Published on Wednesday, August 15, 2012
Furniture retailer Ikea is looking to open a budget 'design' hotel chain across Europe.
The hotels - believed to be at least 100 - will not use the Ikea name and will not be run by the Swedish company but by an established hotel operator, reports the Financial Times.
Budget design hotels - with boutique style at lower prices - is one of the fastest growing sectors in the industry.
Munich-based Motel One, which is a similar concept, is also looking to expand into Europe with a hotel planned for Edinburgh.
Inter Ikea hopes to build the hotels in established markets such as the UK, Netherlands and Poland as well as new markets like Germany.
"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.
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.