08/16/2012 06:03 EDT | Updated 10/16/2012 05:12 EDT

Ikea Hotel Chain To Open First European Location In 2014

In this photo taken on June 18, 2008, the IKEA logo is shown on the side of the warehouse-sized store during the grand opening of New York City's first IKEA in the Red Hook section of Brooklyn. The Swedish retailer has applied to invest a total of Euro 1.5 billion ($1.2 billion) to open 25 stores in India, India's Commerce Ministry Anand Sharma said Friday, June 22, 2012. (AP Photo/Mark Lennihan)
STOCKHOLM - Best known for its flat-pack furniture, Ikea is now planning to launch a budget hotel chain in Europe.

Inter Ikea, which owns the Ikea concept, says it plans hotels in 100 locations across Europe, with the first expected to open in 2014.

Harald Muller, business development manager of the company's property division, says that although the chain won't use Ikea's name or furniture, it will engrain the Ikea philosophy of "good quality at a reasonable price."

Inter Ikea, which already owns a handful of hotels in Europe, will work with another company to operate the chain. The name of the hotel chain was not revealed Thursday, but is expected to be released in an official announcement in September.

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