Tune Hotels appoint master franchiser

Tune Hotels.com, has appointed Evolution Capital Public Company Limited as a master franchiser, in a deal that requires it to roll out 44 Tune Hotels in Thailand, China, Bangladesh, the Philippines, and Indonesia.

Evolution Capital, listed on the Stock Exchange of Thailand, is a real estate investment advisory and management firm with ownership interests in resorts currently under development in Thailand.

Under the terms of the franchise contract, the first 24 Tune Hotels will be under development in 2010 and should open in 2012. The first Tune Hotel in Thailand will be in Phuket, scheduled to open in 2012 to serve the budget travel tourist market.

Tune Hotel.com was the brainchild of AirAsia and was launched in Kuala Lumpur, Malaysia, in 2007. It adapts the same bare-bones service model used by low cost airlines.

Air Asia and Tune Hotels are  affiliated with some common shareholders, although the hotel group states it is an independent entity.

With the exception of Bali where there are two Tune Hotels, AirAsia’s hotel venture enjoys a limited presence in Malaysia. It has two properties in Kuala Lumpur, one in Kota Kinabalu, one in Kuching and two in Penang. Room rates in Malaysia start at M$15 and M$35 in Bali.

Room reservations and payment must be made online. The hotels have limited staff on-site with contractors paid to clean rooms just once a day and CCTVs reduce security costs.

Guests can book rooms at rates starting from US$3.00, but the rate increases as they tick check-list of optional items such as air-conditioning, laundered towels,  TV, mini refrigerator and telephone.