Tiny Hotel Rooms Offer Big Savings

Cost-conscious travelers embrace European-style micro-hotels in pricey markets like New York

Chicago Tribune, March 30, 2009 — Borrowing from a ship’s berth or a train’s sleeper car, developers are moving beyond budget accommodations and gambling that in tough times travelers looking for a little pampering at lower prices will embrace micro-hotels.

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

Luxury Hotels Are Feeling Economy’s Pinch

New York Times, January 27, 2009 — The hotel business has collided head-on with the bad economy and the tight credit market.

Hotel revenue is down sharply. Big new projects, planned in the boom days, are either sitting unfinished or left on the drawing boards. And some high-end hotel owners now face an unhappy situation — how much can they cut prices to fill their rooms before they damage their hotels’ luxury cachet?