To give new meaning to the phrase "living out of a suitcase", one hotel in Lunzenau, Germany, has made it possible to... well, stay in one.

For just €15 (S$23) a night, guests can enjoy staying in one of the world's smallest hotels.

Each minuscule 2.7m by 1.5m room in the "Kofferhotel", or Suitcase Hotel, can accommodate only two guests, and includes bunk beds, a toilet and a sink. There is an outdoor shower.

More than 3,000 people from across the world have stayed at the hotel, which was built in 2004.

The man behind the Suitcase Hotel is retired railway conductor Matthias Letterman.

"I wanted to create a crazy and unusual stopover that fitted in with the railway-themed museum and restaurant that was established nearby back in 1998," said the 56-year-old, who is from Lunzenau.

"One of the large suitcases displayed at the museum was offered to me. With the help of two friends - a plumber and a roofer - I managed to turn it into a hotel."