Micro hotel rooms in NYC - a new trend?

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"Tiny rooms may fit shrunken travel budgets
N.Y. hotel offers luxury treatment, micro-sized rooms for under $100"
http://www.msnbc.msn.com/id/29836472/

Quote:
NEW YORK - A New York hotel with luxury sheets and state-of-the-art audio for less than $100 a night? All you have to sacrifice is a bit of privacy and a little — well, a lot — of space.

Moving beyond budget accommodations to an idea that borrows from a ship's berth or a train's sleeper car, developers are gambling that in tough times travelers looking for a little pampering at lower prices will embrace micro-hotels.

The concept of an entire hotel room the size of a suburban bathroom has spread across Europe in recent years. And as the U.S. economy deteriorates, interest in the idea has grown, especially in high-priced markets like New York City — where there are fewer options for budget travelers.

full article

It says there aren't many budget options in NYC, but there are something like 55 hostels with dorm beds starting at under $20, and hostel private rooms starting at about $50...

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