TAIPEI: Boutique hotels are becoming increasingly popular in Taiwan, even as big hotel chains see a fall in demand for rooms.

Taiwan's five-star hotel market is finding it tough in the current sluggish economic climate, but the so-called budget hotels are springing up all over Taipei.

To stand out from the competition, one chain is combining creativity at an affordable price.

Wei Chou-Fu, vice-general manager, Taipei Inn Group, said: "We realised it is a market worth investing in. Most people want to see lower hotel fares and good service quality. We decided to create affordable hotels with quality and creations that are beyond expectations."

The privately-run hotel, licensed to accommodate foreign diplomats during the sixties, has now undergone a face-lift and has been transformed into a bright and stylish inn, attracting tourists from around the world.

Though the hotel sacrifices space, it has not done so at the expense of good design. Visitors will see guestrooms decorated with a unique style of art. And the hotel says the trick is to make its 30 tiny rooms feel charming and special rather, than simply cramped.

Mr Wei said: "The concept is to 'create hotels that are more than hotels'. We put creativity into guestrooms, building up a sense of fashion and Taiwanese culture. We hope to deliver the idea of Taiwanese culture and to exceed tourists' expectations."

One of its guests said: "I think the hotel's professional service is the biggest attraction. I enjoy it a lot."

Rooms with themes like the grass garden and the artificial winter capsule are the most talked about among guests. The hotel plans to invite more artists to do up another 25 rooms this June.

Mr Wei said: "The hotel is a showcase for artists. We have over 100,000 guests staying in the hotel chain each month. They then pass on their thoughts about the hotels and art works via blogs or word-of-mouth to the world. That's the invisible value."

From as little as US$70, tourists say they enjoy both a good night's sleep as well as an artistic experience. So it is no wonder that demand is rising steadily.

- CNA/yt