Ikea branches into discount hotel sector as means to seek proper returns on its huge cash

Wednesday, 15 August 2012
Inter Ikea, which owns the name and rights of the Ikea brand is reported to be seeking new ways to invest its gigantic cash into other sectors.

The company is reported to be in the construction business of 100 low-priced hotels in Europe, reports Swedish business daily, Dagens Industri referring to the British Financial Times.

Inter Ikea, the company that owns rights to the brand Ikea, will invest more in real estate to get a better return on its money , the paper reports.
Part of the strategy is to build up a chain of low budget hotels. The hotel will not bear the Ikea name and be run by an outside operator.

Inter Ikea is also considering the construction of student apartments and the report hold that the company first want to enter the markets where it already is active in the property sector, such as in Britain, the Netherlands and Poland, but new markets such as Germany are also being sought.
by Scancomark.se Team

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