The newest boutique hotel in Melbourne's CBD is located on the roof of an old carpark in Flinders Lane and consists of vintage caravans.

The recently opened Notel is actually six chrome Airstream caravans, brought over from the US and completely refitted as designer urban accommodation. Each caravan is 31 square feet, including the bathroom, a small living area and bed.

Inside, the rooms feature an iPad Pro with acts as a virtual concierge, directing guests to hot spots in the city. The iPad is also loaded with complimentary Netflix. Guests need a smart phone to get in to the hotel, which uses the JustIN Mobile app for check-in.

The top offering is called the Airstream With Benefits, which comes with the added bonus of an open air Sapphire Spa. Standard Airstreams start at $395 per night,with the Airstream With Benefits starting at $440 per night.

The hotel is the work of James Fry, owner of Fry's Fast Park. Fry owns the car park with his father, Blair, who established the Fry's Storage empire 40 years ago.

Fry enlisted Melbourne-based firms FMSA Architecture and Edwards Moore, as well as creative agency Self-titled who created the Notel brand.

Sticking with the local theme, Melbourne artist Ash Keating created the huge site specific external mural at Notel.

Notel uses pure organic bamboo lyocell sheets from Melbourne brand Ettitude, and bedding from Crown Posture Bedding, an Australian family owned and operated business with facilities in Melbourne and Brisbane.