"Micro-Hotels" For The Shrunken Travel Budget

A New York hotel with luxury sheets and state-of-the-art audio for less than $100 a night? All you have to sacrifice is a bit of privacy and a little -- well -- a lot of space.

Moving beyond budget accommodations to an idea that borrows from a ship's berth or a train's sleeper car, developers are gambling that in tough times travelers looking for a little pampering at lower prices will embrace "micro-hotels."

The concept of an entire hotel room the size of a suburban bathroom has spread across Europe in recent years. And as the U.S. economy tanked, interest in the idea has grown, especially in high-priced markets like New York City, where there are fewer options for budget travelers.

"It's certainly the right product for the times," said Tom Botts, a specialist in the hotel and travel industry at Hudson Crossing, a strategic advisory firm.

The trick, says Sean MacPherson, co-developer of The Jane hotel, is to make its 150 tiny single rooms, about 7 feet wide by 8 feet long, feel "charming and special" rather than simply cramped.

With no room for extra furniture, guests at The Jane, which is opening in stages between now and the end of the summer, stash suitcases and clothing in storage spaces above and below the narrow bed. A large mirror and a small window help stave off potential claustrophobia.

The "micro-luxury" touches at what was originally, in 1908, a hotel that rented cabin-like rooms to sailors for just 25 cents a night include 350-thread count sheets, a 23-inch flat-screen LCD TV, DVD player, iPod dock and free wireless Internet.

"If you stay at a hotel at any price, you have to have a sense of hospitality and luxury," MacPherson said. That's especially true in this economy, he added, when people are looking to get the most bang for their buck.

So, the bathroom? Alas, you'll likely have to share two public bathrooms on each floor, which each contain a pair of tiled shower stalls and toilets. The hotel also has 150 larger, and higher-priced, "captain's cabins" that include private bathrooms and offer a view of the Hudson River.

Hotel developer Richard Born, who is involved with The Jane and a similar hotel in midtown Manhattan called The Pod, said he and his partner have been approached by more than one national hotel chain looking to expand the micro-hotel concept in America.

European micro-hotels owned by the easyHotel chain, saw a steady rise in demand last year that accelerated in the second half as the economy deteriorated, said commercial director Calum Russell. Occupancy at easyHotel's London properties surged to 81 percent in January, from 65 percent in the same month a year earlier.

Russell said the company has also noticed more business travelers at its hotels as companies scale back on their corporate travel spending.

"People are more budget-conscious," said Gerard Greene, the chief executive of British-based Yotel, which books pod-like rooms at its airport locations for as little as 25 pounds, about $35, for a four-hour stay so people can nap during a layover. "The extra 10 pounds, it makes a difference to people."

In the midtown neighborhood near the United Nations, the Pod's occupancy levels are hovering near 90 percent as some other once-bustling NYC hotels sit half-empty.

The hotel, which opened in January 2007, has lowered its rates. A bunk-bed room with no bathroom, which peaked at $190 at the height of the market, are now going for $89 a night.

The 350-room hotel's design is more bare-bones than The Jane's, and the bed linens are less luxurious. But it, too, offers amenities like flat-screen TVs.

While the prime candidates to stay at micro-hotels tend to be younger international travelers, Born said he has been surprised by the variety of guests who stay at the Pod, including older Americans looking to save money during a trip to the city.

Images courtesy The Jane and The Pod hotels

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

[Adviser travel.justluxe]

The concept of micro-hotels seems great seeing the down trend economic trend. I expect more hotels of this coming soon to facilitate the tourists to enjoy their trips with limited budget.

[Casa Diego Tenerife]

2 single rooms - bath - bed and breakfast - week 175.- Euros
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[mandino]

this is quite cost effective... well, not for the claustrophobic though. I am not one, so it's cool! :) this looks like quite a high class hotel but small..