AirAsia founder Tony Fernandes to bring budget Hotel chain Tune in India

Tune claims to offer five-star beds at 1-star prices; In India, it would offer room tariff at USD 50 a night or even lower

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AirAsia founder and CEO Tony Fernandes plans to launch his no-frills hotel chain "Tune" into India

Tune has floated 60:40 joint venture with IL&FS-backed Apodis Hospitality to open 22 hotels in the first phase. The first property will come up in Ahmedabad soon, said Apodis founder Mahesh Gandhi.

Tune claims to offer "five-star beds at 1-star prices". In India, it would offer room tariff at $50 a night or even lower. "He (Tony) has created a successful low fare airline and has embraced the same limited service model in hospitality business too," Gandhi added. He started Apodis two years ago after quitting private equity firm Trikona Capital, with IL&FS as a financial investor as per a TOI report.

 

Each Tune hotel will have between 100 to 250 keys depending on the market potential. Tune plans to strike synergies with AirAsia's operations and promotional schemes while developing its footprint.

The 48-year-old Fernandes, who announced plans to launch AirAsia India in partnership with Tatas, floated Tune Hotels six years ago, with the first one opening in Kuala Lumpur. Tune's presence is largely in Malaysia but has been expanding overseas with properties in London and Bali.

The Malaysian Indian businessman's other interests include ownership of F-1 team Caterham and English Premier League football club QPR.

 

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