Marriott International is moving into the economy hotel market, teaming up with IKEA’s real estate arm to launch a new European chain for travelers seeking style on a budget.
Cool and contemporary budget hotels such as Motel One, B&B Hotels and CitizenM are springing up all over Europe to meet demand from people who are keen to get away from it all despite squeezed leisure budgets.
Marriott said that in Europe, the economy tier represented nearly half of total room supply, but that there was still space in the market, which also includes the likes of Ibis, Holiday Inn and Premier Inn.
“You’re talking about 2.5 million rooms in this segment and we don’t have anything yet,” said Marriott Chief Executive Arne Sorenson at the IHIF hotels fair in Berlin, where the group installed one of the chain’s rooms with cream and brown furnishings and flat screen TVs.
The first Moxy hotel is expected to open in Milan in early 2014 and rooms will be priced at 60-85 euros.
Marriott said it was aiming for 150 of the hotels in Europe over the next 10 years in countries from Britain to Germany the Netherlands and Sweden.