In recent years, the hotel industry has been undergoing a transformation that might leave some guests feeling like they have checked into a shoebox rather than a spacious suite. With the rise of Airbnb and changing consumer preferences, hotel operators are taking an innovative approach to design that prioritizes profitability while still aiming to keep guests satisfied. This shift is resulting in smaller rooms packed with amenities that cater to a modern traveler’s needs, albeit with some sacrifices along the way.
The trend began when the occupancy rates for traditional hotels started to plateau, causing operators to rethink their strategies. One chain, Marriott, launched its mid-tier Moxy brand. The trick? Designing rooms that are about half the size of the average American guest room. Surprisingly, these compact spaces are generating up to 20% more revenue than their larger counterparts. It seems that smaller can indeed be smarter when it comes to the bottom line.
However, hotel designers faced a formidable challenge in this quest for efficiency. To shrink a room without completely alienating guests, they began eliminating furniture pieces that typically eat up precious square footage. Gone are the spacious closets that occupy about seven square feet. Why bother with ironing boards when a communal laundry in the lobby is the new go-to? Instead of clunky desks, fold-out options are making their debut, reclaiming significant space. And, the beloved mini-bar? It’s out too, as these little treasure troves require constant upkeep that just isn’t worth the trouble anymore.
The bathroom, however, remains unscathed in this miniaturization movement. Designers have learned that a bit more space allocated to this essential area significantly boosts guest satisfaction. After all, who doesn’t appreciate a decent bathroom? The changes allow hoteliers to save over 70 square feet in each room, which allows for more rooms to be squeezed into the same footprint. The catch? Despite the increased capacity, those smaller spaces usually command lower nightly rates—which means hotels need to get creative with their public areas to ensure profits don’t take a nosedive.
What’s the solution? Hoteliers are focusing on expanding common areas that entertain and delight guests. Bars, with their relatively low staffing needs and high prices, are becoming the new gold mines for revenue. Less staffing compared to a full-service restaurant means more dollars can flow straight to the bottom line. Next, hoteliers are busy identifying local attractions, such as museums and stadiums, that can help draw visitors into their spaces. By knowing where to invest, they can fill the gaps that both guests and profits are looking for.
In the end, the creation of these smaller yet trendy spaces might be more about design than sheer size. Yet, once the paint dries and the furniture is moved in, it heavily falls on the hotel operators to ensure that each guest feels well taken care of during their stay. After all, a beautifully designed room won’t matter much if the service doesn’t measure up. In this competitive world of hospitality, it’s not just about how small you can go, but how well you can still cater to the needs of your guests—because happy guests are repeat guests.
