Pod Central will open in June.
Each pod comes with bedding, a reading light and earplugs at £30 per night.
Pod Central said there are 16 pods stacked in pairs with shared bathroom facilities.
Mia Preston managing director of Pod Central, who has lived in St Leonards for more than 15 years, said: “This is something new for the area, offering budget accommodation for young people, single parents, retired people – anyone looking for ‘no frills’ accommodation.
“I came up with this fun idea when I was taking my son to explore universities round the country and it was difficult to find inexpensive accommodation.”
Pod Central is opening its hotel next month in St Leonards.