Ikea is already well known for its affordable and stylish home furnishings, but now the retail giant has set its sights on the budget hotel market. The world’s largest furniture retailer, based in Sweden, recently announced that it intends to build at least 100 hotels throughout Europe. Capitalizing on its bargain style reputation, Ikea calls the developments “budget design” and intends to bring the boutique hotel experience to travelers at a more wallet-friendly price.
Inter Ikea, the brand that owns the furniture retailer, says that the hotels will not carry the Ikea name, nor will Ikea run them. Instead, an established hotel operator will manage the project. Inter Ikea plans to build in multiple European markets, including Germany, where the first hotel location is soon to be announced, as well as the UK, Poland and the Netherlands.
According to the Financial Times, budget design hotels are one of the fastest growing sectors of the hotel industry. Motel One, a hotel chain based in Munich, Germany, has 39 budget design hotels.
This latest development is not Ikea’s first foray into the property market. The company also has investments in other real estate ventures, including Strand East, an urban development project near the Olympic Park in London and other properties in the Netherlands, Poland, Belgium, Lithuania, Latvia, Romania and Spain.
+ Inter Ikea
via Financial Times and Freshome
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