Close to the seedy sex shops on Commercial Street, next to the College of Central London and not far from the many bars of trendy Shoreditch, popular with the arty East End crowd, is the new Hoxton hotel.

Described as an “urban lodge”, the hotel opened last week, the brainchild of Sinclair Beecham, co-founder of the Pret a Manger sandwich chain. It has 205 rooms priced from an incredible £1 a night to £119, depending on how early you book, adopting a hotel version of the low-cost airline pricing model.

“ROOMS FOR LESS THAN A SARNIE!” ran headlines in the run-up to its opening — although all the £1 deals have now been snapped up and cheapo guests will have to keep a sharp look-out for the next batch; more £1 promos are promised soon.

But even if you fail to get the best price, this new-build red-brick structure on the site of a former car park is still pretty inexpensive for a trendy place to stay in the City.

The reception is in a large open-plan room with high ceilings. To the left is a stone, lodge-like fireplace and a huddle of leather chairs; to the right, the Grille restaurant with caramel leather booths and tea candles.

Music switches from P. J. Harvey to Michael Jackson as I wait ten minutes for the receptionist, who mutters “bear with me”, and gives me room 121. This costs £59, with a Pret breakfast of a yoghurt, banana and fresh OJ thrown in.

The decor is tasteful with a jellybean-shaped desk, a flat-screen TV, free wireless internet (which does not work, even after a “technician” visits), big bed with red bordello-style reading lamps, stripy charcoal-and-cream carpets, and a charcoal-tiled shower-room.

In the Grille, our waiter is American. “What do you guys want to drink?” My mate, a tough customer (he’s from Yorkshire), asks for a bitter. There are no bitters, says the waiter. “Now I’m bitter,” says Yorkshireman, bitterly.

We order a mojito and a caipirinha (both good) and then plaice and steak (also good). But Yorkshireman is unimpressed by his sticky toffee pudding. “This is very ordinary,” he mumbles disdainfully.

The ambiance is good, with a laid-back style, “hi guys” service, and iPod shuffle selection of music. It all reminds me of the trendier spots on the west side of Manhattan.

Despite the dodgy internet, an overflowing shower, a room service order that didn’t come and the lack of bitter, I liked the Hoxton. It’s different. And once the teething faults are sorted, it could be excellent.

Bottom line: Tom Chesshyre paid £59 for a double.

Best thing: Trendy, but inexpensive.

Worst thing: Internet failure.

Sampling the fare: Three courses cost £109 for two.

Access all areas: Yes.

Need to know: The Hoxton (020-7550 1000, www.hoxtonhotels.com), 81 Great Eastern Street, EC2.

Food: 6 out of 10.

Service: 6 out of 10.

Room: 7 out of 10.

Value: 9 out of 10.

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