The capsule concept was invented by the Japanese to provide relatively cheap accommodation. AFAIK it’s popular for people who missed the last train or simply looking for a nap… the rates can be charged by hour(s) to fit these demands.
According to Shanghaiist, a night at the Shanghai’s Xitai Capsule Hotel, which only serves male guests, would cost just 88RMB (~13USD), and charges for shorter stay include a basic rate of 28RMB plus an additional 4RMB per hour.
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