Ikea, the world’s largest furniture retailer, is planning to develop a range of budget hotels.Inter Ikea, the company that owns Ikea’s intellectual property rights, is looking at potential sites across Europe for the hotels, the Financial Times reported today.
More than 100 locations are being considered for development by the renowned Swedish company, including sites in Britain, Germany, Holland and Poland.
The aim is to create a range of “budget design” hotels, offering a boutique experience at an affordable price. Other businesses, such as Base2Stay in London and Chic&Basic, which has properties in Madrid, Barcelona and Amsterdam, have successfully developed a similar model.
Inter Ikea has previously invested in shopping centres and property, including Strand East, close to the Olympic Park in Stratford, where up to 1,200 homes are planned, as well as a large area for commercial outlets. However, this is the company’s first involvement in the hotel industry.
The whereabouts of the first hotel in Germany will be revealed “within the next few weeks”, according to Harald Müller, a manager within the company’s property division.
The hotels are not expected to use the Ikea name, and will be run by an established hotel operator.
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