LONDON—“We compare it to the Mini Cooper,” says Colin Hart, CEO of nitenite, a new, UK-based “pod style” hotel concept that shrinks luxury accommodations into approximately 75 sq. ft. (7 sq. m). “It’s like a micro 4-star. We based it on a luxury yacht cabin—very intimate, cozy. Plus the rooms are completely soundproof. It’s a superb space.”

According to Hart, the concept was conceived by a real estate developer who, after traveling around Europe, decided the rooms available to him were not a good value for the money. Therefore, he sought to create a new concept that would offer a “very cool room with everything that you need at an affordable price.” After three years of research and development, the first nitenite hotel opened in Birmingham, England, in March 2006 as a testing ground for expansion across Europe and the United States. The second nitenite property is under construction in Berlin and will offer 230 guestrooms averaging 120 sq. ft. (11 sq. m). “It’s an office building conversion, so the rooms are bigger,” Hart says, adding that a key component to the concept is its design and construction flexibility.

Other properties under development include the first London hotel in the Waterloo area as well as three more in London, and the first U.S. hotel in New York. The goal is to have 30 nitenites across Europe—namely in Germany, Spain, Italy and the UK—and the United States—New York, San Francisco, Boston and Los Angeles—over the next five years. After the first 10 or so properties, Hart says the company will look to begin franchising.

While comparisons to such other new, pre-fabricated concepts like easyHotel are natural, Hart says nitenite is clearly differentiated by its focus on the upscale customer. All guestrooms feature cherry wood and leather finishes, upscale bedding with high thread-count Egyptian cotton sheets and queen-size mattresses, 42-in. (107-cm) plasma-screen televisions with ample in-room entertainment options, wireless Internet connectivity, heated bathroom mirrors (so they don’t fog up) and “power showers.” In addition, Hart says much emphasis was placed on lighting and creating a centralized control panel near the bed. “There are no exposed lights and all the lights are softened,” he says. Public spaces, meanwhile, will be more comparable to other 4-star boutique concepts with a high-touch staff—no kiosk check-ins here—and a mixed-use reception area that will feature light food and beverage options. Rates in Birmingham average £40.

The concept is geared predominately toward business travelers—those road warriors who often spend very little time in their hotel rooms. And because of the hotels’ small footprint, nitenite product is ideal for city-center development—again to the benefit of business travelers. The concept has been designed for both new build—the pre-fab pods—and conversions, Hart adds. Construction cost for the Birmingham property, including land, was £6.1 million.

Another appeal of the nitenite concept, Hart says, is its “greenness.” “The hotels are so well insulated that all rooms can be heated with the TV, and we’re using all low-voltage lighting and electric,” Hart says, adding that the air system is also very sophisticated—important in such small spaces. Further, construction waste from such projects averages only 5%, whereas a conventional build can have material waste by as much as 20%, he says. In addition, the company will be using solar panels and convection heating systems when able.

In terms of marketing efforts, Hart says currently 38% of bookings for its first hotel are coming via the Internet. To date, much of the success of the Birmingham property has been generated by word-of-mouth referrals and repeat customers.