Two segments of the travel lodging may be moving toward each other, with the growth of hotel brands like Marriott's Moxy, which offer relatively small rooms with a 'lifestyle vibe' and upgraded hostels like the Generator chain that still offer small rooms or shared accommodations, but with updated style and amenities.
That's a different market from the discount hotels that offer larger traditional rooms for families and travelers who may intend to spend more of their trips in their rooms rather than using them as a base to sleep and change. This new 'lifestyle premium economy' segment focuses more on life outside the room with chic bars and eating places.
Generator, which has 15 locations, mostly in central city areas, has just taken a big step; up to now, it has owned and operated its facilities, but has just announced that it is taking management control of the former Paramount Hotel in Times Square, a location not known for lower-cost room options.
The hotel closed during the pandemic and was briefly slated to become supportive housing units. It will now be reconfigured for Generator, which says it competes with three-star hotels at half the cost, partly through very tight cost controls.