Tune Hotels to bring low cost hotel rooms to Thailand

THAILAND TRAVEL NEWS: Finding a cheap but good hotel room in Phuket is about as easy as finding an airline check-in clerk who ignores your 35kg suitcase when your baggage allowance is only 20kg. All that is about to change though with Malaysian hotel chain Tune Hotels set to open it’s first Thailand property on the island province in 2012.

A subsidiary of low-cost Malaysian-based carrier AirAsia, Tune Hotels has joined with Thai real estate and investment management company Evolution Capital in a $US100 million (about Bt3.322 billion) to open 24 low-cost, or as the company prefers to describe them, “limited service”, hotels in Thailand by 2013.

Limited service refers to the amenities provided by the hotel. Tune Hotels provide its guests with a room – albeit it a small one at just 12-square meters, a bed and a pillow. Commonly supplied items such as towels, air-conditioning, toiletries, television and internet access are available, but charged on a usage basis. In return though it is possible for people to obtain rooms during promotion periods for as little $US3 (about Bt100).

While in-room amenities might be sparse, Tune Hotels properties do contain features such as five-star quality beds, hot and cold showers, 24-hour security, a swimming pool, conference rooms, and a restaurant with room service.

Mark Lankester, Tune Hotels CEO, said Tune Hotels was entering the Thai market because of the country’s bright tourism future. “Despite its recent troubles, Thailand remains a great prospect for both leisure and business travelers.

He said Tune Hotels has a plan to open more than 100 hotels, each with between 80 and 120 rooms, across Asia by 2014.

Mr Lankester said Tune Hotels uses a dynamic pricing system similar to its parent, AirAsia, with room prices constantly changing in response to occupancy levels.

Simon Gerovich, managing director and president of Evolution Capital said the proliferation of low-cost carriers such as AirAsia was allowing more budget travelers to fly, and they want similarly economical hotel rates at their destination.

The first Tune Hotel opened in Kuala Lumpur in May 2007, and there are now five in Malaysia and two on the Indonesian island of Bali. Together, they have served more than 500,000 guests. The deal with Evolution Capital will see the partnership open 44 Tune Hotels in Thailand, China, Bangladesh, the Philippines and Indonesia.

By John Le Fevre

Thailand Travel News for December 21, 2009