Tune Hotels, owned by AirAsia founder Tony Fernandes, is seeking to recreate the budget airline model, on the ground. The company is gearing up to open the doors to its first Australian hotel in Melbourne in November following its success overseas. Properties in Sydney and Perth are also being considered.

There are no towels, air conditioning or housekeeping at these hotel rooms. That is, unless you're willing to pay extra. Instead, guests are given a small room with the bare necessities – security, a "five star" bed and shower.

Tune Hotels CEO Mark Lankester is confident the Australian hotels will be successful and said many Australian travellers were already fans of the stripped-back hotel offerings they've experienced while overseas.

"Australia is important to us and we're excited about our Melbourne hotel opening later this year," Mr Lankester said.

"We've seen that Australians are already enjoying our hotel offerings overseas." Nearly five million travellers have stayed in Tune Hotel rooms across six countries, including Malaysia, the UK and India since the company launched nearly five years ago.

Travellers have been able to book rooms for as little as $3 thanks to its pay-as-you-use concept. While there's no pricing confirmation for the Australian hotels, Mr Lankester said they would be significantly cheaper than most hotel rooms in main cities.

"We will be offering rooms under $100 and we'll allow a hotel to be booked a year in advance, so if you book early you come out of it really well."

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