Abstract: The invention allows for the simplified operation and maintenance of a hookah apparatus. In a first aspect of the present invention, an electrically-powered hookah apparatus is provided. The hookah apparatus comprises a vessel and a housing. The housing comprises a first section and a second section. The first section is removably fitted over the vessel, and the second section comprises a combustion unit including an electronics unit. The combustion unit comprises a capsule holder configured to hold capsules of combustible material and a heating unit configured to heat the capsules. The electronics unit comprises a power unit and a programmable controller connected thereto, the controller configured to controllably power the heating unit. In a second aspect of the present invention, a capsule of combustible material is provided. In a third aspect of the present invention, a method of operating an electrically-powered hookah apparatus is provided.