The Metropolitan Manila Development Authority (MMDA) is bent on closing down its PGMA-MMDA Workers Inn, formerly Gwapotel because of low-occupancy rate brought by public’s negative response to the capsule bed design, which was based on Tokyo's capsule hotels.

MMDA deputy chairman Cesar Lacuna said the city officials are reaching into consensus on a closure plan, citing the low patronage of the agency’s second workers inn located at the Jose Abad Santos in Tondo, Manila. 

Lacuna said they are contemplating to transform the establishment into a satellite office.

Lacuna said since the location of the dormitory-style hotel in Tondo, was a factor in the continued poor business performance compared to the first PGMA Workers’ Inn located at the former National Power Corporation building on Bonifacio Drive, Port Area, Manila.

It has a continuing rise in the occupancy rate, accommodating more than 1,200 guests daily when it has only 714 double deck beds.

Amante Salvador, MMDA social service chief, said earlier that since it opened in 2008, the dormitory-style hotel in Tondo only accommodates 380-400 guests, when they have 711 capsule bed design, which was based on Tokyo's capsule hotels where guests stay in small sleeping space.

He said the capsule bed design where guests stay in small sleeping space was not a hit among the clients.

“Some guests feel like sleeping in a coffin which is a big turn off to them, while others like it because they could not smell the foul odor of the feet of other guests,” stressed Salvador.

Salvador said the monthly rates could not cover the inn's electricity and water expenses, P200,000 monthly rates plus the maintenance of the facility.

The inn on Bonifacio Drive, Port Area, has become a household name among low-income workers, and out-of-town travelers while providing cheap but decent accommodations to workers whose place of residence is outside Metro Manila.

Students, ordinary workers, vendors, small entrepreneurs, white collar-job employees and other transients from the provinces who are doing business in Metro Manila are their regular customers.

The Gwapotel is a flagship project of then former MMDA chairman Bayani Fernando.