Yotel's 100-square-foot premium rooms offer iPod docking stations, free wireless internet access and rain-head-showers.
Yotel, the airport capsule hotel chain operating at Gatwick, Heathrow and Amsterdam's Schiphol, is expanding to New York in 2011.
Yotel Times Square, located at 42nd Street and 10th Avenue, will have 669 hotel rooms - but they will still be small, only about 170 square feet in which to relax, refresh and sleep.
Yotel was founded by Simon Woodroffe, who started the sushi chain YO! Sushi in 1997 and has appeared as a "dragon" on the British version of the TV show Dragons' Den. He offers hotel facilities in small capsules, typically charging £25 for a four-hour stay to business travellers needing a place to rest while in transit.
Yotel Times Square will charge $200-$250 (U.S.) a night for capsules about twice the size of Yotel's airport accommodation - but they will still incorporate retractable beds, "monsoon rain showers" and purple mood lighting.
It will be part of a larger mixed-used building owned by Related Properties and is being touted as the largest hotel opening in New York in 2011.
Related Properties' 1.2-million-square-foot, 60-storey LEED-Silver complex will also include residential units and the Frank Gehry designed Signature Theatre.
Gerard Greene, Yotel's CEO, says the firm uses radical design to offer the customer an exciting product and better value. "Not satisfied with airports we are now transferring a successful brand to city centres across the globe."