What if hotel companies decided to literally downsize?
What if hotel companies decided to literally downsize?
03 NOVEMBER 2017 7:55 AM

Are hotel brand companies, owners, developers and operators missing out on the tiny house craze by not building and running tiny hotels?

It’s going to happen. Just wait. The growing craze for tiny houses—or at least for TV shows about tiny houses—will make its way into the hotel industry, creating collections of branded tiny hotels.

Now, tiny hotels do exist as independent hotels—if you count single-room structures that resemble cabins or miniature houses, are built on wheeled trailers or are actual decades-old campers. They’ve capitalized on the desire some travelers and homeowners have to live life, even temporarily, on a much smaller scale. People who live (or just imagine living) in small houses are looking to leave a smaller overall footprint on the world around them and like the idea of being able to just pick up and go—so long as the house has wheels.

Having a small guestroom isn’t a novel concept. There are already pod and capsule guestrooms, though they are housed within larger buildings. Still, their existence shows there are people who want to stay in them. If you look at the designs of some of the new brands coming out, guestroom size is getting smaller.

It shouldn’t be too much of a stretch, then, for the big brands to see an opportunity here. People like sustainable living. People like to travel. They don’t mind smaller rooms; they even seek them out as permanent residences.

On top of that, tiny homes cost several thousand dollars to build—a heck of a lot less expensive than a big hotel, which should give hoteliers a faster return on investment. Buy the right plot of land, build one or a set of these tiny hotels—with enough privacy in place so the guests aren’t stepping out on their tiny front porches and seeing each other in their bathrobes as they greet the rising sun—and watch as the bookings come in. Given that each tiny hotel or set of tiny hotels can only hold so many guests, that should boost demand, keeping occupancy high and allowing hoteliers to set higher rates. After all, these are pretty exclusive accommodations.

Those hoping to give their luxury guests something extra can boost that bespoke feel by purchasing several plots of land around the country, or even the world, with different tiny hotels from which to choose. Allow these luxury guests to choose the tiny hotel they want at the location they want and transport it there for them at the specified time.

It might sound crazy, but when you know there’s a guy out there who spent $1.4 million on clothes alone, you know there are guests out there who would open up their wallets without a second thought. Why? Because it’s a popular trend, but it’s much more exclusive (read: more expensive) this way. It wouldn’t take too many guests like these to see a return on that investment.

Hurry up and run with this idea. Once someone starts with it, others are sure to follow, further slicing the pie of guests who want to stay in tiny hotels. There’s bound to be an explosion of them over the coming years, so be the front-runner and set the tone.

What do you think of tiny hotels? Does this actually sound like a good idea to you? Let me know by leaving a comment below or reaching out to bwroten@hotelnewsnow.com and @HNN_Bryan.

The opinions expressed in this blog do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to comment or contact and editor with any questions or concerns.

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