Put the money you would have spent on sleeping in a fancier room towards a longer stay in Japan at this Shinjuku hotel.

Tokyo’s Shinjuku neighborhood is perhaps the very best place to situate yourself in the city, thanks to the countless number of dining, drinking, shopping, and other entertainment options in the area, as well as the incredibly convenient Shinjuku Station, a nexus of more than a dozen train and subway lines that gives you quick and easy access to the rest of downtown Tokyo and even sightseeing spots outside the city center.

▼ Shinjuku

If you’re looking to set up a base of operations for your Tokyo trip in Shinjuku, but also to do so on a budget, you’ll have a hard time beating Hatagoya. Located just a few minutes on foot from Shinjuku Station, Hatagoya is a capsule hotel, but its name actually refers to a class of inn from the Edo period, the last era of feudal rule by the shogunate.

Because of that, Hatagoya aims to be a bit more stylish than the typical non-descript capsule hotel. The hotel’s common areas and lounge are decorated with old-school Japanese motifs that impart a touch of class to the incredibly affordable accommodations, which cost just 3,200 yen (US$29) a night).

With such low prices, Hatagoya is an attractive option for backpackers spending a night in Tokyo before venturing further afield in Japan. But what’s really special is that the hotel offers discounts for longer-term guests. A five-night stay costs 15,000 yen, which is a modest saving. The real deal, though, is if you’re looking to stick around for a whole month, in which case Hatagoya will charge you just 85,000 yen (US$772), which is an absolute bargain for such lengthy hotel use in Shinjuku.

As a capsule hotel, Hatagoya isn’t particularly luxurious, but it’s comfortable and clean (despite accepting only male guests). On our recent stay, our capsule featured a neatly made sleeping pad outfitted with fresh, clean sheets, our own personal TV, and a power outlet positioned so that we could charge our smartphone while still laying down and using it to browse the Internet.

Gusts can check in any time after 4 p.m., with check-out and 10 the next morning. You can come and go as you please during that time, and there are large lockers to store your luggage in.

Pajamas toothbrushes, and razors are provided, as are towels and washcloths. Hatagoya has a surprisingly spacious Japanese-style bath, bit enough to fit a half-dozen bathers or more, and one wall features a mural of Mt. Fuji, so that you can admire its majesty as you soak away the tiredness of a day of exploring Tokyo.

▼ Entrance to the bath

If you are staying for a month, odds are you’ll need to do laundry, and Hatagoya’s washing machines are standing by to help on that front. Outside food and drink are allowed, but if you run out of provisions there’re vending machines on the premises.

Again, as a capsule hotel, Hatagoya doesn’t offer as much room to stretch out as a regular hotel would. But with a nearly unbeatable location and price, it’s a great place to stay if you’ve come to Japan to see the country, not loaf around in your hotel room.

Hotel information

Hatagoya / 旅籠屋
Address: Tokyo-to, Shinjuku-ku,Kabukicho 1-16-9
Check-in: 4 p.m.
Check-out: 10 a.m.

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