The micro-hotel trend that is sweeping big cities across the world is moving into Adelaide, as Hines Property starts work on a $55 million hotel where budget doesn’t mean basic.
Hines Property recently received planning approval to build the city’s first micro-hotel at 274 North Terrace on the corner of Frome Street.
Hines Property’s managing director James Hines says the micro-hotel will fill a gap in the Adelaide market for travellers who want stylish yet minimalist accommodation.
“Micro-hotels are perfect for people who want a quality place to stay and are happy to trade excess room space for a lower room cost,” Hines says.
The micro-hotel or ‘pod’ concept originated in Japan in the 1970s, but has since evolved into one of the latest trends in hotel development and design.
Footloose Millennials and Gen Z may be on a budget, but that doesn’t mean they want basic. ‘Poshtels’ – posh or boutique hostels – increasingly offer quirky design, high-tech touches and Insta-worthy experiences.
In response, many of the large global hotel chains are responding with beautiful design, the latest technology and destination dining for travellers who would rather linger in the lobby than their rooms.
Hines Property’s hotel will feature high quality, small rooms designed for short-stay visitors and young
tourists. The 15-storey, 53-metre-high development will comprise 253 compact rooms ranging in size from 13 sqm to 28 sqm.
Designed by Woods Bagot, the hotel will also include a gym for guests, a ground-floor lobby, lounge and bar.
“Micro-hotels are proving particularly popular with business and young travellers who want to stay in the heart of the action without spending a fortune to do so,” Hines says.
Hines says the “compact yet impeccably designed rooms” will be located opposite Adelaide’s new tram extension. It “really an ideal site to build the city’s first micro-hotel”.
Hines Property is the largest owner of hotel accommodation in the Adelaide CBD, with the 274 North Terrace development set to increase its hotel development portfolio to more than 1,000 hotel rooms, which includes the five-star Pullman Adelaide Hotel and the premium economy Ibis Adelaide Hotel.
Construction is expected to commence next year ahead of opening in 2021. Up to 200 jobs will be created during the construction period.
Hines says a worldwide search is already underway to select an operator for the hotel.