Budget hotel brand Tune is continuing with its expansion plans in Indonesia.
Through its Indonesian franchise company, Red Planet, the company recently opened its seventh hotel in the country, located in Surabaya, and has multiple new projects in the pipeline.
“We are of the firm belief that the value-for-money, or budget, hotel sector in Indonesia has the scope for the most growth with rising domestic demand fuelling this expansion,” said Suwito, president director of PT Red Planet Indonesia Tbk.
“Our in-depth research strongly indicates this segment is also the most resilient sector of the hotel market in Indonesia and will remain profitable through the normal ebbs and flows of an emerging economy.
“Tune Hotels is without a doubt the most iconic value-for-money brand in the region and we look forward to building on the international success the brand has had,” he added.
The 156-room Tune Hotel Surabaya opened this week, taking the company’s total portfolio to seven hotels with 1,063 rooms. These include properties in Pasar Baru (166 rooms), Pekanbaru (140), Solo (153), Bekasi (157), Palembang (147) and Makassar (144).
But Red Planet said it is in “final negotiations” for a minimum of four more sites in the Jakarta region, with formal announcements expected in the coming weeks.
These projects form a broader expansion plan that will see the company announce “a minimum of 20 more hotels” in the next two years.
Tune Hotels, which was launched by AirAsia boss Tony Fernandes, now operates a global portfolio of 43 hotels in eight countries – Indonesia, Thailand, Philippines, Malaysia, Japan, India, Australia and the UK.
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