Readers have had mixed views on the prospect of hotels charging as little as £11.50 per night.
Booking company OYO, has ten hotels under its brand in the resort, with plans to sign up more to its model of offering technology, revenue management, backroom operations and investment for partner independent hotels.
But critics say that the group is large enough to operate at a loss, driving down prices to force competitors to close.
So what do readers on Facebook think?
"Walked past this place! Compared to the rest of the places in Adelaide St and Albert Rd it looks 5 star."
Andy B Serventi
"Places like this are the reason the hotel I worked for had to close. A race to the bottom."
"Great idea - I'm sure some of the homeless may be able to scrape together £11.50 for a bed and somewhere to shower. Rather than give them donations, perhaps book a room for them instead. Hopefully it will catch on in other areas. Well done."
"Just think how little the staff will be earning."
"About time we got a budget hotel here. Affordable breaks needed. As long as its clean."
"Cheap doesn't mean cheerful!!"