The FINANCIAL -- Fast-expanding budget brand Tune
Hotels has opened its third property in London, and will launch a
fourth next month.
The 137-bedroom Tune hotel Paddington is the latest opening for the Malaysian-based group, which already has properties in Westminster and Liverpool Street. It is located 300m from Edgeware Road tube station and incorporates a coffee shop.
According to Caterer and Hotelkeeper, in July, the 217-bedroom Tune hotel Kings Cross will open in a former office building, Swinton House. All four hotels are offering bedrooms from £35 per night.
Chief executive of Tune Hotels, Mark Lankaster, said that the company is on target to open 1,500 bedrooms in London by 2016 and will open its first property outside the capital - a 179-bedroom hotel in Edinburgh - in December.
Tune Hotels was set up in 2007 by Tony Fernanades, the Malaysian entrepreneur behind low-cost airline AirAsia. Like low-cost airlines, the concept of Tune Hotels is based on an internet-driven marketing model, where pricing is linked to demand with early bookings offering guests low rates.
A group of investors set up Raag Hotels in 2010 to finance - at a cost of £100m - the expansion of Tune Hotel's franchised properties in London and has engaged Queensway Hotels to manage its assets.