A new breed of hotels featuring small, inexpensive rooms is expanding in New York City to serve its ever-expanding tourism industry, the New York Times reported. What started with the opening of BD Hotels’ 345-room Pod Hotel, at 230 East 51st Street, in 2007, and continued with the 669-room Yotel’s opening last year at 42nd Street and 10th Avenue, is becoming a growing trend. BD Hotels is planning to open a second Pod hotel with 366 rooms later this month in the old Allerton House at 145 East 39th Street.Over The Next Two Years Citizenm Will Open Hotels On West 50th Street in Times Square and 185 Bowery in Nolita.
The hotels all share a similar concept: small rooms, often 100 square feet or less, few frills and inexpensive rates. Rates at the Pod Hotel range from $100 to $200 per night and 170-square-foot roms at the Yotel start at $149 per night but average $200.
However, the Pod Hotel has found that the small rooms necessitate larger common areas, and so BD Hotels’ forthcoming Pod 39 will feature a top-floor lounge and bar.
These small-room concepts, inspired by hotels in Japan and Europe, have also proved profitable. The Pod Hotel averages 93 percent occupancy and $100 in profit per square foot, while the Yotel has registered 80 percent occupancy in its first 11 months with operating profits of 50 percent. [NYT]