Zip by Premier Inn will offer rooms from just £19 per night after its owners noted guests were "willing to forego traditional expectations" for cheaper prices.
Each room will have twin beds that can be pushed together to create a double, a bathroom with a power shower, free wifi, a TV and air conditioning.
Whitbread, the company who own Premier Inn, say the rooms will measure 8.5m square and was designed by the same company who develop first class cabins on planes for Air France and Lufthansa.
Breakfast is served in a "large communal area" which "transforms into a bar in the evenings".
Whitbread's CEO, Alison Brittain, said the intention was to fill a "niche in an under-served market".
She wants Zip to be "attracting those guests who are on a particularly tight budget but still expect and deserve the basics done brilliantly".
Six of the rooms have had been on sale to customers "for many months" as a trial.
Premier Inn managing director Simon Jones said customers were "happy to compromise on location or some extras if they are paying a fantastic price for their room".
The first Zip hotel is due to open in the Roath district of Cardiff in early 2019, while the second is set to be in Southampton.