After four years of planning and negotiations, construction has begun on Christchurch's first pod hotel to be built alongside the city's international airport.
The "Jucy Snooze" being built will hold close to 300 fibreglass and steel capsules that fit one person and can be booked for $30 per night.
Jucy chief executive Tim Alpe said customers hiring vehicles from Jucy had shared their experience of a shortage of accommodation in the Garden City.
"There's definitely a shortage of accommodation options in and around the airport, as there is in Christchurch in general at the moment, post the earthquake.
"It's been a project that has been a long time in the making so we're thrilled to see us breaking ground down there."
The pods will be eight to a room and an alternative to the traditional bunk beds in a shared dorm room targeted at budget travelers.
"It's your own individual capsule in which you can have a little more privacy," Alpe said.
He said there would also be full rooms with en-suites available. Some guests would only be using the accommodation for a short stopover before continuing travels elsewhere, Alpe said.
"Being close to the airport enabled us to also have the option for people who only want to be there for four or five hours. They want a place to sleep and then they want to get back on a flight and go," he said.
Jucy was confident an increase in direct flights to Christchurch would mean demand for the new hotel would continue.
Construction was expected to be complete by October 10.