Tune Hotels eyeing opportunities in Singapore

Tune Hotels welcomed its two-millionth guest on July 13 at its hotel in Danga Bay, Johor Bahru in Malaysia.

Since its opening last year, Tune Hotel Danga Bay has been heavily promoted as a gateway to Singapore.

Tune Hotels, started four years ago, is part of the Tune Group founded by Tony Fernandes and Kamarudin Meranun.

The group is made up of low-cost carrier Air Asia, mobile operator Tune Talk, Tune Money which is a direct to consumer financial services company, Tune Sport and Tune Tones.

It introduced its tagline “Stay in RM, Play in S$” when it first opened in Danga Bay and hourly shuttle transfers are provided to Resorts World Sentosa and Universal Studios, as well as Marina Bay Sands in Singapore.

Mark Lankester, Tune Hotels group CEO, said: “Danga Bay is literally a stone’s throw from getting into Singapore.

“So our entire strategy at that point of time was to be able to complement what was happening in Singapore.

“It goes on to link together that Singapore is currently an entertainment-leisure destination. I think it’s probably one of the strongest certainly in Asia today and arguably one of the strongest in the world.”

Lankester added that some 75 per cent of Tune Hotel Danga Bay customers are made up of customers who intend to visit Resorts World Sentosa and Universal Studios, and Marina Bay Sands in Singapore.

However, demographics for Tune Hotel Danga are likely to change.

With developments going into the Iskandar Development Region (IDR), Lankester foresees more business travelers visiting the hotel.

Revenue growth is up 25 per cent year-on-year. Tune Hotels expects future revenue growth to be as high as 50 per cent by the end of next year.

This is in line with its plans to open new hotels in Kulim, Kedah in Malaysia this September, followed by Ermita in Manila, Phillippines and Hatyai in Thailand – both slated for December.

In 2012, some 30 new hotels are expected to open in India, Thailand, Phillippines, Malaysia, Indonesia and UK.

On whether Tune Hotels will be opening up in Singapore, Lankester said, “We’ve been looking at Singapore for the past three to four years.

“We’ll continue looking but there are always opportunities which we evaluate. If we do, we would probably open in 2013.”

Tune Hotels currently has 12 hotels located in various cities in Malaysia, Bali, Indonesia and London Westminster in the UK.

Source : Channel NewsAsia – 13 Jul 2011

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