pre-development activities—securing entitlements, conducting market feasibility studies, and engaging in architectural design—while delaying construction until conditions improve.

The Q1 2025 U.S. hotel development pipeline underscores this trend, with extended-stay hotels accounting for a disproportionate share of new projects. Brands like Home2 Suites by Hilton and TownePlace Suites by Marriott are leading the charge, leveraging their brand equity to attract investors and guests alike.

Operational Efficiency: The Key to Profitability

Extended-stay hotels achieve profitability through a combination of cost controls and tailored guest experiences:
Reduced Labor and Maintenance Costs: Weekly housekeeping, lower staff turnover, and reduced wear-and-tear on rooms cut labor and maintenance expenses. For example, a 100-room extended-stay property can reduce daily housekeeping costs from $3,000 to $420 by shifting to weekly cleaning.
Energy Management: Predictable occupancy patterns allow for optimized energy use, with HVAC systems operating at consistent levels and utility contracts negotiated for long-term savings.
Technology Integration: Digital tools like self-check-in kiosks, mobile apps, and dynamic pricing systems streamline operations and enhance guest satisfaction. Advanced revenue management systems have boosted RevPAR by up to 19% for some properties.
Customized Amenities: In-room kitchens, laundry facilities, and co-working spaces cater to extended-stay guests, reducing reliance on in-house food and beverage services while differentiating the property from competitors.

Investment Implications and Strategic Recommendations

For investors, the extended-stay segment offers several advantages:
High-Yield Opportunities: Attractive cap rates (often 4.5–6%) reflect strong fundamentals and lower perceived risk compared to other hotel categories.
Resilience in Economic Downturns: Extended-stay hotels have historically outperformed during recessions due to their alignment with cost-conscious consumers and long-term demand drivers.
Alignment with Demographic Shifts: The rise of remote work, healthcare staffing needs, and infrastructure projects ensures sustained demand for years to come.

Actionable Steps for Investors:
1. Target Midscale Developers: Prioritize companies with a track record in converting or developing midscale extended-stay hotels, particularly those with brand affiliations (e.g., WoodSpring Suites, Hyatt House).
2. Focus on Suburban Markets: Allocate capital to properties in secondary markets near hospitals, business parks, or infrastructure projects, where demand for long-term stays is most robust.
3. Evaluate Operational Efficiency Metrics: Look for operators with strong energy management systems, low labor turnover, and technology-driven revenue optimization tools.
4. Monitor Cap Rate Trends: Extended-stay hotels have maintained stable cap rates despite broader market volatility, making them a defensive play in uncertain economic climates.

Conclusion

The extended-stay hotel sector is not just a post-pandemic anomaly—it represents a fundamental shift in how people travel, work, and live. For investors willing to navigate the complexities of real estate development and operational efficiency, this segment offers a rare combination of resilience, profitability, and long-term growth potential. As the market continues to evolve, those who position themselves to capitalize on the extended-stay boom will likely reap significant rewards.



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Fairmont debuts palace stay fit for a Maharaja: Travel Weekly Asia


Fairmont Hotels & Resorts, part of Accor, has opened a new 327-key property in Udaipur in partnership with Keystone Resorts Pvt. Ltd.

Set on an 18-acre estate in Rajasthan’s Aravalli Hills, Fairmont Udaipur Palace draws inspiration from Mewar architecture, offering a blend of traditional craftsmanship and contemporary design. The property features 327 rooms and suites, eight dining concepts, and over 13,000 sqm of event space across indoor and outdoor venues.

“The opening of Fairmont Udaipur Palace marks a defining moment in Fairmont’s journey in India,” said Omer Acar, CEO of Raffles & Fairmont Hotels & Resorts. “This new palace reflects Fairmont’s commitment to honouring the spirit of each location we enter.”

The Jewel of Udaipur Suite features a private pool, spacious terrace, bespoke interiors, and panoramic views. Photo Credit: Accor

Accommodation options range from Fairmont Rooms to the Royal Maharaja and Maharani Suites, which feature private pools and expansive terraces.

Dining options include all-day restaurant Bahaar, palace bar Dahaad, Indian restaurant Zaika, and rooftop lounge Sitara, with more venues such as Celeste and The Alchemist set to open in the coming months.

The hotel also features the 1,115 sqm Fairmont Spa & Salon, Fairmont Fit Gym, and an activity zone for guests of all ages.

“We wanted to create a destination within a destination –where every guest feels like a modern Maharaja or Maharani,” said Somesh Agarwal, chairman and managing director of ROCKWOOD Hotels & Keystone.

Udaipur’s newest property also caters to weddings and corporate events, with venues such as Jewel Ballroom, the open-air Mehfil courtyard, and multiple terraces and lawns. A private helipad provides direct access for guests.

Vishrut Gupta, general manager of Fairmont Udaipur Palace, added: “Our vision was to create more than a hotel – a living palace that stirs emotion, celebrates culture and offers experiences that linger in memory.”



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