We know the recession is having its effects on just about everyone, but the Alexander Inn Philadelphia has just come up with its own stimulus plan; hotel rooms for $1. 

Yes, you heard that right. The Guest Stimulus Plan is good Sun - Thurs and offers five of the hotel’s 48 rooms at a $1 rate. The promotion is set to run through June 11 and is getting major publicity as you can imagine.

According to innkeeper John Cochie, “It’s just been amazing. People telephone us and ask, ‘Is this for real, and how many nights do I have to stay to get the dollar rate?’ They’re shocked when they’re told they just have to stay one night.”

Room rates throughout the country are dropping as the recession continues to have major effects on lodging and occupancy. It’s a very difficult time for this industry and new, out of the box, ways of promoting to get guests are beginning to surface.

How did Cochie get the idea? From a meeting with other hotel general managers. It just came to him, he says.

Normal room rates at the Alexander Inn go for $119 - $169 daily. Rooms may only be booked 30 days in advance.

Is the plan working? According to Cochie, yes, and in a big way. Guaranteed reservations have doubled, website traffic is up 274%, and the phones have been ringing off the hook. Just goes to show that thinking creatively can often lead to big profits.