NEW DELHI: Tune Hotels plans to take on Indian branded budget hotel chains including Tata’s Ginger and Lemon Tree Hotels Pvt Ltd’s Red Fox by opening 30 properties in the next three years with an investment of US$30 million (RM93.3 million), up from one now.
“India only has three to five branded economy hotel chains compared with China, which has between 1,000 and 3,000 such hotel chains in operation,” business newspaper Mint quoted Tune Hotels Group chief Mark Lankester as saying in a phone interview.
Currently, Tune Hotels has one property in India, which was opened in May this year.
India, he said, has the biggest potential for budget hotels.
“We would be looking at US$30 million investment for our first 30 hotels in the first phase. If India grows the way we want it to and if the consumers embrace our business model, it could be the largest single market for us,” he said.
Tune Hotels Sdn Bhd, part of Tune Group Sdn Bhd, entered India in 2009 as Tune Hotels India Services in a joint venture with Mumbai-based Apodis Hotels and Resorts Ltd.
The company, which has 30 properties around the world, aims to open two hotels every month globally through acquisitions, leases and management contracts to reach its target of 100 hotels by 2016.
Lankester said Tune Hotels would pursue a single-brand strategy.
“Our strategy lies in delivering economy hotels in as many countries as possible. We will be leveraging on our group’s strength.
“We are already in discussion with Air Asia, which will be our preferred choice, to deliver package deals,” he said.
The hotel company will also focus on cities such as Chennai, which is AirAsia’s hub, apart from Agra, Jaipur, Delhi, Kochi, Kolkata and Bangalore. —Bernama
This article first appeared in The Edge Financial Daily, on August 2, 2013.
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