1 Hotel cover.indd - Nicola Cottam

Hot Concepts: Nite Nite
The Execution: The company settled on a pod concept, small rooms that could be prefabricated off-site, built
with high quality materials and a strong design theme aiming to suggest a “luxury yacht cabin” environment.
This has enabled the company to discard many of the features and services that drive up costs for hotels aiming
at a similar quality experience. In the case of the Birmingham hotel, which launched in early 2006, nitenite even
disposed of windows in the 104 rooms, reasoning that most guests will have little time for gazing at the scenery,
but will appreciate the 42-inch plasma TV and the high quality “memory foam” mattresses.
Because of this minimalist approach, location is even more important than usual for nitenite. The Birmingham
hotel is situated next door to the Mailbox complex, which houses many restaurants and shops. New Street Station
is a five-minute walk, as is the Bullring Shopping Centre. “The site for nitenite Birmingham was ideal for our
concept, and not only for its excellent location. The site was originally a disused space underneath an apartment
complex. Due to the lack of windows in the building, there was little demand for the site – this, however, suited
us perfectly,” says the company.
The company is researching different locations around the UK, such as London, Manchester and Bristol, and is
also considering locations such as Berlin and Amsterdam.
In keeping with its emphasis on style and technology, the company has given its website close attention. “We have
therefore made sure that not only is it efficient and detailed, but it is also visually attractive and there are plenty
of images, including spinning rooms and such, which give browsers a good idea of what to expect and a good
impression of our enlightened approach,” says the company.
“Even if we do say so ourselves, we’re pretty good at it, as 41% of our total revenue comes from direct online
sales!” says the company.
nitenite is aiming at occupancy rates of 66%, RevPAR of £26.53, and gross operating profit of 35%. Its targets for
managing costs, expressed as payroll against revenue is 25%. The company will fund future expansion by issuing
share capital and raising bank loans.
Future prospects: Among the future challenges, nitenite expects some competitors to copy some of its ideas,
although it is confident that it can stay ahead. Customer expectations will continue to put pressure on the company
to innovate. “People’s demands and expectations continue to grow and we want more and more for our money.
Due to tough competition in this sector, it may become increasingly difficult to keep ahead of the game by providing
higher levels of quality and a luxurious product, whilst maintaining the budget price,” says the company.
Finding good sites may also be tough in some locations, it says.
March 2007 Hotel Report Guide to UK Hotels 2007 l © William Reed Publishing 16