Tune Hotels plans to open 100 budget hotels by 2020 in India

In most countries the 'limited service' hotel chain operates, apart from the room charge, one has to pay separately for 24-hour air conditioning, television, towels or toiletry items

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After taking steps to enter the Indian civil aviation sector in association with Tatas, AirAsia promoter Tony Fernandes' Tune Group is set to foray into the country's hospitality sector with plans to open 100 budget hotels across the country by 2020.


The group's hospitality chain, Tune Hotels has tied up with Mumbai-based Apodis Hotels and Resorts to form a joint venture (JV) -- Tune Hotels India Services -- for the initial phase of expansion in India, targeting places like Bhavnagar, Delhi, Neemrana, Jaipur, Amritsar, Chandigarh and Chennai. 

"We are looking at opening 100 hotels in India by 2020 as we feel India is going to be a very important market for us," Tune Hotels Group CEO Mark Lankester told PTI in a telephonic interview from Kuala Lumpur.

"As we progress, we will also move to tier II and tier III cities as the requirement is huge in most such places," he added.

Elaborating on the plans for the initial phase of expansion in India, he said Tune Hotels will hold 60 per cent stake in the JV, while the rest 40 per cent will be held by the Indian partner.

"In five countries that we currently operate, the model we follow is a mix of acquisitions, joint ventures and management contract. It will be same in India," Lankester said when asked about the model Tune Hotels would follow in India.

He, however, did not comment on the investments for Tune Hotels' plans for India.

The company currently is present in United Kingdom, Malaysia, Indonesia, Thailand and Philippines with a total of 28 operating hotels.

In most countries the 'limited service' hotel chain operates, apart from the room charge, one has to pay separately for 24-hour air conditioning, television, towels or toiletry items.

"But for the Indian market, a person will get all the amenities, but they can opt out of the facilities and the prices will go down," he added.

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