There are a lot of new developments in the budget segment. On one side are boutique design concepts, which bring a luxury feeling to small rooms. On the other side are developments in the low-budget sector.
Brands like Yotel or H2 (another German brand) offer small, sometimes you may say tiny, rooms. H2, for example, offers rooms for four guests in approximately 20 square meters. The room is equipped with two bunk beds. H2 calls itself a hotel, not a hostel.
The pictures show a room at H2 in Berlin for four people. If the room is occupied only by two guests, the upper beds can be folded up and are out of the way.
In some cities like Vienna, this causes issues with operation permits, which are different for hotels and for hostels. The permits for operating a hotel require larger rooms than for a hostel. If you call yourself a hotel, you have to follow the respective rules even if you are actually a hostel-type operation. I am sure that in other cities there are similar issues. It shows that regulations are not able to follow the speed at which new products are being generated.
Are there similar regulations for hostels and hotels in other cities? Please let me know.