As millenials and other travelers are starting to look out for new types of rooms, some hotel brands are finding success with Microhotels. A Microhotel is a hotel where the rooms are typically 200 square feet or smaller, and consist of a small central room and condensed bathroom. Think Moxy by Marriott or Motto by Hilton.
The goal for these operators is to give the guests only the essential room they need in the room and hopefully entice them to spend more time in the common areas. Due to this, these properties are creating multi-functional lobbies and unique bar spaces.
These properties are usually developed in urban markets where development cost are high, competition strong and so helps the operator charge a lower room rate. The developer is then able to put more money into the fixtures, furniture and common spaces.
