Phuket targetted in Tune's Thai invasion

PHUKET: Tune Hotels, Tony Fernandez’ earthbound equivalent of his highly successful AirAsia, will be landing in Thailand soon, beginning in Haad Yai in December, and followed by Phuket, Bangkok and Pattaya.

Saturday 23 July 2011, 02:31AM

Tune Hotels will be landing in Thailand soon, beginning in Haad Yai in December, and followed by Phuket, Bangkok and Pattaya.

The Thailand drive will be in association with Red Planet Hotels, an emerging Asian hotel investment company that has opted to have all of its hotels operated under a franchise agreement with Tune.

Announcing the latest development at the Hotel Investment Conference Asia Pacific in Hong Kong recently, Red Planet Hotels Chief Executive Officer Tim Hansing said: “Tune Hotels’ business model is solid and complements our investment methodology.

“Even though many investment companies have been looking to contain expenses and put expansion on the back burner, we were able to go out at the end of global financial crisis in 2009 and raise significant capital.

“To be able to raise funds and then to quickly secure sites and contracts to have over 1,000 keys under construction is a significant achievement and testament to the strength of our experienced management team and the Tune Hotels business model,” Mr Hansing said.

That model closely echoes the AirAsia no-frills offer: check into a Tune Hotel and you get a comfortable bed with shower (no bath) at a price that is usually significantly below rates at other hotels in the area.

There’s no pool, no business centre and no gym. And if you want air-con, towels, toiletries, breakfast or TV, you pay extra.

Also, as with the airline, the earlier guests book, the cheaper the rate is likely to be. And, like AirAsia, Tune runs frequent promotion periods with rooms offered in exchange for pocket change.

Mr Hansing added that the no-frills “synergy” presented Red Planet Hotels with fine opportunities for expansion across the region and sites are continually being scoped and investigated.

Tune currently has 10 hotels, seven in Malaysia, two in Bali and one in London. By 2013, the aim is 584 hotels worldwide.