Red Planet Hotels has invested in a 16.05% stake
in the rapidly expanding Tune Hotels operation as both companies
seek to grow the booming low cost hotel brand.
The deal cements
Red Planet Hotels – who is a major franchisee of the brand across
South-East Asia – as the third largest investor in Tune Hotels
with 9,975,038 shares, providing further value to Red Planet
This major investment also results in Red
Planet Hotels being invited to take up a seat on the board of directors,
enabling Red Planet Hotels to be actively involved in the future
of one of the world’s fastest growing hospitality concerns.
While the value of the deal remains undisclosed, it is a
“significant multi-million dollar transaction” and the largest
single corporate investment Red Planet Hotels has clinched in its
The investment in Tune Hotels comes at a
time when Red Planet Hotels’ latest round of fund raising was over
subscribed and the company now has US$180 million of hotel
projects (containing 3,191 rooms) either operating or under
construction in Asia.
Red Planet Hotels Chief Executive
Officer, Tim Hansing, said the investment represented Red Planet
Hotel’s pledge to the brand and the founding members’ vision for
the Tune Hotels concept.
“This significant investment and
commitment to the Tune Hotels brand is indicative of Red Planet
Hotels’ well-balanced long-term development programme and provides
tremendous value growth to our existing shareholders,” Mr Hansing
said. “As we move towards becoming a major owner and
operator of Tune Hotels properties, this investment and
endorsement of Tune’s board and management allows Red Planet
Hotels to participate and contribute constructively and
meaningfully for the benefit of both companies.”
Tune Hotels has
quickly established itself as the leading player in the low cost
hotel space just as AirAsia did in the low cost airline industry.
Established in 2007, there are currently 24 Tune Hotels
operating 3,859 rooms globally.
There is a confirmed
additional pipeline of 38 more hotels with 10,106 rooms, including
the first hotels in India, Scotland, Australia and Saudi Arabia
along with additional properties in Thailand, Indonesia, the
Philippines, Malaysia and England.
By the end of 2012 Red
Planet Hotels will have 10 operating hotels with 1,623 rooms in
Thailand, the Philippines and Indonesia.
This month, it
opened the first Tune Hotel in Jakarta, Indonesia (168 rooms) and
a fourth in the Philippines in Makati (215 rooms).
this year, Red Planet Hotels will open Tune Hotels in Asoke,
Bangkok (130 rooms - September), Pekanbaru, Sumatra (143 rooms -
December) and Patong, Phuket (150 rooms - December).
The largest shareholder in Tune Hotels remains
Tan Sri Tony Fernandes.
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