Swedish furniture retailer Ikea will roll out its own chain of budget hotels across Europe to meet demand for cheap but stylish accommodation.

The firm plans to eventually build 100 hotels but will not put its brand name to the development – or fit out the room with its trademark flat-pack furniture, Reuters reports.

"There is no Ikea furniture in it," said Harald Muller, a senior executive at the company’s property arm.

"It is not an Ikea hotel. It’s a continuation of our normal investment activities in real estate."

The first hotel is likely to open in Germany by 2014 and will be run by an international hotel operator.

Hotels in Belgium, Austria, the Netherlands and Britain will follow shortly after. Not only will Ikea’s furniture be absent from the picture, the Swedish meatballs and cheap meals offered at Ikea’s retail stores will be given a miss.

There will be no in-house restaurants and patrons will instead have to settle for a "good breakfast, fast internet, fast check-in and no check out", Mr Muller said.

Like the recent growth in cheap airline flights, Ikea believes the budget hotel sector is one of the travel industry’s fastest growing markets.

http://finance.ninemsn.com.au/newsbusiness/8517409/ikea-to-roll-out-budget-hotel-chain