The room could be as small as a carpark space, but such accommodation options are being increasingly offered at mid-tier hotels.

With facilities like a bathroom and frills such as tasteful finishes and a television set - all at a lower rate - such rooms have been a hit with travellers looking for value.

Developers eager to maximise space and offer cheaper rooms have rolled out no fewer than six such hotels recently.

They include the 241-room Ibis Singapore Novena in Irrawaddy Road and the 170-room Parc Sovereign in Albert Street.

Industry observers say the trend follows that in other cities such as London and New York, where land is precious.

Mr Robert McIntosh, the executive director for the Asia-Pacific at real estate consultancy CBRE Hotels, said that with the price of land going up here, hotels would want to maximise returns by making their rooms more space-efficient.

He added: 'The expansion of travel in Asia with the launch of low-cost carriers has also opened up a new range of hotel users prepared to accept smaller rooms if they are of a good quality and priced affordably.'

Mr Eddie Lim, executive director of the Fragrance Group of hotels, which developed the Parc Sovereign, said its small rooms suit tourists.

He said: 'They usually stay for just a few days, and don't have a lot of luggage, so they don't mind a smaller room if the rate is good.'

Mr Anthony Lim, chief executive of inbound travel agency Rest & Relax Holidays, said his customers are increasingly favouring such rooms over those in budget hotels.

He added: 'They find them comfortable, and some even extend their stay by a night because the room is cheap.'

While the six mid-tier hotels offer rooms in a range of sizes, the smallest that most have are similar in size to those in budget hotels.

They range in size from 15 sq m to 18 sq m, take up to two guests, and are priced from about $130 to $170 a night - at least 10 per cent less than the average room rate of $189 for mid-tier hotels.

The prices also rival those of budget hotels, where rooms go for between $120 and $150 each at a hotel in an accessible location.

At the mid-tier Porcelain Hotel in Mosque Street, its smallest rooms range between 7 sq m and 9 sq m, and the rate is around $109. A carpark space is about 9.6 sq m in size.

Ms Hu Ying Na, manager of the 138-room hotel, said its smallest rooms are the most popular. 'Guests don't mind as long as it fits their budget,' she added.

Economy-sized rooms at other mid-tier hotels enjoy an occupancy rate of up to 95 per cent, which exceeds the overall average occupancy rate of 86 per cent for hotels across different categories.

Hotels do their best to make the small rooms feel spacious.

The Porcelain Hotel mounts flatscreen TV sets on the walls to save space, and lowers the heights of the beds to make the ceilings appear higher and the rooms bigger.

At Santa Grand Hotel Lai Chun Yuen in Trengganu Street, a stage, where traditional Chinese music performances are scheduled, offers guests a space to relax outside their rooms, which may be as small as about 11 sq m.

Ms Lee Lie Yen, the director for hospitality at the Singapore Tourism Board (STB) and a member of the Hotels Licensing Board (HLB), welcomes the greater room options for travellers.

She said the HLB conducts regular checks to ensure that hotels comply with licensing regulations, which include standards of hygiene and size of rooms.

She added, however, that the regulations were enacted in 1974, so the board does consider other factors, such as 'the changing profile and needs of visitors and the resource constraints of Singapore'.

The STB was unable to confirm if it had previously taken action against hotels with rooms smaller than 11 sq m, which is stated in the regulations as the minimum size.

Hotels with rooms smaller than the stipulated size said they were unaware of the ruling. They added that the authorities would have known the size of their rooms based on their applications, but no one had raised it as a problem.

What is for sure, however, is that the supply of economy-sized rooms will continue, with about half the hotel rooms to be launched next year being small, mid-tier ones.

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