MSNBC.com has an article about microhotels in large US cities which are beginning to pop up. Sounds like the big brand name chains are considering them, although haven't really pulled the trigger yet.
Tiny rooms may fit shrunken travel budgets - Luxury- msnbc.com
I've seen people struggling to find a place to stay for a reasonable price in NYC several times, these hotels might be a great option. $89 for a private room is a great deal.
The trick, says Sean MacPherson, co-developer of The Jane hotel, is to make its 150 tiny single rooms — about 7 feet wide by 8 feet long — feel "charming and special" rather than simply cramped.
With no room for extra furniture, guests at The Jane — which is opening in stages between now and the end of the summer — stash suitcases and clothing in storage spaces above and below the narrow bed. A large mirror and a small window help stave off potential claustrophobia.
The "micro-luxury" touches at what was originally, in 1908, a hotel that rented cabin-like rooms to sailors for just 25 cents a night include 350-thread count sheets, a 23-inch flat-screen LCD television, DVD player, iPod dock and free wireless Internet.
And hotel developer Richard Born, who is involved with The Jane and a similar hotel in midtown Manhattan called The Pod, said he and his partner have been approached by more than one national hotel chain looking to expand the micro-hotel concept in the United States.