IKEA to build budget hotel chain in Europe

  • IKEA has plans to build a budget hotel chain across Europe.

    The 100 hotels will not feature IKEA's flat-pack furniture or its brand name. It represents the company's biggest real estate development to date.

    Demand for stylish yet affordable rooms is on the rise, according to Harald Muller, senior executive at the property unit of Inter IKEA, which owns the IKEA brand and concept.

    "'Budget designer hotels is today the fastest developing hotel segment." he said.

    The world's largest furniture retailer’s first hotel is likely to open in Germany in 2014. The chain will be run by an international hotel operator.