Costing around £6.50 ($10) a night, Faktum Hotel sees customers experience life in Gothenburg as a homeless person, reports The Huffington Post.
Faktum editor-in-chief Aaron Isrealson said: "We don't think politicians do enough. This is a reminder of poverty and a way to get involved in an easy manner."
Approximately one in six homeless people in Sweden live in Gothenburg, and the hotel aims to raise awareness of their lives.
Profits are donated to support Faktum Magazine, a street publication sold by homeless people.
Israelson added: "The most important thing is to take a look at what is going on around the street, to take a minute or a couple of seconds to look homeless people in the eye when you meet them in the street and just reflect.
"We've had a very cold season in January and February. It's a time when people take matters like this more serious."