Rooms without windows open new opportunities

From capsule to cabin room

Cabin rooms have their roots in the famous capsule hotels of Japan. The first one opened in Osaka in 1979 and quickly became a symbol of a new, minimalist way of traveling. Guests were offered small capsules, often no larger than the bed itself, at an affordable price. The focus was on the essentials: a place to sleep.

Since then, the phenomenon has spread but evolved in different directions. Today, cabin rooms are found in more traditional hotel settings—full-sized rooms with all amenities, but without windows. The background is the same as for capsule hotels: rising land prices, urbanization, and a growing demand for budget options. But it is also about a new perspective on what is considered valuable in a hotel room.

Darkness, silence, and better sleep

Today, many travellers choose cabin rooms not only for the price, but for the experience. A dark, soundproof room can provide significantly better sleep than a room overlooking a busy street. Pandox clearly sees how the demand for this type of room is growing. Guests appreciate an environment where they can fully relax, without disturbing light or noise from outside.

For the business traveller, the cabin room offers a place to recharge between intensive days. For the city traveller, it provides the opportunity to stay centrally at a more affordable price. Taken together, it creates greater accessibility for hotel guests overall.

Regulations and trends in different countries

How the phenomenon develops largely depends on local regulations. In Sweden, cabin rooms are permitted, and there is also a clear increase in the concept here. In the United Kingdom, cabin rooms can be approved in certain cases, particularly when used as cabin-like or budget rooms. However, this requires that important aspects such as ventilation, fire safety, and guest comfort are handled properly. Since local authorities may interpret regulations differently, it is often necessary to involve an architect or building consultant early in the planning phase.

In other countries, such as Norway, Belgium, and the Netherlands, windowless rooms are not permitted due to strict building codes regarding ventilation and emergency exits. In Finland, the concept was banned in 2015, but since 2025 cabin rooms have once again been allowed, opening up new opportunities in the Finnish market.

This means that development varies significantly between countries. In some cities, cabin rooms are seen as a necessary innovation to meet increased pressure on hotel capacity, while in other countries the concept remains unused. For Pandox, this means that strategy must always be adapted locally – but also that the potential is considerable where regulations allow. At present, Pandox only has cabin rooms in the Swedish market.

Spaces that create value

From a property owner’s perspective, cabin rooms are a smart investment. Spaces that previously generated no revenue—such as linen rooms, basement levels, or old banquet halls—can, with relatively modest means, be converted into fully functional, revenue-generating hotel rooms.

One example is the renovation of Quality Hotel in Södertälje, where two floors that once housed banquet halls were converted into 20 new cabin rooms. At the same time, the restaurant was also developed to meet the increased number of guests.

At Scandic Malmen in Stockholm, Pandox has invested in building 25 cabin rooms on floors -1 and -2. These rooms have become an attractive option for guests who value a central location, reasonable prices, and good sleep quality in the otherwise lively neighbourhood around Medborgarplatsen.

At Quality Hotel Luleå, renovations are also underway where nearly 30 new cabin rooms are being created on floor -2, in the space that previously housed a nightclub. By converting areas that previously had no revenue potential, the hotel now gains a directly value-enhancing addition. An investment that, in the long term, generates multi-million growth in property valuation.

Cabin rooms create value for both guests and property owners

For Pandox, cabin rooms are part of a larger journey toward smarter and more sustainable hotel properties. By making use of existing spaces, unnecessary new construction can be avoided while increasing profitability and property value. At the same time, guest needs are met in new ways. In an era when travel is more diverse than ever—from business travellers to weekend visitors and event guests—flexibility is key.

Tobias Ekman, SVP Director of Asset Management Nordics, Pandox:
"At Pandox, we are constantly looking for ways to invest in and develop our properties together with our hotel partners. Cabin rooms are a clear example of how innovation can be created by rethinking the use of existing hotel space. By transforming areas that would otherwise generate no revenue, we create both economic value and a more sustainable hotel product – while at the same time offering guests great comfort with darkness and quiet that promote better sleep. It’s a win-win for us, our tenants, and above all the guests – and something we will continue to develop going forward."

Cabin rooms in different countries