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Red Planet Hotels eyes niche in budget hotels in Asia

29 Nov 2010

Hotel investment company, Red Planet Hotels is clear about its mission – to build and set up limited-service properties in key Asian cities. As franchise partner of Tune Hotels, it is rapidly developing an accommodation portfolio in China, Indonesia, the Philippines, Thailand and Bangladesh.
 
Tim Hansing, the organisation’s chief executive, told Business Traveller that with more people travelling, due to the efforts of low-cost carriers such as AirAsia, demand for budget hotels was certain to grow. “Increasingly, these new consumers also don’t want to pay for what they won’t use. Their priorities are a comfortable bed, shower facilities and a safe environment as well as a central location and close to business or leisure attractions.”
 
Tune Hotels, following the business model that maverick Tony Fernandez laid out for his airline, subscribes to keeping room rates low by meeting fundamental requirements expected of a reputable lodging provider. It is “add ons” such as use of TV, towels, air-conditioning and hairdryers among others that are charged. The electronic key card system stores pre-paid credit to access these amenities.

A typical room measures from 11sqm to 12sqm and internal finishes are minimal. No lounges, pools or meeting rooms are provided and the retail outlets on site are operated by independent concessionaires.

All bookings are done on line at www.tunehotels.com, fetching prices from as low as US$3.

Hansing said he expected the chain’s growth to be robust as they planned to establish Tune Hotels in multiple sites in one city, which many of the larger chains would not be capable of doing. Red Planet Hotels’ current pipeline consists of seven hotels – a new project in Cebu has just been announced – representing 1,175 rooms in Jakarta in Indonesia, Bangkok and Pattaya in Thailand and in the Philippines, Angeles City, Cebu and two in Manila’s Ermita district and Makati City.

Ermita, Makati and Angeles City will open successively in October, November and December of 2011 with the rest to follow in 2012.

In the region, there are seven Tune Hotels in Malaysia, two in Indonesia and two in London (see news). The group has also to entered a partnership to open 20 more in India and a further 14 in the UK.

For more details, visit www.redplanethotels.com

Margie T Logarta

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