Two micro-hotels to open in NYC's swanky Manhattan

It's no secret the hotel business is having to up its game to battle against ever-popular Airbnb, with New York being no different.

Staying in a hotel is seen as being oh so 2004.

But Quadrum Global, a London-based hotel company, have snapped-up two building in Manhattan in New York and will transform them into micro-hotels, squeezing in 575 rooms.

Each room at the Arlo mini hotel is no more than 50 square metres, with a king size bed fitting between each wall, mini refrigerator tucked into a nightstand and wall-mounted peg boards for hanging clothes.

There's a desk but it pulls out of the wall.

It's all very compact, very Tokyo but at the same time, pretty slick.

The lounge area

The first Arlo will open in the Hudson Square neighbourhood in early September, in time for New York Fashion Week. The second will open in October on 11 east, 31^st St.

So, why micro-hotels? Well, the current market means that hotels aren't pulling in the visitors they used to.

We've seen the redefinition of luxury as a result. No longer is five-star good enough, we want it to come with some serious exclusive extras. Luxury car use, tailor-made itineraries and even VIP lifts for private floors.

And now, Oleg Pavlov, founder, says the other option to make money is increasing the number of rooms in properties, hence the rise of the micro-hotel, a concept that Tokyo has offered for the past two decades.

"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," Oleg said.

The lounge area at the Arlo

At the Arlo, there's a rooftop bar, lounges and a bar that specialises in bourbon. There's also free WIFI and a 24-hour coffee counter.

And a room with twin bunk beds will be available at $199, and a room with a queen and terrace will cost $339.

It's perhaps on the pricey side though. Sydney will be getting its own micro-hotel in the CBD on George Street in November, with stays costing between $30 and $50.

A little more reasonable, but it isn't Manhattan.