Hotel group Marriott has joined forces with Inter Hospitality - a subsidiary of Swedish furniture giant IKEA - to launch Moxy Hotels, a new budget hotel brand.

As part of the deal, Inter Hospitality will be the initial developer and owner of the first Moxy Hotels properties. Marriott has selected Nordic Hospitality to be its first franchisee to operate the brand.

The move marks Marriott's debut in the economy, three-star hospitality segment in Europe.

Arne Sorenson, president and CEO of Marriott International said the new brand would be the "essence of the next generation traveler", for whom "contemporary style is paramount".

He said: "Every aspect of the hotel was thoughtfully researched and crafted to reflect and deliver on the changing lifestyles and expectations of this fast-growing customer segment.

"We believe Marriott will lead the way in redefining the traditional economy hotel experience throughout Europe."

Marriott plans to add 150 franchised Moxy Hotels in Europe over the next 10 years, aiming for locations in Germany, Austria, United Kingdom, Ireland, Belgium, Italy, The Netherlands, Denmark, Finland, Norway, and Sweden.

The new brand will fuel Marriott's companywide growth in the region, which is expected to reach 80,000 rooms by 2015.

IKEA first announced its plans to launch a hotel chain in August 2012.