China Moves Into Capsule Hotel Market

The move comes at a time of rapidly increasing leisure travel in the country.

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. January 11, 2011

January 10, 2011 - China has followed Japan into the capsule hotel market, with travelers to Shanghai to be offered the chance to spend the night from just 68 yuan ($10). Ahead of the Spring Festival holiday - when hundreds of millions of people crisscross the country to celebrate Lunar New Year with their families - the 68 room property has opened adjacent to Shanghai Railway Station.

The hotel imported the miniature hotel rooms from Japan, where the concept originated. Each is complete with a power point, clock, light, television and wireless internet. Prices start at 68 yuan ($10) for ten hours or 88 yuan for 24 hours.

Hotel owner Ta Zan explained: “This is a huge bargain compared with other budget hotels in Shanghai.”

The property is believed to be the first in China built to international standards and is just 300-metres square. Each of the capsules is 1.1-meters high, 1.1-meters wide and 2.2-meters long. The hotel also has a public lavatory, shower room, smoking room and shared guest room.

China's booming tourism industry was expected to host 2.1 billion domestic and international travellers in 2010, an increase of 12 percent over the previous year, according to previous industry estimates.

The hotel is for men only.

Shanghai is one of the most popular destinations in China