The no frills economy hotel chain Tune Hotels.com is expanding its base across Asia.

Already located in a number of Malaysian cities, and Bali in Indonesia, is expected to add 44 new properties ina joint venture with the publicly-listed Thai property development company Evolution Capital.

The venmture is planning to roll out hotels in Thailand, China, Bangladesh, the Philippines, and Indonesia.

Under the terms of partnership, the first twenty four Tune Hotels.com properties are expected to be under cosntruction by early 2010, and operational by 2012. The other 20 properties are expected to be operation by 2013.

“With the proliferation of low-cost air carriers such as AirAsia, passengers are now able to travel, in many cases for the first time, between Asia’s major cities at incredibly competitive prices, but they are challenged by having to pay ‘full service’ prices for hotel accommodation when they arrive," Simon Gerovich, Managing Director & President of Evolution Capital, said Friday. "Travellers these days are more savvy and inquisitive, they want to get out and about, and see as much as they can and because they are spending less of their time in their rooms, they are understandably opting to spend less of their budget within the hotel itself and more on and at the destination’s attractions," he said.

"The economy sector of the market in most parts of Asia, is largely dominated by domestic chains and individual hotels that have variable standards, lacking the consistency of service and facilities that all travelers demand. There remains a huge demand for clean, safe branded low-cost accommodation in Asia’s most popular destinations," Gerovich said. "The Tune Hotels.com limited service model has proven itself to cater very well to this demand and we are very excited to partner with TuneHotels.com in spreading this fresh concept throughout a growing number of destinations in Asia.”

Gerovich continued, “Evolution Capital has always sought out unique investment opportunities in the hospitality industry. The Tune Hotels.com model really stands out in many ways, but particularly in how it gives consumers far greater right over the management of their resources, not just financially but also environmentally. With the spread of environmental conscientiousness there is a corresponding interest in ecologically-responsible consumption. The Tune Hotels.com pay-as-you-use system for air-conditioning, laundered towels, and other energy-consuming amenities allows travelers to opt in or out of services which have an impact on the environment. These add-ons are available for a small fee, and should guests choose not to take these options, not only do they save money but they also contribute to preserving mother earth’s resources. This directly encourages a less wasteful, more conscientious lifestyle, which an increasing number of travelers and consumers are keen to adopt," said Gerovich.

"Unlike in North America and Europe, here in Asia there has been relative under-investment in the budget hospitality sector, which is a proven business model worldwide. By placing branded limited service hotels in strategic locations, we shall cater not only to international long-haul travelers but also to the short-haul Asian travel markets," said Gerovich. "This is part of the travel market which is underserved by hotel developers, even though this particular market sector is less susceptible to unforeseen adverse global events and economic volatility. This under-investment creates an opportunity for Evolution Capital to deliver a branded, demand-driven, quality product to the public while also generating attractive financial returns. By leveraging Tune Hotels.com’s proven brand, team expertise, and operational model, Evolution Capital expects that such investment will present significant growth in the near future.”

Mrs. Juthaporn Rerngronasa, Deputy Governor Marketing Communications, Tourism Authority of Thailand, applauded the move to bring the limited service hotel brand into Thailand. “The authority believes that Tune Hotels.com’s arrival into Thailand will do much to grow the pie of tourism dollars in total, non-Thai as well as Thai. With the limited service concept encouraging guests to spend less within the hotel itself, more spending power will be activated outside the hotel, within the local business ecosystem," Mrs. Rerngronasa said. "With more consumers opting to have a ‘5-star sleeping experience at a 1-star price’ so that they can spend their hard-earned income on shopping, dining and recreational pursuits outside the hotel, I can only imagine that this partnership will be lauded not only by consumers, but also by Thai companies catering to both the leisure and business tourism markets.”

Mrs. Rerngronasa continued, “We have studied the Tune Hotels.com model, and its optimised use of all resources, right from its space-efficient building design, to the omission of costly, underutilized full service facilities, all the way through to their innovative pay-per-use concept for energy consuming amenities like air-conditioning and laundered towels. The Tourism Authority of Thailand commends the in-built commitment to responsible tourism, welcomes the new pay-per-use concept and hopes the propagation of such conscientious consumerism will further develop Thailand’s responsible tourism strategy."

Similar to low-cost carrier airlines, Tune Hotels.com employs a self-service online booking system that encourages guests to book as far in advance as possible. Rates are kept low by employing a ‘limited service’ concept where underutilized hotel-operated facilities like swimming pools and gyms are omitted and cost savings are passed on to the guest. All hotels feature space-efficient, streamlined rooms focusing on high-quality basics: 5-star beds and powerful hot showers. Though minimally priced, the strategically located hotels still provide daily housekeeping services, electronic keycard access into rooms, 24-hour CCTV and manned security, and no access into the main lobby without a keycard past midnight.

Since the brand was first launched in Kuala Lumpur, Malaysia, in 2007, more than 500,000 guests have stayed at a Tune Hotels.com hotel, and it was recently named as one of ‘7 Compact Hotels Big on Style’ in a global list by Fast Company, a publication that focuses on innovative companies sparking change in the marketplace.

Despite the challenging global economic environment, the partnership with Evolution Capital forms only a part of Tune Hotels.com’s aggressive regional expansion plans. Explains Lankester, “In total, including our own 7 existing hotels located in Kuala Lumpur, Kota Kinabalu, Kuching, KLIA-LCCT Airport, Penang, Kuta, Bali and Legian, and our own significant hotel development plans over the same period, by 2013 we will have approximately 100 hotels in key cities across Asia.”