Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Tune Hotels acquires second UK site

06 December 2010 by
Tune Hotels acquires second UK site

A site near Broadgate in the City of London has been confirmed as the location for the capital's second Tune Hotel, as funding for the development of 15 properties in the capital has been confirmed.

The budget brand of Tune launched into the UK in August with the opening of the 79-bedroom Tune Hotel Westminster, near Waterloo Station.

Raag Hotels has exclusive rights to operate Tune Hotel's franchised properties in London and will be investing over £100m in the business. It has engaged Queensway Hotels to manage its assets and has acquired the Tune Hotel Westminster, which has been running close to 100% occupancy since day one.

Growth of Tune Hotels in London will be through the purchase of land or secondary commercial properties for development as the brand's budget hotels.

Tune Hotels was set up in south-east Asia 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. The average price paid at Tune Hotel Westminster is £50, while early bookers can be rewarded with a £35 rate.

Rob Mills, a partner at Mountgrange Investment Management said that Tune Hotels is an exciting concept because it meets a growing need in the market and provides great value for money to the customer.

"One of the most important elements of the new enterprise will be access to well-located development sites. We expect there to be a significant supply of secondary commercial buildings which can be made much more productive when converted to the Tune format."

Chief executive of Tune Hotels, Mark Lankester, said the new venture brings together people with complementary skills, networks and capital, enabling the company to speed up its development of 15 properties in London.

"They combine real estate deal-making capability and track record with substantial detailed operational hotel management expertise and financial know-how," he said.

Tune Group and Queensway to develop 15 London hotels >>

Tune Hotels promotes first London property with 1p per night offer >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking