Red Planet and Tune Hotel team up to tap budget markets

MALAYSIA'S Tune Hotel Group has partnered Red Planet Hotels in a franchise to grow its presence in budget travel markets. Red Planet Hotels cited the unique hotel concept of Tune Hotels as a key factor in its decision for the partnership. The no-frills Tune Hotel Group, which is owned by AirAsia, adopts a limited-service model used by low-cost airlines.

“The concept has been successful. Brokering on this success, we are expanding the market to include China, Thailand, India, Philippines and Bangladesh,” said Red Planet Hotels chief executive officer Tim Hansing. He added: “The concept is for Red Planet Hotels to operate Tune Hotels under the franchise model. Recently, 1,023 rooms were signed, covering six hotels in three countries – including cities like Jakarta, Bangkok, Pattaya, Angeles City and two in Manila, while more deals are in the works.”

Red Planet Hotels would operate Tune Hotels under the franchise model. The expanded Tune Hotel model would be similar to the original concept, where guests are charged for the services they use. Plans are in store to tackle the lucrative China market, but Hansing declined to disclose the location of Red Planet Hotels' debut in China.
-TTG Asia.