Tune Hotels, a Malaysian chain of "limited service" facilities, will open its first Thai property in 2012, to serve economy tourists.
Thailand's Evolution Capital, a listed real-estate investment advisory and management firm focused on hospitality and residential properties, yesterday signed a partnership agreement with Tune Hotels in a bid to expand into the budget-hotel market.
Tune Hotels is a subsidiary of Malaysia's low-cost carrier, AirAsia.
Under the terms of the agreement, Evolution Capital will operate 44 Tune Hotels in Thailand, China, Bangladesh, the Philippines and Indonesia.
The first local Tune Hotel will open in Phuket in 2012, with 20 located nationwide by 2013.
Tune Hotels CEO Mark Lankester said his company was attracted to Thailand because of its bright tourism outlook.
"Despite its recent troubles, Thailand remains a great prospect for both leisure and business travellers. With its combination of lower living costs together with an increase in the number of flight deals, it's no surprise it is consistently ranked Best Value for Money," he said.
Firmly in the budget category, Tune Hotels provide only a room, a bed and a pillow.
The hotels feature "dynamic pricing", similar to AirAsia. Using a demand-based booking system, guests can obtain rooms starting at US$3 (Bt100) - or even lower during promotions.
The hotels' limited services include a swimming pool, conference room, restaurant with room service and sauna. Guests pay for additional features like towels, air-conditioning, toiletries, television and Internet access.
Evolution Capital managing director and president Simon Gerovich said the proliferation of low-cost carriers like AirAsia had enabled more budget travellers to fly, and they wanted similarly economical hotel rates at their destination.
The first Tune Hotel opened in Kuala Lumpur in May 2007, and there are now five in Malaysia and two on the Indonesian island of Bali. Together, they have served 500,000 guests.
