Ikea is heading deeper into the hospitality industry, partnering with Marriott International Inc. to open 150 budget hotels in Europe over the next decade.
Ikea's Inter Hospitality Holding, part of the Swedish furniture giant’s property division, and Marriott plan to launch the first Moxy Hotel in Milan early next year.
The hope is to have 50 sites in development within five years, owned initially by Inter and operated by franchisees. With 150 to 300 rooms each, the hotels are expected to open in major cities in Germany, Britain, Italy, Denmark and more and will fall into the economy-tier, three-star hospitality segment, the companies said.
Their target guest? The “rapidly emerging Millennial traveler,” which Marriott hopes to woo with “contemporary stylish design,” eco-friendly elements and free Wi-Fi.
“Every aspect of the hotel was thoughtfully researched and crafted to reflect and deliver on the changing lifestyles and expectations of this fast-growing customer segment,” Arne Sorenson, Marriott’s chief executive, said in a statement.