Tune Hotels unveils big expansion plans

Tune Hotels has unveiled plans to open up to 25 new properties by 2020, amounting to a further £200 million in the UK. The announcement comes as the select-service hotel group opens its sixth UK property in Newcastle this week.

Tune Hotels launched in Malaysia in 2007 with a business model based on the low-cost airline structure. Prices in the UK start from £25 a night for a double or twin room, and regular promotional offers can see rooms on sale from as little as £10.

“When we started the business, we polled 1,000 low cost airline passengers on what was important to them when staying in a $30 a night hotel,” said Tune Hotels Group chief Mark Lankester.  

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Their responses shaped our five core principles and also highlighted that people only wanted to pay for what they used, rather than for all those non-essential items that come as part and parcel of the typical hotel room price.

As Breaking Travel News reports, the UK was Tune Hotels’ first expansion outside Asia and in 2010 London was chosen for being not only one of the world’s leading tourism centres to trial the concept to see if it was viable outside of its home market, but also for the strong emotional and business ties that the founders and management had with the country.

“Our aim is to have a further 25 hotels across the UK in the next five years representing a significant investment of over £200 million,” said Lankester. “We will be targeting the major business cities across the UK such as London, Manchester, Birmingham and Leeds, as well as looking at key university cities where our concept has proved very popular.”

 

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The 216-room hotel will follow the citizenM Seattle South Lake Union, which is slated to open this April.

Though Marriott said the virus could lower fee revenue by $25 million a month, President/CEO Arne Sorensen called the estimate “probably a bit light.”