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AirAsia boss behind major London hotels boost
Monday, 04 Mar, 2010
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London is to get a £150 million hotels boost with the development of 15 new low cost properties by 2017.
Around 1,500 rooms will be made available by Malaysian firm Tune Hotels.com, part of the Tune Group, the private investment group of budget carrier AirAsia founder Tony Fernandes.
A strategic partnership has been forged with London-based private investment body Queensway Group to invest in, develop and operate the 15 hotels.
The company focuses on high quality basics of great beds with en-suite power showers and a pay-as-you-use system of optional add-ons for energy-consuming amenities.
It encourages guests to book early online to enjoy exceptionally low prices, with rooms available from £2 per night in its Malaysian and Indonesian hotels.
It runs a self-service online booking system similar to low-cost airlines that encourages guests to book as far in advance as possible on www.tunehotels.com to gain low prices.
The company, launched in Malaysia in 2007 currently has nine hotels in Kuala Lumpur, Kota Kinabalu, Kuching, KLIA-LCCT Airport, Penang, Danga Bay, Johor and Kota Damansara in Malaysia and Kuta – Bali and Double Six, Legian – Bali in Indonesia.
Tune Hotels.com’s limited service concept of a ‘five-star sleeping experience at a one-star price’ will start with a Westminster property at 118 Westminster Bridge Road, in the third quarter of this year.
The hotel company claims to draw on the low cost airline limited service model concept by eliminating costly facilities like conference rooms, food and beverage facilities, swimming pools and gyms and passing on savings to guests.
CEO Mark Lankester said: “We believe Tune Hotels.com will significantly boost London’s hospitality sector.
“While this city’s global reputation as a leisure and business destination will be enhanced by the Olympic Games in 2012, sterling’s current weakness works in London’s favour in attracting overseas visitors and spend, and in times of continuing economic uncertainty, superior value for money remains key.
“We are pleased to be working with organisations such as VisitBritain, VisitLondon, Think London and VisitEngland; and believe our dynamic pricing model will provide a strong call to action that will be hard to ignore.
“Our limited service concept encourages guests to spend less within the hotel itself, driving more spend outside the hotel, within the local business community.
“More consumers are demanding a ‘five-star sleeping experience at a one-star price’ so that they can spend their hard-earned income on shopping, dining and recreational pursuits outside the hotel.
“Tune Hotels.com creates a multiplier effect, growing overall tourism spend throughout the locations we establish.”
Queensway Group managing directorNick Jivraj said he viewed Tune Hotels.com’s brand presence in Asia Pacific as positive for the medium to long term “as we expect Asia Pacific to become a major incoming market into London”.
“In addition, we appreciate the strong match of cultures and values fostered in both teams – highly entrepreneurial, people-focused companies for which the customer is king,” he added.
Lankester expects to have investments in more than 100 hotels worldwide by 2015 including strategic partnerships in India and Thailand for properties across the Asian region incluidng China, Bangladesh, the Philippines and Indonesia.
by Phil Davies
Phil Davies
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