In an era of rising costs and Airbnb competition, hotel chains are shrinking room sizes—but not profits. The Wall Street Journal reports that today’s hotel rooms are designed to do more with less, as operators look for ways to boost revenue without sacrificing guest satisfaction.

Gone are the bulky closets and fully stocked minibars. In their place? Sleek, minimal spaces that focus on essentials. Leading this shift is Marriott’s Moxy brand, where rooms are less than half the typical size, yet bring in up to 20% more revenue than average.

“It’s about stripping away what guests don’t use,” said one top hotel designer. “People don’t need drawers, ironing boards, or bathtubs. They want clean design, comfort, and connectivity.”

These compact rooms may lack space, but they gain in efficiency and affordability, appealing to both younger travelers and budget-conscious professionals.

And with occupancy rates stabilizing across the industry, this lean-luxury model may define the next generation of hospitality—where less space equals more profit.