NEW YORK (BLOOMBERG) - Renting a luxury hotel room for
just enough time to do what you need to do and get on with your
business-that's a treat that's only just now available, thanks
to a new app called Recharge.
A product of JetBlue's tech incubator, JetBlue
Technology Ventures, Recharge Labs officially launched in 2015 in
San Francisco. It expands to New York on April 24 with 16
luxury properties that range from the hipster-friendly to ritzy
midtown five-stars.
Prices in New York range from 83 US cents to US$2
(S$2.79) per minute (plus 14.75 per cent lodging tax). Let's say
your priority is getting some rest; that means you'll pay from
US$20 to US$46 for a 20-minute power nap, US$57 to US$128 for a
60-minute snooze-and-shower, and US$85 to US$207 for a 90-minute
stay in which you can catch up on email.
Short-term hotel rooms are good for plenty more than
just romance and napping. You can use them as quiet spots with
Wi-Fi to crank out work on deadline, places to quickly shower and
change as you shift from daytime to evening meetings, or as refuges
to rest up in after redeye flights. According to chief executive
officer and founder Manny Bamfo of Recharge Labs, they're a great
option for long-distance commuters and families, as well. "We've
been most surprised to see how useful it is for nursing mothers,"
he said.
How it works: Download the app (free on iPhone and
Android), find the hotel closest to you, and hit the "book now"
button. Your billing cycle starts 30 minutes after you've booked,
or once you pick up your key-whichever comes first-and ends when
you hit "check out" on the app. If you use the room for 47 minutes,
you're billed for 47 minutes. (Warning: You'll be billed an
overstay fee if you're caught hitting the check-out button
early.)
Recharge isn't the first app to try to tackle the
short-term room-rental market. It has competitors in
Dayuse.com and Hotelsbyday.com, both of which run as websites
and apps to serve many more cities, from Dubai to London to
yes, Manhattan. The difference? The two generally aim at a
less-expensive range of hotels and offer only predetermined morning
or afternoon time slots.
"Our two fixations are luxury and consumer control,"
said Mr Bamfo, who thinks of Starbucks Corp.-not Dayuse or
Hotelsbyday-as his main competitor. It's the easiest place to
visit among daily obligations, he claimed, whether you
want to be productive or rest-and regardless of how much time you
have to spare.
His trusty analogy: "Imagine if you could only park
your car for 24 hours, and that was just the only option. All we've
done is put a parking meter on some of the greatest hotels in the
world and allowed travelers to decide on their clock when to come
in and come out." A luxury hotel has a bed, bath, and shower, he
added. Starbucks has none.
Hoteliers win big, too. In fact, a majority of
Recharge hotels in San Francisco are turning six-figure annual
profits based on by-the-minute reservations; some are poised to
break seven figures soon.
"Every single minute that you're in a Recharge is a
more valuable minute than if you were a regular overnight
customer," Mr Bamfo told Bloomberg. Indeed, 24 hours at New
York's 1 Hotel Central Park would cost US$1,920, based on the
property's US$80 hourly rate on Recharge, but a regular
guest would pay roughly US$400 nightly.
"Measuring the hotel by vacancy, as opposed to
occupancy, is a futuristic way to look at hotel metrics," said
Barry Sternlicht, the veteran hospitality guru behind 1hotels.com.
"If locals eliminate vacant space in hotels, this is
something to evaluate. The initial results are encouraging."
ST