Hotels in Indonesia: budget expansion

The budget hotel chain Tune Hotels has big plans for Indonesia. By 2013 the company plans to open eight hotels in the country. Red Planet Hotels Limited will be the partner of Tune Hotels in this business.

Tune Hotels Company has already presented its first hotel in Indonesia. It is a hotel in central Jakarta. Grand opening of the hotel took place on 12 July 2012. On the first day of the opening all 100 rooms were booked.

Red Planet Hotels plans to invest about 90 million dollars into the Indonesian hotel market. Today this country is one of the fastest growing hotel markets in the world. Here the world's leading hotel chains are actively promoting their services.
New hotels will be located not only at the beach resorts, but mostly in the Indonesian metropolises, where today there is a shortage of low-cost hotels with unified service. Tune Hotels has already established itself in Asia as one of the most inexpensive hotels. In addition the company's hotels are also presented in London. So the hotel chain is quite well known among the European tourists.

Red Planet Hotels will open Tune Hotels in Indonesia under the franchise agreement. Today, thanks to this partnership, Red Planet Hotels has already presented several hotels in Southeast Asia. It is expected that their number will increase to ten by the end of 2012. The next budget hotel in Indonesia should be opened in Pikanbaru on December 10, 2012.

As for the Tune Hotels, today the company operates 25 hotels in 5 countries: the Philippines, Malaysia, Thailand, Indonesia and the UK.

Tune Hotels’s super low-cost concept is based on accommodation with a minimum set of services. All guests have to pay extra money for each service. Among the additional services offered by the hotel in Jakarta, which the customer may choose and pay for, is 12-hour air conditioning in the room, Wi-Fi, towels, toiletries and so on.

Red Planet Hotels now owns 16% share of the fast-growing Tune Hotels network. Companies work together to strengthen the brand in the Asian market. Today Red Planet Hotels’ portfolio of hotel projects is estimated at 180 million dollars.