These are called cabin hotels. I tried one in Osaka (in the Namba shopping district). The price is good considering the central location and the comfy facilities. There is no lights off or curfew, so you can enter/leave the hotel freely 24 hours a day. There are electric sockets, lights, a large flat screen TV and lockers in each cabin. Towels, soap, etc are provided.
There are different floors for male and female, so you can't stay with your girlfriend in the same room, for example.
Security is also tight, as access to the room floors are via security card, and you have to pass through the reception area.
Bathrooms and toilets are shared, like in dormitories. Since this is Japan, there are also hot-pools and saunas.
Unlike true capsule hotels(which I also tried), there is enough room in each cabin for you to walk around and stretch (the open space in each cabin is about the same size as your bed).
The drawbacks are :
1. Cleaning of the cabins are at certain times only ( I think between 10am to 12pm), so if you are still in your cabin at that time, they will skip your room and it won't get cleaned for that day.
2. If your neighbour is noisy, you can hear him. Luckily, Japanese people are generally very civic-minded and considerate, and tend not to make any loud noises.
Overall, I think this is a good option for single travellers trying to save some money. A regular hotel in Japan that has the same level of comfort, cleanliness and central location will be much more expensive.
I won't hesitate to stay in one of these again.
wow....would like to try it someday. how does one follow up with daily hygiene? like shower or WC? any nights off timing ?