The household name household goods store IKEA has announced plans to build and develop around 100 budget hotels across Europe as part of its current push into the property market.
According to the report the hotels will not be under the Ikea name, nor Inter Ikea. The company behind Ikea will not run the hotels, they will be managed by an established hotel operator according to the firm.
According to the report, Ikea plans to build the hotels in markets where it is already involved in the local property market, including Poland, the Netherlands and the UK, but also mentioned Germany as one of the new markets it plans on making its first moves in to. The firm is also considering building student accommodation developments across Europe as well as it attempts to maximise returns.
"We will announce within a few weeks the first location for our budget hotel in Germany and we are in talks with hotel operators to rapidly implement our concept," Harald Müller, a senior manager in Inter Ikea's property division, told the Frankfurter Allgemeine Zeitung in Germany.
Ikea seems to have a knack for making the right investments at the right time. The firm made the headlines in the UK last year, as it began to build not properties, but entire neighbourhoods in order to capitalise on the unprecedented rental boom. It is now investing in budget design hotels, which is one of the fastest growing sectors in the industry, offering boutique styling at lower price points. This is one of a series of announcements of new acquisitions, developments and plans in the global hotel sector, and you can bet it won't be the last either.
- Wednesday 15 August 2012