Tune teams up with Plato Capital

KUALA LUMPU: Tune (Tune Hotels) is set to increase its presence beyond Malaysia with its latest tie-up with Singapore-based Plato Capital Ltd (Plato).

According to a statement on May 11, the 50:50 held, RM100 million strategic partnership with Plato will develop and operate Tune Hotels in Australia, the UK and key countries in South East Asia. The joint venture (JV) plans to have a portfolio of up to 10 operational assets by 2013.

Plato is a public-listed investment holding company on the Singapore Stock Exchange with a diversified portfolio across the real estate and information technology space. The JV represents Plato’s maiden foray into the leisure and hospitality sector.

“We have already identified attractive properties in the areas that we intend to focus on that may be acquired by the JV and are actively exploring other opportunities. More importantly, this partnership continues the underlying focus of Tune and that is to provide great value accommodation to smart travelers,” said Tune Hotels’ CEO Mark Lankester.

Meanwhile, head of investments at Plato, Gareth Lim said: “We are excited to be part of an established brand with significant management expertise and growth potential. Tune Hotels is a proven business model and has demonstrated the mass appeal of a quality-lodging products at attractive prices. The advent of low-cost carriers over the past decade has led to a corresponding leap in travel and tourism and this venture allows Plato to access this burgeoning market for affordable travel and lodging. Tune Hotels is also part of the Tune Group of companies and we look forward to exploring initiatives with other affiliates in the group that can further complement our investment.”

Tune Hotels launched its first property in 2007 in Kuala Lumpur, and has since expanded its portfolio to nine hotels across Malaysia and Indonesia.

The hotels are in Kuala Lumpur, Kota Kinabalu, Kuching, KLIA-LCCT Airport, Penang, Danga Bay in Johor, Kota Damansara in Selangor; Kuta and Double Six, Legian, both in Bali, Indonesia. A 10th hotel will be opened in Westminster, London in August 2010.
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