I have heard about such hotel rooms in Hong Kong but fortunately never had to use one before January 2025. Heavy travel Calendar/Lunar New Year season leads to wild price hikes by ripoff owners in HK - eg. high rate for closet with toilet in tiny corner washroom. Receptionist friendly, space (cannot be called a room) was clean though no waste basket. Probably would not be legal in Guangzhou. GZ far beats out HK style capitalism for fair rates & higher quality accommodation.