Ikea’s new partnership with Marriott International is the latest example of a retailer venturing into the hotel business to strengthen its brand.

Infinity pool at Club Boucan

Why are we talking about this now?

Ikea’s property arm is to open a chain of budget hotels and has teamed up with Marriott International to support the venture.

The partnership will develop 50 hotels under the name Moxy in major cities across western Europe in the next five years, and the first will debut in Milan next year. Inter Hospitality, a subsidiary of Ikea parent Inter Ikea, will be the initial developer.

Which other retailers have opened hotels?

Perhaps the most notable example of a retailer to have taken this route is Hotel Chocolat. Its hotel on the Caribbean island of St Lucia (pictured) allows guests to stay on the plantation where it grows cocoa.

Fashion and homewares retailer Laura Ashley sold its four-star Llangoed Hall Hotel in Wales in 2010, but last year it acquired a £5.8m, 49-room hotel in Hertfordshire. Luxury department store Harrods’ owner Qatar Holding said last year it will open Harrods-branded hotels in New York and Paris after its first opens in Kuala Lumpur in 2018. Selfridges also owns a hotel next to its London store.

What is the reason retailers are doing this?

Ikea’s hotel venture is separate from its retail operation. However, the strength of the Swedish furniture giant’s brand will doubtless help Marriott secure sites in the budget market.

Laura Ashley’s hotel allows it to showcase its products and designs, enticing visitors to buy from it after a stay.

Michael Hobbs, former Adams chief executive and now chairman of retail search consultant Court & Spark, believes hotels can prove worthwhile. “In Laura Ashley’s case, boutique hotels complement its brand values,” he says.

Are more retailers likely to open hotels?

Hobbs believes that retailers such as Topshop, which have cachet around the globe, could easily open hotels in busy cities including New York, Tokyo and Los Angeles.

However, he cautions that the market is not easy to expand into. “The hotel market is overpopulated by smaller propositions and value-orientated, reasonable quality hotels. Brands have to think carefully before just jumping into a new area without an understanding of consumer habits or experience.

It would be a bold step for many retailers,” he says.

“However, if there’s an authenticity to your offer and point of difference then you can enhance your brand identity.”