The city of Adelaide will soon welcome its first micro-hotel with leading developer Hines Property receiving planning approval for a 15-storey building at 274 North Terrace on the corner of Frome Street.

The latest trend in the hospitality industry, which is sweeping big cities across the world, micro-hotels are designed to provide high quality compact and economical accommodation to short-stay guests and young tourists.

Designed by global architecture firm Woods Bagot, Hines’ $55 million micro-hotel will offer 253 compact rooms ranging in size from 13sqm to 28sqm, with facilities also including a gym for guests as well as a ground-floor lobby, lounge and bar.

Observing that the 274 North Terrace micro-hotel will fill a gap in the Adelaide market for travellers seeking stylish yet minimalist accommodation, Hines Property managing director James Hines said, “The micro-hotel trend is booming in cities across the globe, so we’re bringing the concept to Adelaide, which is really exciting.

“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.

“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 explains that the new hotel is ideally located between the East End and North Terrace precincts, opposite Lot Fourteen and the new tram extension. The project is also expected to create up to 200 jobs during the construction period. A worldwide search is already underway to select an operator for the hotel, he added.

Construction is anticipated to commence next year ahead of opening in 2021.