BUDGET ROOMS Tune Hotels.com JV With Singapore Fund
The expansion plan of the budget hotel brand linked to AirAsia, Tune Hotels.com has continued to ramp up its expansion plans with a new partnership. A 50/50 joint venture has been announced with Singapore listed firm Plato Capital Ltd, to develop properties in Southeast Asia, Australia and the UK. Plato's core business is in the real estate and technology sectors.
Earlier this year Tune entered into another partnership with Thailand's Evolution Capital PCL for an exclusive master agreement for 5 countries namely Thailand, Philippines, Indonesia, China and Bangladesh.
Both ventures are targeting a critical mass of operating hotels by 2013. The jury remains out on Tune, with the inherent challenges of making a commercial model work in prime locations where land costs are significant and also for consumers for its pay and play model of options.