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Low-cost Tune hotels on track for expansion
Sunday, 24 Nov, 2010
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Low-cost Asian hotel chain Tune Hotels says it will have opened 15 properties in London by 2017.
The group opened its first hotel in Westminster in August with headline grabbing 1p-a-night deals for its shower-and-bed basic rooms. According to the company, the hotel has run at near 100% occupancy ever since.
Parent company Tune Group is fronted by Tony Fernandes, founder of long-haul airline AirAsia and a number of budget hotels in Indonesia and Malaysia.
The group initially opened hotels in Asia to provide accommodation for Air Asia customers but the popularity of the cheap rooms has prompted expansion.
Room rates start at around £2 for the Asian hotels but, based on the Westminster property, London’s rates are more likely to average around the £50 mark.
The internet-based business model is much the same as that of a low-cost airline, where the cheaper deals are snapped up first.
Tune has partnered with London-based investment group Queensway to create the string of London hotels.
The hotels charge guests fore extras such as air-con and have no frills such as pools, gyms and restaurants.
by Dinah Hatch
Dinah
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