Crouch and crawl into the future. Australia's first capsule hotel has opened in Sydney CBD and is offering space travel-inspired accommodation at a price point between a hostel and an Airbnb.
Originating in Japan in the late 1970s, the concept of self-contained pods has slowly spread across the world and has now appeared on George Street in the form of The Capsule Hotel.
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Australia's first capsule hotel opens in Sydney
Originating in Japan in the late 1970s, the capsule hotel has finally arrived in Australia.
Sitting above Bar Century, it consists of large rooms packed with up to 18 futuristic-looking pods, each featuring an LCD TV and a control panel with a climate control knob, USB port, headphone jack and a universal power point, among other things.
"I don't know why it took someone so long to open one here, especially considering how expensive Sydney is," said manager James Oliver, sitting cross-legged inside a pod. "It'll take off – it's a big step up from backpackers."
At first fire authorities were baffled by the sleeping arrangement. They decided to play it extra safe and have a smoke detector, fire alarm and a fire extinguisher installed in every capsule. Plus there's an SOS button.
Fairfax Media visited the hotel, which opened on May 13, and found the plastic capsules weren't soundproof and some of the embellishments inside were flimsy.
One night's stay costs between $50 and $70. A price check of accommodation options nearby found the price point sits between a bed in a mixed dorm at a hostel ($30) and a studio on Airbnb ($90), and is similar to a one-person private room at an inn near Central Station.
At $50 for a standard pod, it may appeal to those stuck in the city after a big night and deliberating whether to catch a cab home – a midnight trip to Parramatta would cost about $100.
But for those who've experienced Japan's original capsule hotels it may seem expensive – the standard nightly rate in Tokyo is 2500 yen ($30).
"We're attracting more of an older and local crowd, business people who don't want to pay $190 for a budget room," said Mr Oliver.
While capsule hotels have been around since 1979, China, Europe and India only welcomed their first capsule hotels in the past five years.
Struggling with lower patronage because of NSW's lockout laws, Bar Century owner Walter Guo said last year that he decided to invest at least $5 million into transforming the top three levels of the building into "a designer hotel".
Richard Munro, chief executive of Accommodation Association of Australia, said while the Capsule Hotel was a "niche product", he welcomed innovation and diversification in the market.
"There's a big demand for full-service hotels and limited demand for very low service offerings, so I don't think this is any threat to the traditional hotel industry," he said.
"There's the tyranny of distance in Sydney, with people living over an hour out of the city, so it may be a solution for someone who needs a bed and a shower for the night, so it can fulfil a need."
Carol Giuseppi, chief executive of Tourism Accommodation Australia, said The Capsule Hotel actually bucked the trend, because large, upscale hotels with full-service rooms were opening at an impressive rate.
"The capsule product is a good inclusion because that means there's diversity in the market," she said.
"I think it will succeed. It's a niche product and there's room for more options in that two and three-star market, however the cost of land has often precluded that."