Tune Hotels plans major Indian expansion
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Tune Hotels is plotting a major expansion in the Indian market as well as plans to sign new deals in Australia. The company has signed an agreement to develop 30 hotels in India. Speaking to Travel Daily, Tune Hotels’ Chief Executive Officer Mark Lankester revealed that the first of these will open in Ahmedabad in the first quarter of 2013, with further Tunes planned for destinations including Delhi, Amritsar, Chandigarh, Kolkata, Chennai, Hyderabad, Bengaluru, Kochi and Trivandrum.
The brand will also roll out in Australia, with a 250-room hotel currently under construction at Sydney airport and a 235-room in Melbourne city centre. The company is also in discussions over a new property in Perth. The Sydney property marks Tune’s first airport location, but Lankester said that Tune’s overall company strategy was to open hotels in “good, central locations”.
Speaking about the Indian expansion, Lankester said he plans to the create brand awareness in the market in an effort to target the growing number of Indians now wanting low-cost accommodation.
“We play at the base of the pyramid, addressing the needs of the larger market,” Lankester said. “Don’t be fooled by the stories of Indian airlines going bust; there are some really strong low-cost airlines expanding in India. Corporate business is expected to be the key, and we will cater to domestic and regional business travellers. The friends and family market is also an important, as are uni students. Indians are very price sensitive.”
The CEO also revealed that Tune’s first Bangkok property, which will be located on the Thai capital’s Sukhumvit Soi 14, is likely to open earlier than expected on 14 September this year. The first Tune hotel in Phuket will follow by Q1 2013, and Lankester said the Thai market also presented a major opportunity for his company.
“As we understand the needs of Thai domestic travellers more, we become braver,” he said, adding that developing properties in Thailand’s regional hubs such as Chiang Mai, Khon Kaen, Nakhon Ratchasima and Udon Thani “makes an awful lot of sense”, and that Tune could also “do another six or seven hotels in Bangkok”.
“People say that Bangkok is over-roomed, but I think there is still space to fill in the city – the Bangkok market is coming back,” he said.
In the Middle East meanwhile, Tune has signed a joint venture agreement in Qatar, and is planning to roll-out the Tune brand in Doha, as well as locations in Saudi Arabia, Egypt and the UAE.
“Now is the time to be more aggressive,” Lankester said.
