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Hotel rooms are shrinking, and millennials love it

The hotel scene is going micro. From independent hoteliers to big-name chains like Marriott, accommodation providers are taking advantage of the “micro-hotel” trend. 

Think large communal areas and high-tech offerings that appeal to social travellers, but yes – tiny sleeping spaces.

“It is a slightly literal example of the ‘living like a local’ trend – where an apartment is often just a place to sleep, and the public spaces are where one spends the majority of their time,” says Gray Shealy, executive director of the Master’s of Hospitality Management Program at Georgetown University.

Micro-hotels first popped up in urban centres such as Japan and New York City where real estate is particularly expensive. Packing more rooms into a property made financial sense.

The micro-hotels are particularly appealing to Millennial travellers, who are starting to travel more and spend more.

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“We are focused on the Millennial-minded consumer, with an emphasis on style, attitude and design at an economical value,” says Vicki Poulos, global brand director for Moxy; Marriott’s brand for millennials. It debuted in September 2014 with the opening of the Moxy Milan. More than 150 properties will be added to the Moxy micro-hotel collection in the next 10 years.

Some travellers don’t necessarily agree that the comfort level equals that of regular hotels, but room rates can make staying at micro-hotels worthwhile. So what makes a micro-hotel successful?


It needs to be reasonably priced

A small room means a reduced comfort level compared to standard hotels. A micro-hotel still needs to provide value to its guests, and must be priced appropriately for its size. Reduced room rates can make micro-hotels a preferred choice.

It needs to be unusual

Millennial-minded consumers place an emphasis on style, attitude and design when determining economical value.

It needs to cater to modern, working, frequent travellers

Most micro-hotels are designed for people who understand the quality and complexities behind the design of a compact room, The rooms must be very well thought-out, meaning there’s a space to put your bag, there’s a space to put your things, there’s a plug wherever you want to plug in your device. Those who frequent micro-hotels often take advantage of the available technology.

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