The more basic question is: how many hotels ARE there in Tokyo that charge $60 a night or so? I think it's even possible that capsule hotels cost more.
Edited to add: Oh, just read the story, this wasn't in Tokyo but in a small town. Yes, I would imagine there are circumstances under which the situation described there could happen (only in Japan). And this probablz wasn't just accomodation as the room price in most Japanese Inns includes both breakfast and dinner!
[This message has been edited by RichardInSF (edited 10-09-2003).]