The Little National Hotel, which opens on September 1 in Barton, combines five-star finishes with smaller rooms to create "affordable luxury".

"There is an international movement toward this new category known as affordable luxury hotels that is being spearheaded in Europe," Jure Domazet, managing director of Doma Group said.

"It recognises that there is a community of travellers that seek a highly tailored and beautiful product that provides the essentials of accommodation with no compromises, but at a new price."

The hotel is the fourth in the Realm precinct, incorporating Hotel Realm, Burbury Hotel and Brassey Hotel, which the Doma Group have labelled an "urban resort", and Little National Hotel guests can access the gym, spa and restaurants throughout the precinct and even charge it back to their room.

Each room at the Little National is only 17 square metres, but clever use of space and a floor-to-ceiling, wall-to-wall window in every room allows plenty of natural light and make the rooms feel larger.

All 120 rooms are identical, and each has one of the chain's signature super-king beds, 20 centimetres wider and longer than a normal king, which have so far only been rolled out in the recently refurbished Brassey Hotel.

The space for relaxing that doesn't exist in the rooms is instead provided in the form of two public spaces, with lounges, televisions, fire places, and work spaces. There is also coffee, snacks and an evening bar service for guests and the building will get its own cafe later in the year.

Other than the reception on the ground floor, the first four levels of the building house 500 parking spaces which is already open to the public and will help ease some of the parliamentary triangle's parking woes.

Patrick Lonergan, Doma Group's director of hotels, said other hotel chains from around the country have already visited Little National to check out the new accommodation concept.

"This is the first of its type in Australia, what you're seeing in the style of the hotel room," he said.

"In Europe, citizenM is the closest aligned to what we're doing here, which is cool funky little spaces in prime locations and they also come with the smaller price tag."

Doma Group is currently building another similar hotel in Brisbane at Southbank.