Last updated: 11:00 AM ET, Wed August 10 2016

New Micro-Hotel Brand Arlo to Open in NYC

Hotel & Resort | Patrick Clarke | August 10, 2016

New Micro-Hotel Brand Arlo to Open in NYC

PHOTO: Meeting room at the Arlo Hudson Square, which is scheduled to open Sept. 6 (image via Facebook). 

New York City is set to welcome a pair of new micro hotels as many in the hospitality industry aim to combat declining revenue per available room (RevPAR) figures in the Big Apple.

Arlo Hotels, the creation of London-based Quadrum Global, will debut in Manhattan on Sept. 6 with the opening of the 325-room Arlo Hudson Square. The 250-key Arlo NoMad will open approximately one month later.

The two properties will be unique in that each guestroom will be no larger than 165 square feet.

But what guests lose in terms of space they'll gain in luxury and overall cost.

"To make a project viable, one has to either charge significantly more money for the same room by positioning it as luxury, or one has to fit more rooms on the same land plot," said Quadrum founder and CEO Oleg Pavlov via Bloomberg. "Our guests, we hope, will appreciate that the room is small but that it has everything they need."

"We essentially replicate a boutique hotel in a much smaller package."

READ MORE: Broad Appeal for New York's Pod Hotels

Room rates for the Arlo Hudson Square start at just $199 and all rooms come equipped with a 47-inch LED television. The guestrooms capitalize on their limited space as well, with mini refrigerators stored inside of nightstands and work desks attached to the wall.

The idea is that guests will be spending most of their time in the hotel's public spaces, which include a rooftop bar, indoor and outdoor lounges on the ground floor, a game room with free Wi-Fi and 24-hour coffee and a full-service restaurant down the road.

Although Arlo won't be the first micro-hotel chain to open in New York, its upcoming launch signals a trend that's likely to benefit travelers seeking a luxury stay in a popular market without breaking the bank.

Meanwhile, for the industry, the micro-hotel emergence highlights an opportunity to overcome expensive land costs and bring back higher returns without jacking up prices. That's critical with more and more rooms popping up across the city and home-sharing services like Airbnb adding to the increased selection.

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