Value focused hotel chain Tune Hotels will eliminate some service charges and expand its network from 12 to over 40 hotels by the end of 2012 in Malaysia, Indonesia and further overseas, including London and Australia.

CEO Mark Lankester said the company would invest heavily in the expansion, with Malaysian hotels costing from RM15-20 million (US$4.9-6.5 million) each to set up, and more expensive locations such as London likely to be in the range of RM70 million ($22.9 million).

Operating on similar principles to its sister company AirAsia, Tune Hotels offers ‘limited service’ rooms at budget prices, charing extras for hotel services it says are often superfluous, such as daily cleaning and laundry. TV, internet and air conditioning are also optional extras, though the company promises “5-star beds” as standard. As well as its popularity with tourists, Tune Hotels has recently seen an increase in business travelers looking to save on accommodation.

source & article: Business Times