An idea for a budget hotel?

[v***@yahoo.com]

I have become quite frustrated by the high prices of hotel rooms in
downtowns of large cities such as NYC and Chicago. A meager 2-star
can easily run you $150/ night.. So I thought about a new idea
for no frills hotel for budget minded travellers like myself.

Basically it would be a cross between a youth hostel and a typical
hotel. All it would offer would be a closet size room with a bed
similar to what you may find on a train ( i.e a bed that doubles as
sofa/desk ). Showers would be shared. Bookings would be all online
and would require a $100 deposit which would be refunded after your
stay. My idea behind this would be to keep riff-raff out as I am
expecting room rates to be no more than $30 / night. By charging an
upfront deposit you keep the clientelle respectable .

I think there would be a demand for such a hotel as most
people are just interested in a quiet and safe place to sleep
that is in a good location. I know such hotels are commmon in Japan
where space is at a premium. Everybody has laptops so there is no
need for TV.

I was thinking to start off by purchasing one floor of a building,
say a few blocks from downtown chicago. How exactly do I get a permit
to tear down the interior and build my little rooms inside? What are
the zoning laws I need to be aware off? In other words is there a
step by step guide to opening a hotel in a big city I could follow?

[mlwyland]

I'd look at the business models of the Japanese hotels you want to
emulate. I'm not aware of anything like what you're describing in the
US, but I'm a business traveller, not a hotelier.

Speaking of which, you don't mention your experience in hospitality
management. If you're not experienced in this area, you should find
some people who are and ask them to review your business plan. Even
if they don't agree with the concept, they may be able to identify
some practical steps to make it more likely to succeed.

You'll also need a business attorney and a general contractor or
architect to assist you with the steps involved with purchasing and
renovating/remodeling space for use as a hotel. Your project will
require a 6-figure or 7-figure up front investment -- don't skimp on
professional assistance! There are hundreds of potential regulatory
barriers between your concept and its first day of guest occupancy.

I'm sure you've figured out how many rooms you'd need and what
occupancy rate at $30 a night to cash flow the personnel costs as well
as the other operating coss, debt service, etc.

One random thought that occurred to me is that there are enterprising
prostitutes who would gladly pay a $100 deposit to get a basic
sleeping room for $30 a night! If you want to keep out the riff-raff,
you may need some other strategies. <g>

[m***@jach.hawaii.edu]

Post by v***@yahoo.com
I have become quite frustrated by the high prices of hotel rooms in
downtowns of large cities such as NYC and Chicago. A meager 2-star
can easily run you $150/ night.. So I thought about a new idea
for no frills hotel for budget minded travellers like myself.

[...]

there was a place like that inside the Honolulu Airport. I don't
know whether it was put back after remodeling was done (or if the
airport remodeling is done yet). I found it a good place to stay if
you can't
quite make it home (coming from Europe, living on a neighbor island),
but I wouldn't want to stay in a place like that for any length of
time.
It's a good thing for staying over between when the airport shuts down
until the first morning flight home, but not much more.

I'm not one to spend big bucks on hotel bills, but if I have to I'd
want a TV and a kitchen (I take any 'long term stay' over a hotel room
any time), at least a fridge and a microwave if you want me to stay
for more than a night (and the TV).

IMHO your concept of hotel would attract rucksack tourists (not
that they are necessarily a bad bunch, but they might prefer a youth
hostel), passing through scientists (if they can't get funding for
anything
better, so, bank on graduate students, and most of the graduate
students
I met are science bigshots now, or (essential) staff at research
institutions.
None of those will come back unless under time pressure.), and, if
they
can get in, as the previous response mentioned some of them, shady
subjects.

It's not a place for downtown anywhere if you want to stay in
business.
In my opinion it has a place in airports or large train or bus
stations
(we don't have either one of the latter here, and "here" is within
about
2500 miles) where people pass through, and maybe want a shower
more than a place to sleep for 2-5 hours.

Aloha,
Maren
Palms, Etc.: Tropical Plant Seeds - Hand-made Jewelry - Plants &
Lilikoi
http://www.jach.hawaii.edu/~maren/palms_etc/
(still with a better than full time day job on the side)