A capsule hotel, also known in the Western world as a pod hotel, is a type of hotel developed in Japan that features many small bed-sized rooms known as capsules. Capsule hotels provide cheap, basic overnight accommodation for guests who do not require or who cannot afford larger, more expensive rooms offered by more conventional hotels.

A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a refrigerator, and other kitchen facilities, upholstered chairs, a flat-screen television, and en-suite bathrooms. Small, lower-priced hotels may offer only the most basic guest services and facilities. Larger, higher-priced hotels may provide additional guest facilities such as a swimming pool, a business center with computers, printers, and other office equipment, childcare, conference and event facilities, tennis or basketball courts, gymnasium, restaurants, day spa, and social function services. Hotel rooms are usually numbered to allow guests to identify their room. Some boutique, high-end hotels have custom decorated rooms. Some hotels offer meals as part of a room and board arrangement. In Japan, capsule hotels provide a tiny room suitable only for sleeping and shared bathroom facilities.