Ikea planning to launch low-cost hotel chain

Hotel News - 16/08/2012

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Furniture retail chain Ikea is looking to launch a line of budget hotels in Europe, reports said on Thursday.

The Swedish parent company of the retail chain, Inter Ikea, said that is amid plans to open some 100 properties, which will cater to Europe’s growing base of low-cost travellers amid the rise of budget airlines. Officials said the firm was looking to open the first property in Germany sometime in 2014.

Inter Ikea is already the owner of several hotel properties in the European region, although reports shave said that the firm will contract a third party group to operate the forthcoming low-cost hotel brand.

Inter Ikea property division’s business development manager Harald Muller said in a statement that the new brand would not carry the Ikea name or Ikea furniture products. However, he said that the chain will continue to utilise Ikea’s philosophy of combining high quality with reasonable prices.

The chain’s brand name has yet to be revealed, but the Inter Ikea is expected to issue a formal announcement sometime next month. The brand is reportedly currently amid property negotiations for new hotel sites in several countries including the UK, the Netherlands, Belgium, Poland and throughout Scandinavia.

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