London is being targeted as one of the first cities for a new Hilton urban ‘micro-hotel’ brand being created as an option to hostel accommodation.

Motto by Hilton is designed as an affordable lifestyle brand by the hospitality giant as it approaches its 100th anniversary.

The hotels will be located in prime neighbourhoods, with Marylebone in the capital earmarked for a 100-bed Motto by Hilton.

Demolition on the site has started and with construction planned from January to target an opening in 2020.

Other cities under consideration include Dublin, Lima, Savannah, San Diego, Boston and Washington DC.

Prices will vary by market, but each property will offer competitive rates to make the brand a viable option for travellers who typically stay with friends or family or seek out temporary housing options when traveling to urban destinations, according to Hilton.

The hotels will allow guests to split payments between more than one person at the time of booking.

Research by the company found that travellers who stay in hostels do not like rooming with strangers and often book just with their friends or family. They want more from their hostel experience but are limited by current options available.

Hilton then evaluated the emerging lifestyle hostel model globally to understand the opportunity to “enhance the shared room concept”.

Motto bedrooms will be an average size of 163 square feet with space-saving features such as beds which pull down from the wall, shower and toilet stalls, and multi-functional furniture that can be stowed away when not in use.

Guests will have the option to book multiple connecting rooms in advance.

Rooms will deploy technology that can control temperature, lighting, TV and window blinds from the mobile app of the Hilton Honors loyalty scheme.

Hilton president and CEO Christopher Nassetta said: “Innovation is in our DNA, and as we embark on our 100th year as a company, we are innovating more than ever before.

“With Motto by Hilton, we are bringing to market something the industry has never experienced with its flexible and affordable room product, desirable locations and guest-empowered service.”

Chief customer officer Jon Witter added: “Following extensive market research that focused on consumers’ needs and wants, we discovered the opportunity for a brand that offers travellers a trifecta of centrally located, reasonably priced and less traditional lodging that provide a one-of-a-kind experience.

“These findings led us to create Motto by Hilton, a flexible environment that allows guests to design their stay, their way.”