Backpacking is a new form of travel, and the number of backpackers has increased steadily over the years. Because of the popularity of backpacking, capsule hotels, a novel type of hotel using a bed-based accommodation rate, have arisen. The beds used in capsule hotels are mostly made of plastics, such as fiber-reinforced plastic or ABS resins. Moreover, many beds are squeezed into a limited space, and each bed is enclosed in a capsule. If a fire breaks out in a capsule hotel, early detection will be difficult and when the fire spreads and gets worse, the hotel will be hard to evacuate. Capsule beds have unique characteristics that need to be considered for fire prevention and evacuation, but presently, there are no relevant laws or regulations governing capsule beds. This study reviews the literature and investigates cases related to fire safety and evacuation concerns for capsule hotels, to analyze fire risk factors and propose risk management strategies. This study also reviews fire prevention and evacuation as well as firefighting-related regulations and offers suggestions accordingly. To increase business owners’ and hotel guests’ awareness of fire prevention and safety, the competent authority in the future can refer to the fire risk factors and risk-control approach proposed by this study for developing fire prevention evacuation strategies. This study also provided building and firefighting related agencies with useful suggestions for amending relevant laws and regulations.