By: Phoebe Jones

Market Pressure Meets Structural Gaps

With global events like the 2026 FIFA World Cup and the 2028 Summer Olympics on the horizon, the U.S. hospitality sector, particularly in New York City, is preparing for an increase in visitor numbers. However, even in regular years, traditional hotel infrastructure faces challenges in meeting the diverse and evolving needs of urban tourism.

Enter CityNest Hotel LLC, a forward-thinking hospitality venture founded by real estate entrepreneur Evgeny Varfolomeev. With 240 rooms located at 125 Bowery in Manhattan, CityNest is more than just a hotel. It is a scalable lodging solution designed to serve high-demand cities through innovative density, modular design, and tech-enabled efficiency.

A Model Designed for the Moment, and Beyond

CityNest takes inspiration from the Single Room Occupancy (SRO) concept, a historically affordable urban lodging format. This model has been reimagined into a modern, legal, and guest-oriented version. The approach incorporates several key elements:

• Compact Rooms
  Designed with high density and efficiency in mind, these rooms offer privacy while maintaining affordability.
• Shared Amenities
  Communal spaces like lounges, kitchens, and workspaces reduce the overall footprint of the hotel.
• Automation
  User-friendly autonomous systems streamline check-in, housekeeping, and operations.
• Lean Staffing Models
  By using efficient staffing practices, CityNest manages to control operational costs without compromising on service.
  

Slated to open in mid-2026, just ahead of the FIFA World Cup, CityNest is positioned to accommodate a diverse range of travelers, including business professionals, essential workers, and tourists. However, CityNest is not simply a one-off solution for major events. Instead, it is designed as a sustainable long-term model for how urban hotels can adapt to rising demand and limited space.

Hospitality That Scales: Modular, Replicable, and Legal

The current hospitality market is divided between traditional hotels and short-term rentals. In this context, CityNest fills a gap by offering a middle ground.

Key features that set this model apart include:

• Legally Compliant
  Fully permitted, CityNest ensures it avoids the issues faced by unregulated short-term rentals (STRs).
• Mid-range Pricing
  Positioned between traditional hotels and Airbnb, CityNest offers higher quality control than typical short-term rentals.
• Efficient Land Use
  With a high room count and compact footprint, this model is especially suitable for dense cities.
• Modular Construction
  CityNest’s design is easily replicable and adaptable for cities like Los Angeles, Chicago, and Miami.
  

Designed for scalability, the CityNest model brings economic activity, employment, and hospitality access to urban centers across the U.S., while minimizing the overhead costs typically associated with larger hotel chains.

Economic and Societal Impact: A Smarter Way to House Visitors

CityNest is a response to multiple national and local policy challenges:

• Housing and Tourism Coexistence
  The hotel solution accommodates short-term visitors without displacing long-term residents.
• Event-driven Demand Surges
  CityNest’s adaptable design helps it respond effectively to seasonal and global tourism spikes.
• Urban Economic Development
  Job creation in construction, tech, and operations supports local economies.
  

At full capacity, CityNest properties contribute significantly to tourism revenue, support local businesses, and provide a replicable model for sustainable urban hospitality. This model can be easily implemented in cities experiencing similar pressures to manage demand.

A Return to Civic-Minded Hospitality

CityNest represents more than just high-density lodging. It’s about reimagining what modern urban hospitality could look like in the 21st century: accessible, intelligent, and grounded in community.

Evgeny Varfolomeev, the founder, reflects: “This is about more than one address. It’s a model for how cities can stay open, welcoming, and functional—even under the heaviest global pressure.”

CityNest’s philosophy is that cities shouldn’t have to choose between affordability and quality or scale and service. Through innovative architecture and data-informed design, CityNest demonstrates how modern hospitality can meet urban challenges in a sustainable manner.

Summary: A Blueprint for Resilient, Replicable Urban Lodging

As cities prepare for an influx of international guests, the need for flexible, legal, and economically sustainable hotels has become more pressing. CityNest offers a solution where cities can remain vibrant, welcoming, and functional, without sacrificing affordability, space, or policy alignment.

With its first site set to open in Manhattan and a scalable model designed for replication, CityNest aims to not only redefine hospitality in urban environments but also shape the future of urban lodging as we know it.