The Rise of Poshtels

When New York-based travel writer and contributing digital editor at Condé Nast Traveler Cynthia Drescher planned a trip to Miami a few years ago for Art Basel, she faced major sticker shock: Hotels cost around $500 per night for the duration of the international art show. So, Drescher flexed her budget travel skills and researched alternative accommodation options. She wound up staying at the newly opened Freehand Miami, which cost $35 per night before the festival and $135 during the festival.

[See: 11 Easy Ways to Slash Travel Costs.]

Why was the Freehand so cheap, comparatively? The Freehand, which also has a property in Chicago and plans to open a branch in Los Angeles, isn’t your traditional hotel. It’s part of a new breed of accommodations called poshtels, a hostel-hotel hybrid concept that integrates the affordability of hostels with the upscale interior and design of luxury hotels. The Freehand Miami features work by Miami Beach artists on the walls and a backyard cocktail bar, the Broken Shaker.

Like many poshtels, the Freehand offers shared rooms or slightly more expensive private rooms, all with free Wi-Fi access. Drescher says she’s a regular at the Freehand and has stayed at several poshtels in Asia, from First Cabin Kyoto Karasuma in Japan to Porcelain Hotel in Singapore. She frequently books a shared or private room, depending on how much work she’s planning to do.

Bucking the stereotype of hostels as dingy or sketchy, the poshtel concept has caught on in major European cities and has long been popular in Asia. And in the past few years, the concept has been making waves in North America. “When people say ‘hostel,’ you think young, party crazy, not clean,” says April D. Thompson, a digital marketing consultant, travel coach and the blogger behind the travel site Absolute Travel Addict. According to Thompson, poshtels are best suited for “people who do want the community aspect but don’t want that [stereotypical] hostel experience.”

Social events are commonplace at poshtels. While staying at the Freehand Miami for Art Basel, Drescher hobnobbed in the property’s courtyard. “I felt very much a part of the Art Basel community,” she says. Meanwhile, the Generator hostel group’s portfolio currently includes 11 properties across major European cities such as Amsterdam, Berlin and Dublin. Generator plans to open its first U.S. property next year in Miami. Prices vary by property and season, but the average price for a bed in a shared room at a Generator property is about $27, according to Fredrik Korallus, CEO of Generator Hostels.

[Read: How to Save on Your Hotel Stay.]

Rooms at the Generator come appointed with bathrooms and higher-category rooms include bathrobes and towels, Korallus adds. Shared rooms sleep six to eight people. “Our traveler is looking to connect with other travelers, engage with local tastemakers, experience the city and neighborhood vibe,” he says. “In addition to the millennials, we get the young at heart empty nesters looking to be part of the scene: individual travelers and group travelers.”

Each Generator location draws its design-forward spaces and food and drink inspiration from its local surroundings and unique history. Korallus points to the Generator Amsterdam, which opened in March 2016. “The building served as the University of Amsterdam’s science and zoological building,” he says. “Its Auditorium Bar still has the original tiered seating and a chandelier made out of original lab beakers, found on site,” he adds. The property also serves coffee sourced from a local artisanal roaster.

Of course, lower room rates often translate to fewer amenities than you would expect at a brand-backed hotel, but that doesn’t bother Drescher. “There’s no over-the-top concierge service, no house cars that’ll take you around,” she says, adding that she’ll use Google Maps for directions or go online for food recommendations rather than asking the concierge. “It’s not the five-star comprehensive service of a larger chain hotel, but it’s perfect for what I need,” Drescher adds.

Some brand-backed chains are also getting into the poshtel trend. Regal Hotels International, a Hong Kong-based hotel group, has several iclub properties, which feature compact, low-priced rooms designed for short stays, in Hong Kong and Zhengzhou, China.

Most of today’s poshtels feature a bar, cafe or other eatery to order food or drinks and socialize with fellow travelers. The communal kitchens typically found in hostels that enable travelers to prepare their own meals are less common in poshtels. That’s one of the reasons that Thompson tends to favor apartment rentals through Airbnb or other vacation rental sites, rather than a hostel or poshtel. The vacation rental option is also appealing to budget travelers because they offer “the space and amenities of home,” Thompson points out. “Having a washer/dryer and a full kitchen is really helpful for me and if I’m with multiple people. It’s just a little easier to spread out and have a space that feels like home,” she says. If you’re flying solo and you don’t mind crashing on a friend’s couch, couch-surfing might be another budget-friendly option that provides an easy way to connect with locals or other travelers.

[See: 12 Ways to Be a More Mindful Spender.]

Thompson sees today’s growing alternative accommodation options, including poshtels, apartment rentals and couch-surfing spots, providing travelers with cheaper lodging choices. With more varied accommodations available to match any budget, “hopefully it’ll make it a little easier for the average person to see the world,” she says.

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The Rise of Poshtels originally appeared on usnews.com

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