Legendary hotelier Ian Schrager has unveiled the first hotel of his new low-cost 'Public' brand.

The Public Chicago, which had a limited opening this week, is Schrager's reinterpretation of the Ambassador East Hotel, a faded but central property in the center of the windy city.

Designed to mix elements of luxury, boutique and select service properties, Public's big selling point is the combination of sharp design with low cost - rates for next week go from $195 a night.

Inside, rooms are simple but stylish, each individually furnished to make the most out of the rather compact room dimensions in the historical building.

Inside, innovations include 'Public Express' room service, which replaces traditional expensive room service trays with rapid, low-cost meals delivered in paper bags, simple but functional desk areas and ultra-low beds.

A new Jean-Georges Vongerichten food concept has also been opened in the hotel's old Pump Room restaurant, offering 'reasonably-priced' dishes throughout the day and a historically-inspired supper club restaurant/bar in the evenings.

Public follows hot on the heels of another Schrager brainchild, the Edition chain which was conceived in association with global hotel giant Marriott.

However, only two Edition properties have opened to date in Honolulu and Istanbul, and with Marriott currently involved in a very messy dispute with one of the properties' owners (recently resulting in the name of the hotel being changed), Schrager is clearly focused on the road ahead.