While capsule hotels are a type of budget hotels that are already commmon in Japan, of late they have been of interest to european hoteliers. Check out this great video of a capsule hotel from the Roppongi district in Tokyo

A few companies have ventured further into this concept in Europe most notable among them being Yotel (from the founder of Yo Sushi). Compared to the Japanese model, the european versions incorporate a few more luxuries.