Fancy a room for just US$3 plus taxes in a major Southeast Asian city? A no- frills hotel opened yesterday in Kuala Lumpur that its owners hope will make waves in budget accommodation across the region.
The first in a chain expected to expand across Malaysia and the region, the 173-room inn run by TuneHotels seems to be off to a promising start. Launched by the founders of low-cost carrier AirAsia, it has sold 3,500 rooms for the next six months since online booking began in March.
Tune director Dennis Melka says the idea of starting a no-frills hotel was born as AirAsia expanded its route network and started flying to towns such as Kota Kinabalu and Kuching in east Malaysia.
'The feedback was that while one could fly for less than M$100 [HK$228], there were either no hotels at that price or that those in that price range were in horrid condition,' Melka says.
While budget accommodation is available throughout Malaysia, most of it is in poor shape. 'We went to Penang to check out the market,' Melka says. 'For less than US$20, the rooms available had cockroaches, messy beds and even vice activities. Yet they were running at 80-90 per cent occupancy.'
The company hopes to fill a gap in the budget hotel market by offering clean, safe rooms and convenience. TuneHotels is touting its establishments to 'anyone wanting a good night's sleep at a good price', Melka says.