 "Tune Hotels to open 100 budget hotels by 2020 in India")
The group's hospitality chain, Tune Hotels has tied up with Mumbai-based Apodis Hotels and Resorts to form a joint venture (JV) -- Tune Hotels India Services -- for the initial phase of expansion in India, targeting places like Bhavnagar, Delhi, Neemrana, Jaipur, Amritsar, Chandigarh and Chennai.
"We are looking at opening 100 hotels in India by 2020 as we feel India is going to be a very important market for us," Tune Hotels Group CEO Mark Lankester told PTI in a telephonic interview from Kuala Lumpur.
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"As we progress, we will also move to tier II and tier III cities as the requirement is huge in most such places," he added.
Elaborating on the plans for the initial phase of expansion in India, he said Tune Hotels will hold 60 per cent stake in the JV, while the rest 40 per cent will be held by the Indian partner.
"In five countries that we currently operate, the model we follow is a mix of acquisitions, joint ventures and management contract. It will be same in India," Lankester said when asked about the model Tune Hotels would follow in India.
He, however, did not comment on the investments for Tune Hotels' plans for India.
The company currently is present in United Kingdom, Malaysia, Indonesia, Thailand and Philippines with a total of 28 operating hotels.
In most countries the 'limited service' hotel chain operates, apart from the room charge, one has to pay separately for 24-hour air conditioning, television, towels or toiletry items.
"But for the Indian market, a person will get all the amenities, but they can opt out of the facilities and the prices will go down," he added.
For the company's first property in Ahmedabad, the firm claims that its rooms would be available for as less as Rs 599 per night for those who book early preferably as soon as the online booking opens from April 29.
In India the company is targeting both foreign tourists, especially from the countries where it already has a presence, and the domestic travellers segment.
"We will attract domestic travellers, both leisure and business, in significant numbers as not only do we provide good value for money... Domestic demand in India is supported by a strong domestic economy," Lankester said.
The company is also planning to tap the marriage market in India and will provide a banquet facility in most of its hotels that will have between 100 to 200 rooms.
In February this yea, Fernandes-led AirAsia had sought approval to start a venture in India with the Tata Group along with another Indian investor. The proposal was approved by FIPB in March.
The new airline may start flying by the end of this year with 3-4 planes and an initial investment of about USD 50 million by the Malaysian budget carrier.
The proposed joint venture will operate from Chennai and will focus on providing domestic connectivity to Tier-II and Tier-III cities.