IKEA Reveals Plans to Open Budget Hotel Chain

Posted on 12 March, 2013 by Kirsten Kennedy

And you don’t have to assemble them yourself!

Swedish flat-pack enthusiasts IKEA and American luxury chain Marriott are to unite in a bid to provide affordable overnight accommodation for travellers throughout Europe. The somewhat unlikely partnership has created budget hotel chain Moxy, and hopes to construct up to 150 commercial properties under the name during the next 10 years.

Visitors to Milan will be the first to stay in a Moxy hotel

Moxy has already revealed the location of its first budget hotel, which is due to begin accepting visitors early in 2014. Rooms in the Milanese Moxy hotel will cost between 60 and 80 Euros – a bargain for a modern space in one of Italy’s most popular cities.

The décor of the hotel was unveiled at the IHIF hotels fair in Berlin this week, with minimalist chic certainly appearing to be the order of the day. Flat screen television sets, USB ports found next to all electrical sockets and tastefully neutral cream and brown combinations will play a large part in the identikit rooms.

However, floor to ceiling wall art in the rooms will play a role in giving a unique feel to hotels varying city to city – in Amsterdam, for example, murals will depict bicycles beside the canal, while Berlin tourists will be treated to an image of the Brandenburg Gate.

Subsidiary of IKEA’s holding company Inter IKEA, Inter Hospitality, will initially develop and own the first run of Moxy hotels, which are expected to be situated in countries such as the Netherlands, Germany, Britain, Austria and of course Italy. The day to day operations will be the responsibility of franchisee Nordic Hospitality, according to Marriott.

Moxy believes that the high demand for budget hotel chains in Europe has not yet been properly met claiming that half the market on the continent is for more affordable lodgings. As, when completed, Moxy aims to offer between 25,000 and 30,000 rooms in a multitude of countries Marriott is confident that the venture will prove hugely popular with tourists attempting to stick to a tight budget.

However, while the hotel giant is assured of success in Europe, it seems unlikely that Moxy will be expanding further afield in the near future according to Marriott’s European chief executive Amy McPherson. Instead, she says the chain will focus on breaking into the existing market and competing with rivals.

She continues; “The great thing about Inter Hospitality is that they come with a significant balance sheet so there is no financing challenge.

“Given the product we have, I believe the space is still wide open – there’s room for a number of good competitors.”

IKEA will largely be a financial partner in the venture rather than providing the blueprints for the interior design, which will come as something of a relief for those opposed to bright blue and yellow furnishings!

Would you choose to stay in a Moxy hotel if travelling to a European city on a budget, or do you prefer to stick with established brands such as Travelodge or Holiday Inn? Will these hotels prove popular in the UK or do they need to differentiate themselves from the norm to really make a splash?




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