Whatever the benchmark pricing, Malaysia’s Tune Hotels will price itself between 15-20% lower that its competition set here in India.
The Malaysian budget hotel chain, whose parent company is revolutionary budget airline Air Asia, is developing 20 hotels in India with specialty fund Apodis Hospitality Group. The deadline for these 20 is 2012.
Tune’s pricing in India is very different from that of its home base, Malaysia. “Tune’s India pricing will be set by the real estate the product sits on. We are looking at a range between US $30-60. We will always try to be 15-20% lower that what the competition is doing,” said Umesh Luthria, business head, Apodis Hospitality.
Conversely, its top-of-the-line room in Kuala Lumpur retails for MYR63 (Rs855).
The hotelierindia.com first reported this development on September 11, 2009. Under the terms of the strategic partnership, five hotels will be operational by December 2010, with a staggered roll-out of the subsequent 15 hotels to be completed by end-2012. While sites are yet to be finalised, initial hotels will likely be located in and around Amritsar, Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Goa, Hyderabad, Indore, Jodhpur, Kochi, Mumbai, Pune, Pipavav, Raipur, Thiruvananthapuram and Tiruchirapally. Click here for full article
Tune India’s gross floor area is approximately 300 sq. ft per room, with an average build box cost of 12.5-13 lakh, excluding land. Hard cost per key is 9-9.5 lakh.
Tune, which prides itself on its tag line ‘5-star sleeping experience at a 1-star price’ is reported to be building its first five-star in the Malaysian town of Kota Baharu.
