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Date Published: 20/05/2025

IKEA opens boutique hotel in the Canary Islands

Las Palmas de Gran Canaria is home to the brand’s first hospitality venture in Spain

In an unexpected move, Swedish retail giant IKEA has stepped into Spain’s tourism market, but not in the way you might think. The company has opened a boutique hotel in Las Palmas de Gran Canaria, and unlike its famous blue and yellow branding, this new venture is keeping things deliberately low profile.

Located on Calle Maestro Valle, just a short walk from Las Alcaravaneras Beach, the hotel is named Las Dunas de Santa Catalina Boutique House. It sits inside a beautifully restored mansion and offers over 20 rooms, plus a spacious terrace, outdoor pool and tranquil garden area. The design is tasteful and inviting, but noticeably not in the typical IKEA style. There is no flat-pack furniture, no showroom feel, and no IKEA name on the door.

The hotel was developed by Sarton Canarias, the holding company that manages IKEA’s interests in the Canary Islands. While the group’s well-known hotel in Älmhult, Sweden, which opened in 1964, is a direct expression of the IKEA brand, this Spanish project has taken a more subtle route. The management of the hotel has reportedly been outsourced, and its day-to-day operations are separate from the furniture retailer’s main business.

Despite the lack of branding, this signals a new direction for IKEA in Spain. The company is exploring more discreet entries into the tourism and accommodation sector. The concept leans toward boutique hospitality in residential urban areas, away from the busy tourist hotspots.

This is not the only hotel project in the works. Sarton Canarias is already preparing a second property in Las Palmas, Las Vegas de Ciudad Jardín Suites, which will bring a further 21 rooms to the city. It will be developed across two neighbouring villas on Brasil and Fortuny Streets.

While the move might surprise those who associate IKEA strictly with home furnishings, it looks to be part of a broader strategy to diversify and grow its presence in Spain, one boutique stay at a time.

Image: Adam Kolmacka/Unsplash

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