Red Planet builds low-cost hotel universe

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Straightforward concept: Basic rooms for a basic price

Bangkok-based Red Planet Limited, a hotel investment company focused on Asia’s emerging markets, has plans to expand heavily in the region after it aquired a stake in Malaysia’s budget hotel chain Tune Hotels, a subsidiary of the AirAsia group.

With a 16.05 per cent stake in Tune Hotels, Red Planet is now the third largest shareholder of the rapidly expanding budget hotel chain, behind AirAsia founder Tony Fernandes and Dato’ Seri Kalimullah Hassan, CEO and Chairman of Malaysian investment holding ECM Libra Group.

The value of the deal remained undisclosed, Red Planet only spoke of a “significant multi-million dollar transaction.”

According to Red Planet CEO Tim Hansing, the company will expand with Tune hotels across the region and beyond.

Tune Hotels currently operates 24 hotels with 3,859 rooms in Malaysia, Indonesia, Thailand, the Philippines and the UK. Another 38 hotels with 10,106 rooms are planned, including first hotels in India, Scotland, Australia, Saudi Arabia, China and Bangladesh plus additional properties in Thailand, Indonesia, the Philippines, Malaysia and the UK.

Red Planet said that by the end of 2012 it will have 10 more hotels in Thailand, the Philippines and Indonesia.

Red Planet Limited CEO Tim Hansing: “Value for our shareholders”

In July, it opened the first Tune Hotel in Jakarta, Indonesia, and a fourth in the Philippines. Later this year, it will open Tune Hotels in Bangkok, Sumatra and Phuket.

Altogether, Red Planet has $180 million worth of hotel projects boasting 3,191 rooms that either operate or are under construction in Asia. Its latest round of fund raising was heavily oversubscribed.

The budget concept of Tune Hotels is to offer a cheap basic rate for the hotel room and to charge for all extra amenities such as towels, soap, shampoo, Wi-Fi and air conditioning. For example, the new Tune Hotel in Bangkok will start at $15 for the night, and, according to Hansing, Tune Hotel customers tend to add $5 worth of amenities, with air conditioning and Wi-Fi being the most popular. The hotels accept online, call center and walk-in booking.

Red Planet is incorporated in the Cayman Islands, with its regional head office based in Bangkok. It has 66 individual shareholders, of which 25 per cent hail from Japan.

 

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Reading Time: 2 minutes

Straightforward concept: Basic rooms for a basic price

Bangkok-based Red Planet Limited, a hotel investment company focused on Asia’s emerging markets, has plans to expand heavily in the region after it aquired a stake in Malaysia’s budget hotel chain Tune Hotels, a subsidiary of the AirAsia group.

Reading Time: 2 minutes

Straightforward concept: Basic rooms for a basic price

Bangkok-based Red Planet Limited, a hotel investment company focused on Asia’s emerging markets, has plans to expand heavily in the region after it aquired a stake in Malaysia’s budget hotel chain Tune Hotels, a subsidiary of the AirAsia group.

With a 16.05 per cent stake in Tune Hotels, Red Planet is now the third largest shareholder of the rapidly expanding budget hotel chain, behind AirAsia founder Tony Fernandes and Dato’ Seri Kalimullah Hassan, CEO and Chairman of Malaysian investment holding ECM Libra Group.

The value of the deal remained undisclosed, Red Planet only spoke of a “significant multi-million dollar transaction.”

According to Red Planet CEO Tim Hansing, the company will expand with Tune hotels across the region and beyond.

Tune Hotels currently operates 24 hotels with 3,859 rooms in Malaysia, Indonesia, Thailand, the Philippines and the UK. Another 38 hotels with 10,106 rooms are planned, including first hotels in India, Scotland, Australia, Saudi Arabia, China and Bangladesh plus additional properties in Thailand, Indonesia, the Philippines, Malaysia and the UK.

Red Planet said that by the end of 2012 it will have 10 more hotels in Thailand, the Philippines and Indonesia.

Red Planet Limited CEO Tim Hansing: “Value for our shareholders”

In July, it opened the first Tune Hotel in Jakarta, Indonesia, and a fourth in the Philippines. Later this year, it will open Tune Hotels in Bangkok, Sumatra and Phuket.

Altogether, Red Planet has $180 million worth of hotel projects boasting 3,191 rooms that either operate or are under construction in Asia. Its latest round of fund raising was heavily oversubscribed.

The budget concept of Tune Hotels is to offer a cheap basic rate for the hotel room and to charge for all extra amenities such as towels, soap, shampoo, Wi-Fi and air conditioning. For example, the new Tune Hotel in Bangkok will start at $15 for the night, and, according to Hansing, Tune Hotel customers tend to add $5 worth of amenities, with air conditioning and Wi-Fi being the most popular. The hotels accept online, call center and walk-in booking.

Red Planet is incorporated in the Cayman Islands, with its regional head office based in Bangkok. It has 66 individual shareholders, of which 25 per cent hail from Japan.

 

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