Inter IKEA, the development unit of Sweden-based budget furniture retailer IKEA, is planning to set up student residences and around 100 budget design hotels across Europe, as part of its plan to invest in long-term businesses.
Budget design hotels, which provide boutique styling at relatively low prices, are one of the fastest growing sectors in the industry.
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Inter IKEA will not use the IKEA brand name for the hotels, and will allow another operator to run them.
The hotels will be established in new markets, such as Germany, as well as the UK, Netherlands and Poland, where the company is already active.
The company is in talks with a pan-European operator as well as regional hotel operators to quickly implement its concept.
The Financial Times reported that Harald Müller, senior manager at Inter IKEA’s property division LandProp, told the Frankfurter Allgemeine Zeitung that the company will soon announce the first location of its budget hotel in Germany.
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By GlobalDataThe company is scouting for locations exceeding 2,500m² across all major German cities and smaller ones such as Augsburg and Freiburg.
LandProp, under the brand name Ulito, also intends to develop student housing in western European university cities.
The property division is currently developing Strand East, a 10ha high-profile project with around 1,200 apartments, small retail stores, a Marriott hotel and up to 500,000ft² of commercial space in east London.
Netherlands-based Vastint Holding is the holding company of LandProp, which is active in eight European countries: the Netherlands, Poland, Belgium, Lithuania, Latvia, Romania, Spain and the UK.
Inter IKEA owns the intellectual property rights of IKEA and receives money from all IKEA franchises.
